What’s changing with Section 21?

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Under current rules, Section 21 allows landlords to evict tenants without giving a reason, as long as they provide two months' notice after a fixed-term lease ends. It's been a safety net for landlords, offering a relatively straightforward route to regain possession of their property.

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The new legislation, part of the Renters (Reform) Bill, aims to provide more stability for tenants, but it also removes some key freedoms landlords have relied on. Once Section 21 is scrapped:

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• Landlords will only be able to evict tenants using Section 8, which requires specific grounds (e.g., rent arrears or breach of tenancy terms).
• Reclaiming a property for personal use or sale will become more bureaucratically complex.
• Disputes may become more drawn-out and harder to resolve in court.
  

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What the sources say

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• The bill was introduced into Parliament in September 2024, and as of January 2025, it’s progressing toward becoming law in summer 2025
• The UK government official site confirms it will ban Section 21 evictions for new and existing tenancies, removing no-fault notices entirely
  
• Fact-checkers and independent analysts (e.g., Full Fact) confirm the government is “on track” to abolish Section 21 notices in England
  

Why this matters for landlords

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These reforms, while tenant-focused, may unintentionally add risk and friction for property owners. In particular, loss of flexibility is a serious concern. If you can't exit a tenancy easily, your investment becomes harder to manage, especially if your circumstances change.

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If you’re a landlord who values control, liquidity, and peace of mind, the evolving long-term rental landscape may no longer be the right fit.

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The case for short-term rentals

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Short-term rentals, whether through platforms like Airbnb or managed services like Houst are increasingly appealing for a number of reasons:

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1. Flexibility: You can block off dates for personal use or maintenance, and adjust your strategy seasonally.

2. Higher yields: In many UK cities, well-managed short lets outperform traditional rents, especially during peak tourist seasons.

3. Professional management: Services like Houst handle everything: guest communication, cleaning, pricing optimisation, so you earn more, without the hassle.

4. Adaptability: With no long-term tenant contracts, you’re free to adjust to changing market conditions or future regulations.

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Long‑term vs short‑term rentals

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What’s next?

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With Section 21 on its way out, now is the ideal time to assess your property portfolio. Are long-term tenants still the best option in today’s climate? Or could switching to short-term lets give you more control, better income, and less regulatory hassle?

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At Houst, we help landlords make this transition smoothly. From marketing to management, we take care of everything so you can make the most of your property, without being tied down.

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Monthly rental income: long-term vs short-term

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Why now is the moment to pivot? 

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With Section 21 set to be scrapped, long‑term rentals are losing flexibility. For landlords who want:

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• Control - e.g., to reclaim properties or exit tenancies quickly
• Higher returns during peak seasons
• Hassle-free operation, without regulatory court pressures
  
  

…short‑term rentals managed by a platform like Houst offer a savvy alternative.

With Houst, you get access to

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• Revenue optimisation through dynamic nightly pricing
• Full-service management: guest vetting, check-ins, cleaning, maintenance
• Flexibility to block dates for personal use or maintenance, or exit market fast
• Compliance with short‑let regulations, without worrying about tenancy law
  
  

Final thoughts

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The abolition of Section 21, expected by late 2025, marks a pivotal shift in the rental market. It’s a wake-up call for landlords:

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> Long‑term letting just got more complicated.

> Short‑term, professionally managed lets? More attractive than ever.

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‍Interested in exploring short-term rentals?

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Talk to our team today and see how Houst can help you future-proof your rental income.