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The £3,600 Section 21 fine: what the first reported case cost, and how not to be next

11 min readBy Padlord

No, you cannot serve a Section 21 notice for a private assured tenancy in England any more. Since 1 May 2026, serving one is a breach of the Housing Act 1988 that your council can fine up to £7,000, and the first reported fine, from Gateshead Council, was £3,600.

The end of Section 21 itself is covered in what replaced Section 21. This post is about one mistake, using a notice the law no longer allows: what it costs and what to do instead.

What happened in the Gateshead Section 21 fine case?

A landlord served a Section 21 notice after 1 May 2026 and was fined £3,600. According to Gateshead Council's release of 20 October 2026, its private sector housing team told the landlord the notice was not valid and explained the lawful routes to possession. It also issued a notice of the proposed fine, so the landlord could respond, and a final notice on 24 August 2026. The landlord paid within 28 days, earning the council's 15% discount: £3,600 less £540, so £3,060, received on 8 September.

The council calls it the first penalty it has issued under the new law "to have concluded", and says "other cases are being considered". Landlord Today's headline on 26 October 2026 called it the first Section 21 fine under the Act. Neither report establishes that it was the first nationally, so read "first" as first reported.

Can I still serve a Section 21 notice?

No, not for a private assured tenancy in England. Gov.uk says landlords "cannot use section 21" to seek possession (GOV.UK, updated 13 July 2026), and Form 6A now says "Do not use this form if the property is rented privately" (assured tenancy forms). The government says the reforms will apply to social housing let by private registered providers from 2027.

Serving one is no longer merely pointless. Section 16E(1) of the Housing Act 1988, inserted by section 13 of the Renters' Rights Act 2025, says a landlord, or anyone acting for them, must not:

  • (b) purport to end the tenancy by a notice to quit;
  • (c) purport to end it, or require it to be ended, orally;
  • (d) serve a "purported notice of possession": under section 16M, any written document, "however expressed", that is not in accordance with section 8 but purports to be a section 8 notice or to end the tenancy.

On our reading a Section 21 notice falls under (d). Under section 16I the council can fine up to £7,000 if satisfied beyond reasonable doubt, though not under both (b) and (d) for the same conduct.

A Section 21 notice validly served before 1 May was lawful when served, but the request for the court to issue a claim had to be made by 31 July 2026 at the latest, or sooner if the notice's own time limit expired (Schedule 6, paragraph 4). That limit was normally six months from service; certain notices needing more than two months used four months from the date specified in the notice instead. A claim requested in time can continue after 31 July until proceedings conclude.

What is the fine for serving a Section 21 notice?

The national starting point is £6,000, within a £7,000 cap. The government's civil penalties guidance of 13 November 2025, which councils must have regard to, sets £6,000 for "serving a possession notice that attempts to end the tenancy outside of the prescribed section 8 process", and the same for a notice to quit or an oral attempt. The rest are in our landlord fines table.

It escalates if you carry on. Under section 16J(3) to (5), conduct continuing beyond 28 days after a penalty can become an offence once the penalty is final; a timely appeal moves that clock to when the appeal ends. Fresh conduct attracting a section 16I penalty within five years of an earlier penalty being imposed for different conduct (once that penalty is final), or a section 16J conviction for different conduct, can also be an offence. The council can prosecute or impose a civil penalty of up to £40,000 under section 16K. For two £6,000 breaches, the guidance's starting point is (£6,000 + £6,000) x 2 = £24,000.

A single invalid notice is not a rent repayment order offence: the list in section 40 of the Housing and Planning Act 2016 covers s.16J(1), (2) and (3), not s.16E. A continuing breach under s.16J(3) is on it: another reason to withdraw a bad notice fast.

Which notices count as an illegal eviction notice now?

A landlord's purported notice ending a private assured tenancy outside Section 8, or an oral demand that it end, is covered, as of 26 October 2026. This does not prevent a tenant giving their own valid notice or freely agreeing a surrender; a court claim form is also excluded from the section 16M definition.

Wrong notice or actionWhy it failsLegal basisLawful route instead
Section 21 notice (Form 6A or your own letter) served on or after 1 May 2026Section 21 no longer applies to private tenanciess.16E(1)(d); £6,000 starting pointForm 3A on a Section 8 ground you can prove
Landlord's notice to quitIt "is of no effect" on an assured tenancy (s.5(1))s.16E(1)(b); £6,000Form 3A
"Your fixed term ends, please leave" letterFixed terms are gone; tenancies are periodics.16E(1)(d); £6,000Form 3A, or the tenant's own notice if they choose to go
Orally purporting to end the tenancy or requiring it to endOral attempts are banneds.16E(1)(c); £6,000Form 3A, in writing
Form 3A on a ground you do not reasonably believe appliesA ground needs a real basis, such as a genuine plan to sellIf the tenant leaves within four months without a court order: s.16E(1)(e), £6,000, or s.16J(1) offence if knowing or reckless, £30,000A ground whose facts you can evidence
Form 3A giving too little noticeNot in accordance with s.8; the court can dismiss the claimPossibly s.16E(1)(d) on a literal readingCheck the date before serving

Be careful with Form 3A itself: section 16M's wording includes a written document "not in accordance with section 8" that purports to be a section 8 notice. Get advice about a defective notice before relying on it. Section 8(1)(b) lets the court dispense with a notice in some cases, subject to section 8(5), but that is not a general exemption from the penalty rules.

