The Renters’ Rights Bill is expected to bring one of the most significant changes to landlord legislation in over a decade. At its centre is the end of Section 21, the legal mechanism that currently allows landlords to end a tenancy without giving a reason. With implementation expected between late 2025 and early 2026, this change will close off a route that many landlords have used to regain possession when tenants fall into arrears.
This isn’t a scare story. Possession routes will still exist and good landlords will still have options but the shift requires a change in mindset. Where landlords may have once relied on serving notice to bring issues to a head, they will now need to rely more on structured communication and documented evidence, especially where rent arrears are involved.
Shifting focus from eviction to income protection
Section 21 has long acted as a fallback for landlords. It provided a relatively straightforward way to regain control of a property, often used when rent wasn’t being paid and conversations had broken down. Unfortunately, possession has never guaranteed recovery and in many cases, tenants have left with rent still owing, leaving landlords with a financial shortfall.
Once Section 21 is removed, this risk becomes even more pronounced. While Section 8 remains in place as a fault-based route to possession, it isn’t quick. The Ministry of Justice reported the average time for a possession claim to go through court was more than 23 weeks in 2024. In that time, arrears can escalate significantly, particularly if the tenant stops communicating.
This is where a shift in focus is key. Getting the property back doesn’t always mean the arrears will follow. Treating recovery as a separate process often leads to better outcomes. We regularly work with landlords who assume possession will resolve the problem only to find the debt is still outstanding months later.
Research by YouGov polling for Shelter found that in 2024, almost two thirds of working private renters in England were behind on rent or finding it difficult to pay. At the same time, average arrears per tenancy rose from £1,818 in 2024 to £2,237 in early 2025, highlighting growing financial pressure on the sector and the need for a consistent recovery approach. With arrears on the rise, a consistent approach to recovery is likely to play a key role in protecting income and preventing disputes from escalating.
What a proactive approach looks like
When rent payments fall behind, how a landlord responds often shapes the outcome. A proactive strategy doesn’t mean pressure or immediate legal action, it means having a consistent system, keeping a written record and starting conversations early.
The law now places emphasis on how arrears are handled as much as on tenant behaviour. Even dependable tenants can experience short-term financial stress and arrears don’t always signal the tenancy has failed. In our experience, an early, structured approach tends to preserve both income and relationships more effectively.
One landlord we supported had a tenant miss two months of rent after years of paying on time. Believing it would likely be a temporary issue, the landlord delayed acting. By the time they reached out, the balance had doubled. We helped to structure a staged repayment plan with professional and documented communication. Within ten weeks, the full amount had been paid and the tenancy continued.
In contrast, another landlord waited over six months before acting. The tenant stopped responding, arrears surpassed £8,000 and a possession claim was issued. The court process then took nearly five months. This delay meant by the time the property was regained, the tenant had moved on and the outstanding rent was not recovered. These examples show how similar starting points can lead to very different results depending on timing and process.
A clear example of why timing matters comes from the Ministry of Justice. In 2024, the average time from a landlord making a possession claim to the court granting it was 23.4 weeks, more than five months. Over such a period, arrears often grow and the likelihood of recovering the full amount reduces if early steps are not taken.
While limited data has been published on average arrears per tenancy in the UK, available figures point to growing financial strain. Research by Shelter found that nearly two thirds of working private renters in England were either falling behind on rent or finding it difficult to pay, with only 32% able to keep up without difficulty. This equates to around 4.45 million people in 2024.
Making rent recovery a core part of day-to-day property management rather than a last resort, gives landlords a better chance of safeguarding income without losing sight of fairness and compliance. Recovery is not about confrontation. Many tenants are more receptive to a neutral third party, particularly when direct communication with the landlord has broken down. A structured and impartial approach helps to keep expectations clear for everyone and can often prevent matters from escalating to the courts.
Adapting to the New Landscape
The end of Section 21 will be a turning point for the private rented sector. For some landlords, it will mean adjusting long-standing habits. For others, it will simply reinforce the value of early action and clear processes. The principles remain the same, know the position on rent at all times, keep communication constructive and document each step.
An active and ongoing approach to rent recovery helps safeguard income and keep tenancies on a professional footing in a changing legal landscape. The most successful outcomes are often the result of small, consistent actions taken early rather than reactive measures taken late.
While the legislation is changing, the importance of fairness, clarity and structure is not. Landlords who adapt to this new environment with a considered and consistent approach will be better placed to manage arrears effectively and protect the stability of their lettings for the future.
Redwood Collections is a leading UK debt recovery agency known for delivering effective and professional results. They specialise in both commercial and individual debt recovery, using a combination of proven strategies and a dedicated team to resolve outstanding debts swiftly and fairly. With extensive experience supporting landlords in recovering unpaid rent, they understand the importance of acting quickly while maintaining compliance. Committed to ethical practices and clear communication, they provide tailored solutions that reflect the needs of each client. This approach helps businesses protect their cash flow and maintain long-term financial stability. To learn more about their services, visit their dedicated landlords page or call them directly on 020 8080 2888.
