Ground 3 of Schedule 2 to the Housing Act 1988 is one of the lesser-known mandatory Section 8 possession grounds, but it is highly relevant for landlords who converted a holiday property into a residential letting — whether to generate income during an economic downturn, to accommodate family, or during the COVID-19 period — and who now wish to return the property to short-term or holiday use.
Ground 3 is mandatory. Available where: (1) the property was let as holiday accommodation at any time in the 12 months before the assured tenancy began; and (2) written notice was given to the tenant at or before the tenancy start that possession might be recovered on this ground. Notice period: 2 months minimum on Form 3A.
The statutory wording of Ground 3
Schedule 2 Ground 3 provides: 'The tenancy is a fixed term tenancy and — (a) not later than the beginning of the tenancy the landlord gave notice in writing to the tenant that possession might be recovered on this ground; and (b) the dwelling-house has been let as holiday accommodation at any time in the period of 12 months ending immediately before the beginning of the tenancy.'
For tenancies created before 1 May 2026, Ground 3 was only available if the landlord gave written notice at or before the start of the tenancy that possession might be recovered on this ground. Without that notice, Ground 3 was not available. Check your original tenancy paperwork carefully.
Who Ground 3 is designed for
- Coastal or rural property owners: Landlords who own Airbnb-style or cottage holiday properties and temporarily converted them to residential ASTs — for example during the COVID-19 period when holiday lettings were impractical — and who now wish to return to short-term letting
- COVID-era conversions: Many holiday landlords granted residential tenancies during 2020–2022 when the short-term rental market collapsed. Those who included a Ground 3 notice in their original tenancy agreement can now recover possession under Ground 3
- Seasonal property managers: Landlords who let a residential tenancy out of season but wish to return the property to holiday use each summer
- Portfolio restructuring: Landlords restructuring from residential to short-term letting to access higher yields in tourist areas
The requirements you must prove
- The property was let as holiday accommodation within 12 months before the tenancy: 'Holiday accommodation' typically means short-term holiday lets marketed to holidaymakers — Airbnb, Sykes Cottages, booking.com, holiday lodge parks etc. The 12-month window is measured to the start of the assured tenancy
- Written notice was given at or before the tenancy start: For pre-1 May 2026 tenancies, you must have served written notice on the tenant at or before the tenancy start that possession might be recovered under Ground 3. This is a strict requirement — without it, Ground 3 is unavailable
- The tenancy was (at its inception) a fixed-term tenancy: Ground 3 under the original HA 1988 wording applies only where the tenancy was originally a fixed-term AST. Under the RRA 2025 transitional regime all tenancies auto-converted on 1 May 2026 — seek specialist advice if your tenancy was already periodic at conversion
Serving the Section 8 notice (Form 3A)
From 1 May 2026, all Section 8 notices must use Form 3A (updated to RRA 2025 standards). The notice must:
- Specify Ground 3 of Schedule 2 clearly
- State the date of first letting as holiday accommodation (evidencing the 12-month prior period)
- Give at least 2 months' notice before proceedings may begin
- Be served in accordance with the contractual or statutory service requirements
- Be served on every named tenant individually
The old 'Section 8 Notice Seeking Possession' form was updated on 1 May 2026. Any Section 8 notice served on or after 1 May 2026 must use the current Form 3A. LetSafe UK's Section 8 Notice Pack includes Form 3A updated for all current grounds including Ground 3.
Evidence to gather before serving notice
- Holiday letting records: Bookings, invoices, letting platform printouts (Airbnb, Vrbo, etc.) showing the property was let as holiday accommodation in the 12 months before the tenancy start
- Original notice to tenant: The written notice served at or before the tenancy start confirming Ground 3 might be relied upon — this is essential
- Tenancy agreement: Confirm the tenancy was originally granted as a fixed-term AST
- Evidence of intention to holiday-let: Forward bookings, correspondence with letting agents or platforms, marketing listings
What happens at court
Ground 3 is a mandatory ground. If you can prove the facts — prior holiday let within 12 months, proper notice at tenancy start, and fixed-term tenancy — the court must grant a possession order. Unlike discretionary grounds, the judge cannot refuse possession even if eviction would cause hardship to the tenant.
The court will scrutinise your evidence carefully. The requirement for written notice at tenancy start is strict. If you cannot produce that notice, Ground 3 will fail. In that case, consider whether Ground 1A (landlord intends to sell, if applicable) or Ground 9 (suitable alternative accommodation) might be available instead.
Ground 3 and the Renters' Rights Act 2025
The Renters' Rights Act 2025 (in force 1 May 2026) did not abolish Ground 3. The ground remains available under Schedule 2 to the Housing Act 1988, subject to the RRA 2025 notice requirements (Form 3A, minimum 2 months). Specialist advice is recommended if your Ground 3 claim arose from a pre-conversion fixed-term AST that is now a Periodic Assured Tenancy following the 1 May 2026 auto-conversion.