Landlords Face New Eviction Hurdles as Tenants Turn Homes into Short-Term Rentals

Landlords in the UK are encountering new challenges when dealing with tenants who sublet their properties for short-term rentals, such as on Airbnb. The Renters' Rights Act, which came into effect on May 1, 2026, has altered eviction procedures, making it more difficult for landlords to regain possession of their properties without cause.

Previously, landlords could use 'no-fault' evictions under Section 21 of the Housing Act 1988 to ask tenants to leave with a specified notice period, even if the tenant had not breached the terms of their agreement. This method was often seen as a simpler route to repossessing a property. However, the Renters' Rights Act has abolished this option, compelling landlords to provide specific grounds for eviction. These grounds can include non-payment of rent or a breach of the tenancy agreement. Landlords can also seek possession if they intend to sell the property or move back into it themselves.

For landlords discovering their tenants are operating the property as a short-term holiday let, the most viable path for eviction is now Section 8 of the Housing Act, specifically Ground 12. This ground allows a court to order possession if a tenant has breached a term of their tenancy agreement, other than those related to rent payments. Solicitors advise landlords to meticulously review their tenancy agreements, as most standard contracts prohibit subletting or allowing others to occupy the property without explicit written permission. Advertising and using the property for short stays without consent is likely to be considered a serious breach.

Legal and Insurance Implications

Beyond the breach of the tenancy agreement, tenants engaging in unauthorized short-term letting may also face issues with planning regulations. In London, for instance, properties can generally be let on a short-term basis for a maximum of 90 nights per calendar year. Exceeding this limit may require planning permission. Outside of London, the applicability of such rules depends on whether the use constitutes a material change of use.

A significant concern for landlords is the potential invalidation of their buildings insurance. Standard landlord insurance policies may not cover the risks associated with a continuous stream of paying holiday guests. Landlords are urged to contact their insurers immediately to confirm whether their existing cover remains valid under these circumstances. Similarly, any mortgage conditions, lease restrictions, or freeholder requirements related to the property's use must be reviewed.

Steps for Landlords

To address such situations, legal experts recommend landlords gather evidence, including screenshots of online listings and any available booking information. If a letting agent manages the property, a written explanation should be requested. Landlords should also contact the booking platforms directly to report the unauthorized listings and provide proof of ownership to have them removed.

While the situation can be frustrating, landlords are advised to proceed methodically, ensuring they protect their insurance status and follow the correct legal procedures. Incorrectly handled eviction attempts can be costly and time-consuming. Obtaining specialist legal advice early in the process is strongly recommended to navigate the complex statutory requirements and strict timescales involved in serving notice and pursuing possession.