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14/7/25 8:13 pm
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A recent investigation has uncovered that several local councils are using arm’s-length companies to issue Section 21 eviction notices. This development is important for landlords to understand, especially as major changes to eviction laws are on the horizon.
What happened?
On 18 October 2025, The Guardian revealed that five councils including Lambeth, Reading, Blackpool, Nottingham, and Enfield had served nearly 200 Section 21 no-fault eviction notices through companies set up separately from the councils themselves. These arm’s-length companies manage some council housing on private tenancy terms. Unlike councils, which are generally restricted from using Section 21, these companies can still issue no-fault eviction notices.
For example, Lambeth previously used an arm’s-length company called Homes for Lambeth to serve Section 21 notices, a practice now under renewed scrutiny.
Why should landlords care?
Section 21 notices remain legal in England for now, while the government’s Renters’ Rights Bill works its way through Parliament. This Bill includes plans to abolish Section 21, with an expected implementation date in 2026 once the necessary rules and systems are in place.
During this transition, landlords face a mixed picture. Councils using arm’s-length companies are effectively bypassing some restrictions, creating inconsistent eviction practices. This patchwork approach can impact local rental markets and enforcement.
If you’re a landlord, here’s what this means:
• Local council policies affect you. How your council manages its temporary accommodation and housing stock can influence licensing rules, enforcement activity, and court processes in your area
• You might see changes in eviction patterns. Increased use of arm’s-length companies to serve Section 21 notices could affect the supply and demand balance, and the way disputes are handled locally
What should landlords do now?
• Check your paperwork is correct. Ensure deposits are protected, tenants have received prescribed information, gas safety certificates and Energy Performance Certificates (EPCs) are up to date, and the “How to Rent” guide has been given at the start of tenancy. These steps are critical to serving valid eviction notices
• Prepare for the end of Section 21. Start familiarising yourself with Section 8 eviction grounds, which require landlords to prove specific reasons such as rent arrears, breach of tenancy terms, or a landlord’s intention to sell or move in
• Keep an eye on local council activity. Watch for announcements about arm’s-length company use, licensing changes, or homelessness pressures in your borough. These can signal shifts in enforcement or housing availability that affect your lettings business
Bottom line: The housing landscape is changing, and councils are finding new ways to manage their housing stock during this legal transition. Staying informed and keeping your compliance tight will help you adapt smoothly and protect your rental income.
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