Eviction disputes lead to rising costs

Leading law firm Thackray Williams has raised concerns about the escalating eviction disputes affecting landlords, tenants, and the courts, warning of the mounting costs and delays these cases are generating. According to the firm, there has been a notable increase in instructions from landlords seeking vacant possession of properties, both prior to and following the implementation of the Renters' Rights Act (RRA) on 1 May 2026. This has been coupled with a rise in challenges from tenants receiving eviction notices. Mustafa Sidki, Contentious Construction Litigation Partner at Thackray Williams, expressed concern that the growing number of landlords attempting to sell their investments is exacerbating the shortage of affordable rental housing. He stated, “Unfortunately, the number of landlords looking to sell their investments is exacerbating the lack of affordable rental housing, prompting tenants to challenge eviction notices because they can’t find anywhere else to live.”

The resulting pressures in the private rental sector have created a “perfect storm,” leading to protracted and costly litigation and placing additional stress on an already overburdened court system. Sidki noted, “Unless the economics of the private rented sector improve and more affordable rental homes become available, renters will struggle to find homes, landlords are going to face increasing costs as their tenants resist eviction and the courts will have to contend with a growing backlog.”

Recent government statistics support these concerns, showing a 16% rise in accelerated landlord possession claims (including Section 21 claims) from April to June 2026 compared to the same timeframe in 2025. A June survey by Savills also revealed that 11% of landlords had sold one or more properties. In response to these developments, Thackray Williams is witnessing a surge in enquiries from landlords aiming to issue last-minute Section 21 ‘no fault’ eviction notices before they are abolished due to the RRA. Sidki elaborated, “Every one of these has been resisted by the tenants, who have refused to vacate, necessitating accelerated possession proceedings.” Each of these claims has been challenged by tenants who request additional time to secure alternative accommodation, resulting in full court hearings and a rise in legal costs for landlords.

Thackray Williams is also experiencing an uptick in enquiries from tenants facing eviction and instructions from landlords to serve eviction notices under Section 8 of the Housing Act 1988. “The route to acquiring possession has changed with the implementation of the RRA, but the increasingly difficult economics of being a landlord haven’t,” Sidki remarked. This situation is forcing landlords to rethink their investments due to reduced flexibility, increased taxation on property income, and rising operational costs, including maintenance and insurance.

The added pressures include new financial reporting requirements and elevated mortgage refinance rates as fixed-rate buy-to-let agreements come to an end. A Savills survey indicated that 30% of landlords were more likely to consider selling their rental properties within the next two years, while 62% reported being significantly less inclined to purchase additional properties. Sidki cautioned that this is not just a landlord or tenant problem. “This is not simply a landlord issue or a tenant issue — it is a system-wide pressure point,” he said. “Possession disputes are now exposing the strain across the whole rental market, from landlords reassessing whether they can afford to stay invested, to renters struggling to find homes, and courts being asked to absorb the fallout.”