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14/7/25 8:13 pm
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An investigation has revealed that Lambeth Council is using an arm’s-length company structure to serve tenants with Section 21 no-fault eviction notices, despite the national pledges to abolish them.
Homes for Lambeth, a council-owned but separately constituted landlord, has issued Section 21 notices to tenants in properties it let on private terms, a route that was unavailable to the council itself. The council says this approach helps it recover homes for urgent housing needs.
For private landlords, this raises key questions: Is this loophole likely to remain open? Will other councils follow suit? And what does it mean for Section 21’s future in the private sector?
Section 21: Still legal, but under pressure
Despite government commitments, Section 21 remains lawful in England as of October 2025. The long-awaited Renters’ Rights Bill, which includes plans to abolish Section 21, has seen repeated delays. Landlords can still use it, provided they follow the correct process: serving a valid notice, making sure all compliance requirements (such as deposit protection and gas safety) are met, and giving the minimum two months’ notice.
Lambeth’s outsourced housing provider highlights inconsistencies in how different parts of the housing system are operating during the transition. Campaigners argue that this effectively allows a local authority to act as a private landlord and use Section 21 while pushing for its abolition sector wide.
Practical guidance for landlords
Section 21 is still a legal tool. For now, at least. If you need to regain possession, use it while you can, but make sure you are compliant with every step. Mistakes can delay or invalidate the process.
Once the Renters’ Rights Bill becomes law, landlords will need to rely on statutory grounds (for example, rent arrears, anti-social behaviour or intention to sell/move in). Start reviewing documentation, processes and approaches now..
Final thought
Councils’ approaches to temporary accommodation and acquisitions may influence local licensing, enforcement and court pressures. Keep an eye on borough-level developments, not just national headlines.
Paul Sowerbutts, Head of Legal at Landlord Action says: “Landlords want clarity and consistency. Until the new law starts, Section 21 remains a legal route but it must be used properly and as a last resort. My advice is twofold: get watertight on compliance today and prepare your processes for a post-Section-21 world so you’re not caught out when the rules change.”
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