Section 21 and Property Licensing in Islington: What the Renters' Rights Act Changed

Before 1 May 2026, one of the sharpest consequences of operating without a licence in Islington was the Section 21 block: a landlord who had not applied for a required property licence could not serve a valid Section 21 notice to end the tenancy. That single rule pushed thousands of reluctant landlords into licensing compliance.

The Renters' Rights Act 2025 changed the landscape entirely. Section 21 no longer exists.

What the Renters' Rights Act Abolished

From 1 May 2026, the Renters' Rights Act converted all assured shorthold tenancies into assured periodic tenancies and abolished the no-fault Section 21 eviction route. Landlords in England can no longer serve a Section 21 notice — whether they hold a property licence or not.

This means the old incentive ("get licensed or you cannot evict") no longer applies in its original form. But it does not mean licensing has become optional.

Why Licensing Still Matters for Possession

The Renters' Rights Act replaced Section 21 with expanded Section 8 grounds. To regain possession, landlords must now rely on fault-based or circumstance-based grounds — rent arrears, anti-social behaviour, the landlord intending to sell or move in, and so on.

Operating without a required licence remains a criminal offence under the Housing Act 2004 and can lead to separate council enforcement. An unlicensed status does not by itself establish whether a particular Section 8 claim is valid; check the rules for the specific possession ground.

Tenants or the local authority can apply for Rent Repayment Orders for qualifying offences. For offences committed on or after 1 May 2026, the maximum recovery period is up to 24 months of gross rent. An RRO is a separate remedy; it is not an automatic consequence of a possession claim.

The Civil Penalty Risk Remains Unchanged

Islington's enforcement powers are unaffected by the end of Section 21. Operating a licensable property without a licence carries a civil penalty of up to £40,000 per offence. The council's baseline starting penalty for first-time administrative non-compliance sits around £12,000.

If a landlord attempts to recover the property through Section 8 while unlicensed, the tenant's solicitor may notify the council — which can trigger an investigation, a civil penalty, and an RRO application running in parallel with the possession proceedings.

What Islington Landlords Should Do Now

The disappearance of Section 21 removes one specific enforcement lever, but the remaining consequences of non-licensing — civil penalties, Rent Repayment Orders, banning orders and management orders — are all either unchanged or strengthened under the Renters' Rights Act.

If you have been relying on "I'll get the licence when I need to evict," that calculus no longer works. Once a licensing scheme is in force for the property's area, the licence is required from the start of the letting, not from the moment you want the tenant out.

Our Islington Landlord Licensing Guide covers the full enforcement framework — including how civil penalties, RROs and the new possession grounds interact with licensing status — dated to the rules in force from May 2026.

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