Is a letting agent's Section 21 notice the landlord's problem?

It can be, for both landlord and agent. The duties apply to a "relevant person": the landlord, anyone acting for the landlord "otherwise than as a legal representative", or anyone purporting to act for them (s.16M). Section 16H adds that a landlord can breach the rules through someone acting on their behalf, and where one person acted for others the council can fine them jointly, each liable for the whole amount (s.16I(7)). The guidance tells councils to decide on the evidence "where responsibility for the breach or offence lies". A solicitor acting as your legal representative is outside the definition; an agent sending last year's template is not.

How does a council decide the size of the fine?

It starts at £6,000 and moves with the facts. The guidance's factors include how many properties you own or manage, previous non-compliance, any admission, "whether and how quickly the offender has remedied the non-compliance", the tenants' vulnerability and whether harm materialised. A council may also adjust for local rents, by no more than the percentage its average rent sits above or below England's. The Gateshead release does not explain the £3,600 figure, which is 40% below £6,000.

The process runs on fixed deadlines:

  1. Notice of intent, normally within six months of the council having enough evidence; for continuing conduct, the window extends to six months after it stops.
  2. 28 days for your written representations.
  3. Final notice, payable within 28 days.
  4. Appeal to the First-tier Tribunal (Property Chamber) within 28 days of the final notice, which suspends it.

A prompt-payment discount is local policy: the guidance lets councils offer one, capped at a third of the final notice. Gateshead's was 15%.

I served a Section 21 after 1 May: what now?

Stop relying on it today, and say so in writing:

  1. Do not act on it. No court claim, no asking the tenant to leave by its date, no counting it as notice.
  2. Write to the tenant. Say the notice dated X has no legal effect, the tenancy continues on its current terms, and they do not need to leave because of it. It does not undo the breach or guarantee anything, but prompt remedy is a factor the guidance names, and the letter records what you did to put it right.
  3. Check your agent. Ask whether it came from their templates and which other tenancies got one; withdraw those too.
  4. Keep records. The notice, how and when it was served, your withdrawal letter and all messages with the tenant and council.
  5. Answer any notice of intent within 28 days with the facts and your mitigation, and take advice before paying or appealing a final notice.

Never backdate a notice to before 1 May, alter records or lean on the tenant to go. Unlawful eviction or harassment is an offence with a £35,000 starting point.

How do you end a tenancy lawfully in 2026?

For a private assured tenancy, use Form 3A on a Section 8 ground you can prove, giving the notice that ground requires and setting out the ground and your reasons. The free Section 8 notice period checker shows grounds and notice periods for your situation; check the current GOV.UK guidance linked above before serving. If the tenant stays, the court decides; you cannot evict them yourself.

What does an invalid notice cost compared with Ground 1A?

An invalid notice can attract a fine with a £6,000 starting point and delay the lawful process. In this worked example, using illustrative figures rather than a reported case, two landlords each let a flat at £1,200 a month on a tenancy that began on 1 June 2025, and each decides to sell.

  • Landlord A serves a Section 21 notice on 1 May 2026. The tenant contacts the council, which writes in May; A then serves a valid Ground 1A notice on 1 June 2026.
  • Landlord B serves the Ground 1A notice on 1 May 2026. Ground 1A needs four months' notice and a tenancy that began at least a year before the date in the notice, which June 2025 clears for both landlords.
Landlord ALandlord B
Valid notice served1 June 20261 May 2026
Earliest date in the notice1 October 20261 September 2026
Rent collected from 1 May until that date, if paid and the tenant stays5 x £1,200 = £6,0004 x £1,200 = £4,800
Fine exposure£6,000 starting point, up to £7,000None

The four-month clock only starts when a valid notice is served. Assuming the tenant stays and pays throughout, B collects £4,800 while waiting. A's starting-point fine is £1,200 more than all four months of that rent (still £5,100 after a Gateshead-style 15% discount), and A's earliest date is one month later. Continued reliance after a final penalty, beyond the 28-day period described above, could bring a £24,000 starting point. Both face the ban on reletting from service until 12 months after the date specified for proceedings to begin, subject to the statutory exceptions in sections 16F and 16M.

How does Padlord help?

Padlord keeps each property's tenancy record, including the start date relevant to when a Ground 1 or 1A notice can take effect, and lets you store notices, withdrawal letters and council letters as property documents. It flags gas safety, electrical, EPC and licence deadlines, and missing smoke and carbon monoxide checks at tenancy start; the free compliance deadline checker covers gas, EICR, EPC and licence dates without an account. These tools do not draft or serve possession notices.

This covers England only; Wales and Scotland have their own tenancy and possession rules.

General information, not legal, tax or financial advice. Sources checked on 26 October 2026.

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This article is general information for UK landlords, not personal tax, legal or financial advice. The rules change and your circumstances differ, so check the current position on GOV.UK or with a qualified adviser before you act.

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