Hundreds of thousands of UK landlords risk a £19,000 bill under a Labour Party crackdown. Under the new rules from the Renters' Rights Bill, Section 21 'no-fault' evictions will be scrapped.
According to the renters' union Acorn, no-fault evictions made up one in five of the reports they received from members in October, however this rose to nearly one in three by January. Research shows eviction costs already range between £12,708 and £19,223 when lost rent is factored in, with London landlords facing the highest bills.
Industry figures warn these costs will climb further under the new regime, with legal fees alone expected to reach at least £3,000 per case.
As well as a ban on no fault evictions, there are more rules on the way. Fixed-term contracts will also be scrapped, with all tenancies becoming periodic (rolling week-to-week or month-to-month), giving tenants more flexibility to leave with two months' notice.
Craig Morgan, insurance expert at SJL, says: 'The Renters' Rights Act doesn't just change how landlords manage tenancies, it fundamentally changes the financial stakes when something goes wrong. An eviction that once cost a few hundred pounds to initiate now can easily cost thousands in legal fees alone, before you even count a single month of lost rent.'
Michael Dear, Landlord Insurance Product Lead at Hiscox, says: 'The Renters' Rights Act coming into force in May 2026 brings greater security and clearer protections for tenants, including limits on rent increases and the end of fixed-term tenancies. These changes aim to make renting fairer, and give tenants more control and peace of mind in their homes.'
Rent rules will be tightened so landlords can only increase rent once per year, and tenants will have the right to challenge unfair increases. While landlords still retain the ability to regain their property for legitimate reasons, the overall aim of these reforms is to create a more stable, transparent, and balanced rental market.
