Why evictions are more complicated for limited companies

A record number of landlords set up limited companies in 2025 – viewing it as a more tax efficient way to rent out their property. But the sweeping changes around evictions brought in with the Renters’ Rights Act have added a new layer of complexity to running a buy-to-let company. 

With the end of Section 21 evictions, all landlords must now rely on Section 8 to repossess their property. However, not all of the grounds that are available to private landlords work for limited companies. And rules around representation in court apply differently to limited companies too. 

So if you’re an incorporated landlord, or considering becoming one in the future, here’s what you must do differently to private landlords – and the grounds you can still use to get your property back.

Why evictions are more complicated for limited companies

Operating as a limited company means the legal owner of the property is the business itself, not you as an individual. This distinction complicates which grounds you can use for evictions, as well as how you’ll work with the county courts and local housing authorities. 

Here are three key considerations for limited company landlords:

1. You can’t “move back in” to your property

Section 8 includes Ground 1, a mandatory measure that allows private landlords to evict a tenant if they, or a close family member, want to move back into the property.

Because a limited company is a business, not a human, it can’t have a principal home or close family members – the two features of Ground 1. 

This means corporate landlords can’t use Ground 1 to repossess their property. If you decide you want to move into one of your company’s properties, you’ll need to find another way. We explain your options for doing this below. 

2. The cost of legal representation

Repossessing your property can be complex, especially if there’s a dispute between you and the tenant. And if you end up needing to go through the court system to complete the repossession, you could face unexpected legal fees. 

Unlike an individual landlord, a limited company cannot represent itself in court. Under Civil Procedure Rule, a company generally can’t represent itself without judicial permission. This means you’d need to hire a solicitor for any court hearing. 

What used to be straightforward under Section 21 is now a formal process that could cost your company thousands in mandatory legal fees.

3. The end of informal eviction attempts

In the past, a landlord could resolve some issues informally – by talking to a tenant, explaining the situation, and asking them to leave. 

But under the Renters’ Rights Act, attempting to end a tenancy by any means other than the Section 8 form is an offense. Asking a tenant to leave via a message, an email, or even serving a notice on the wrong form can now trigger massive penalties (reaching up to £40,000 for serious offences).

And because a limited company is a professional entity, local councils and trading standards could give you less benefit of the doubt. An informal text message from a director could easily result in a fine for the company.

Can limited companies use Section 8 Ground 1A?

Section 8 Ground 1A was introduced with the Renters’ Rights Act. It allows a landlord to evict a tenant if they genuinely intend to sell the property. Both private and corporate landlords can use this ground to repossess their property, but it comes with more risks for an incorporated landlord. 

The 12-month reletting ban 

You must be absolutely certain about the sale before serving a Ground 1A notice. To prevent landlords from faking a sale to evict a tenant, the law states you can’t re-let the property for 12 months after serving notice.

If the company evicts a tenant but the sale collapses – or nobody meets your asking price and you decide not to sell – you’re legally stuck. This could easily lead to no rental income for a whole year. 

And if you try to rent it out anyway, the former tenant can sue you for a rent repayment order of up to 12 months’ rent.

Read more: the reletting ban and the risks of void periods for landlords

Selling the property to yourself 

If you want to move into the property, your company can’t use Ground 1. The only workaround is to use Ground 1A to sell the property back to yourself as an individual. 

But you’ll need to pay stamp duty and capital gains tax for the company, making it an expensive way to reclaim your own property.

Can an incorporated landlord actually evict a tenant?

Since you can no longer evict a tenant just because you want to, you must rely on the specific, evidence-based grounds outlined in the Housing Act 1988.

Mandatory grounds (the judge must grant possession)

If you provide sufficient evidence for these grounds, the court has no choice but to award your company possession of the property.

Discretionary grounds (the judge could grant possession)

To use these grounds, you must prove the tenant committed the act and present a reasonable case to the judge. These claims are heavily scrutinised, making legal representation even more critical.

• breach of tenancy (Ground 12) – for when the tenant breaks a specific clause in the contract (like illegal subletting or repeatedly refusing access checks)
• anti-social behavior (Ground 14) – used when there’s a severe disturbance to neighbors. You can’t use this for minor issues – it requires evidence like police logs, council complaints, and formal warnings
• persistent late rent (Ground 11) – even if the tenant hasn’t hit the 13-week threshold for Ground 8, you can use this if they consistently pay late

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