Ground 1 After the Renters Rights Act 2025: A Practical Guide for Landlords

On 01 May 2026, the Renters Rights Act 2025 will introduce the most significant change to residential possession law in a generation. 

While the Act abolishes section 21 notices, it has also made significant changes to the current statutory grounds for possession. Amongst these changes are to the ‘Occupation’ ground (Ground 11) which allows landlords to seek possession where the landlord requires the property as the only or principal home of any of the following groups of people:

(a) the landlord;
(b) the landlord’s spouse, civil partner, or a person with whom the landlord lives as if married or in a civil partnership;
(c) the landlord’s—
    (i) parent;
    (ii) grandparent;
    (iii) sibling;
    (iv) child;
    (v) grandchild;
(d) a child or grandchild of a person mentioned in paragraph (b).

Under the revised framework, landlords must show a genuine intention to occupy the property in order to rely on Ground 1. Before serving notice, the tenancy must have been in place for at least one year². Any deposit taken must also be properly protected in an approved scheme, with the prescribed information served³.

Once these conditions are satisfied, the landlord may serve a section 8 notice and, if the tenant does not leave, issue a possession claim.

Financial Penalties and Misuse 

Ground 1 carries significant risks if used improperly. Penalties may be imposed where, within twelve months of serving the notice, the landlord lets the property on a term of less than 21 years, licenses it, or re-markets it⁴. A penalty will only arise if the tenant vacates voluntarily within four months of service⁵ and no possession order has been made⁶.

Where misuse is established and the tenant has left because of it, the local authority may impose a financial penalty of up to £7,000.00⁷

What does this mean for you?

Landlords should only serve notice where they (or another qualifying person) genuinely intend to move into the property. Any subsequent decision to re-let or re-market the property may expose the landlord to enforcement action and financial penalties.

In practical terms, landlords will need to plan ahead, ensure full compliance, and exercise care when preparing and serving notices. The new regime is more demanding than the previous no-fault system. Professional advice is therefore crucial to ensure notices are valid, risks are controlled, and the possession process is managed correctly from the outset.

With the abolition of section 21 and the introduction of a more regulated possession system, landlords will need to adapt quickly. The Landlord Group can help landlords assess their position, manage risk, and ensure they are fully prepared for the new requirements.

Bibliography

1 Renters Rights Act 2025, Schedule 1, Section 3, Ground 1

2 ibid

3  Renters Rights Act 2025, Section 26

4 Renters Rights Act 2025, Section 13

5 Renters Rights Act 2025, Section 15

6 ibid

7 ibid