Abolition of Section 21 and the Consumer Power Shift

What Can Build-to-Rent Learn from the Hospitality Industry?

The abolition of Section 21 “no fault” evictions marks a turning point for the UK rental sector. For Build-to-Rent (BTR) operators, this reform is not just a legal change but a fundamental shift in the balance of power between landlords and tenants. The question now is how BTR can adapt, and even thrive, by embracing a more consumer-centric approach, much like the hospitality industry has done over the past decade.

A New Tenant–Landlord Relationship

With Section 21 gone, tenants will enjoy greater security and confidence. The traditional dynamic where landlords held most of the cards will give way to a more balanced relationship. Tenants, now empowered to challenge rent increases and appeal decisions, will expect more from their homes and the people who manage them. This shift is likely to increase tenant churn and encourage residents to be more vocal about their experiences, both positive and negative.

As Dave Butler, Non-Executive Director and Board Adviser for TrustedStays, puts it, "The real issue is how do you keep residents happy? How do you have a customer focus? Ultimately, this is about how you deal with residents — financials will be a consequence of it." His words highlight why tenant experience can no longer be treated as secondary to revenue.

Lessons from Hospitality

For many landlords and operators, this change may feel like a loss of control. However, the hospitality industry offers a blueprint for turning this challenge into an opportunity. Short-term rentals have long operated in an environment where guests can instantly share feedback and influence brand reputation. Rather than resisting this transparency, the most successful hospitality brands have leaned into it — investing in service, building trust, and creating communities that guests want to return to.

Communication, Flexibility, and Community

BTR operators can take several lessons from this approach. First, communication becomes paramount. Residents want to feel heard and informed, whether it’s about maintenance updates, community events, or changes in policy. Second, flexibility is key. Just as hotels offer a range of stay options, BTR schemes can explore more adaptable tenancy lengths or hybrid models that combine short- and long-term rentals.

Perhaps most importantly, BTR operators must focus on building a sense of community. In the hospitality world, guest loyalty is earned through thoughtful service and genuine engagement. For BTR, this means creating spaces where residents feel they belong, where their concerns are addressed promptly, and where positive experiences are the norm rather than the exception. The end of Section 21 could make tenants more willing to compare notes, share grievances, and move on if their expectations aren’t met. Operators who ignore this risk higher churn and reputational damage.

Balancing Revenue and Experience

At the same time, protecting revenue remains essential. The key is to put in place fair, transparent policies that balance business needs with tenant experience. Data-driven insights, such as tracking resident satisfaction and understanding the reasons behind churn, can help operators make informed decisions without resorting to rigid or punitive measures. Diversifying revenue streams, for example by offering short-term lets during periods of lower demand, can also provide a buffer against market turbulence.

Key Takeaways

• The abolition of Section 21 shifts power toward tenants, demanding a more consumer-centric approach from BTR operators.

• Embracing lessons from hospitality-such as prioritising service, communication, and community-can turn regulatory change into a brand-building opportunity.

• Flexibility in tenancy models and transparent, fair policies are essential for balancing resident experience with business needs.

• Data-driven decision-making and diversified revenue streams will help BTR operators navigate increased churn and market uncertainty.

• A service-first mindset is not just good for tenants — it’s good for business and will define the leaders in the new era of renting.