Understanding the Housing Act 1988

For over three decades, the Housing Act 1988 has been the rulebook for the private rented sector in England and Wales. It changed the landscape of letting in a way that hadn’t been seen before by introducing the Assured Shorthold Tenancy (AST) and giving landlords a clear route to possession.

To grasp the sheer scale of its influence, you only have to look at the numbers. As of the end of March 2024, around 19% of all UK households were part of the private rented sector. That represents a massive market of roughly 5.5 million dwellings, the majority of which are let on Assured Shorthold Tenancies created by this very Act.

In other words, the Housing Act 1988 isn't an antique or a historical quirk. It is the operating system for nearly one in five UK homes.

But hang on… the landscape is now changing. With the Renters' Rights Act 2025 on the statute book and set for implementation in 2026, parts of this historic Act are being overhauled. 

That’s why it’s time for every landlord, whether a new investor or an experienced portfolio manager, to get their heads around the Housing Act 1988, both as it stands today and how it is changing. This will inevitably help you stay compliant and protect your assets.

The Foundation: Assured Shorthold Tenancies (ASTs)

To understand where we are going, we have to look at where we started. Before 1988, renting was heavily regulated with strict rent controls and lifetime security of tenure for tenants. The Housing Act 1988 changed this by introducing the Assured Shorthold Tenancy (AST).

Currently, this is the default legal category for most residential tenancies in the private sector. It strikes a balance, giving tenants security for a fixed period while guaranteeing landlords the right to regain possession at the end of that term, provided the correct legal notices are served.

Key Sections Every Landlord Must Know

While the legislation covers a lot of ground, three specific sections dictate your daily reality as a landlord.

1. Section 8: Eviction With Cause

If a tenancy goes wrong, usually due to unpaid rent or anti-social behaviour, Section 8 of the Housing Act 1988 is your route to possession.

Unlike the "no-fault" route, you can't simply ask the tenant to leave. You must prove a specific legal reason or 'ground’' for the eviction. 

These fall into two categories: 

• Mandatory Grounds (e.g., Ground 8): If proven (such as 2 months' rent arrears), the court must grant you possession.
• Discretionary Grounds: The court will decide if eviction is fair based on the evidence available. 

Under the new Renters' Rights Act, Section 8 is being expanded and strengthened to become the only route to eviction. With this, new grounds are being introduced for selling the property or moving family members in. 

The arrears threshold will also increase from two months to three months, and the required notice period will double from two weeks to four weeks. 

This makes early intervention and tracking arrears via software more important than ever.

2. Section 13: Rent Increases

Section 13 offers a formal route to increase rent during a periodic tenancy (one that rolls on month-to-month) assuming your contract doesn't already have a rent review clause.

It effectively allows you to bring rents up to current market levels, though it does come with a safeguard: tenants have the right to challenge the figure at a tribunal if they believe the increase is unfair or above the market rate.

3. Section 21: The "No-Fault" Notice

Long considered the most controversial part of the legislation, the section 21 housing act notice allows landlords to regain possession at the end of a fixed term (or during a periodic tenancy) without citing a specific reason, so long as two months' notice is given.

For years, Section 21 has offered a faster, more predictable path to possession than the often slow and complex Section 8 hearings. But make no mistake, this is exactly where the legislative axe is falling.

The End of Section 21

You need to know that the Section 21 Housing Act notice is being abolished entirely under the Renters' Rights Act 2025, with the ban coming into force in 2026.

Once implemented, you will no longer be able to serve a "no-fault" notice, and all evictions will require you to prove a specific ground under Section 8. To add to that, tenancies will effectively become open-ended (periodic) from day one as the default. 

While the Section 21 Housing Act route remains valid until the implementation date in 2026, you’d be best served by preparing your systems and records for the new, evidence-based Section 8 regime now.

Related: How to Prepare for the Abolition of Section 21

Why You Need Professional Property Management Software

As Section 21 disappears, the quality of your records matters more than ever. Possession cases will increasingly turn on what you can evidence (rent schedules, notices, communications, and compliance documents). 

In the future, you will need to prove your reason for eviction in court, whether you’re doing so because of persistent rent arrears or a need to sell. This makes accurate record-keeping a necessity.

Landlord Studio helps you stay ahead of these changes by:

• ‍Digitising your documents: Store tenancy agreements and safety certificates securely in the cloud.‍
• Tracking rent automatically: Our bank feeds log every payment, creating an undeniable audit trail of arrears if you ever need to use Section 8 grounds.‍
• Reminders: Never miss a compliance deadline, so your notices remain valid.

Adapting to the New Landscape

The Housing Act 1988 remains the backbone of private renting, but it is not a static document. As we move towards 2026, the shift away from the Section 21 housing act process towards a strengthened Section 8 system marks a big change in how you manage your properties.

The landlords who succeed in this new environment will be those who understand the law, keep comprehensive records, and treat their portfolio like a genuine business. 

Make sure your portfolio is compliant and future-proof. Create your free Landlord Studio account today and take control of your property management.