The Renters’ Rights Act 2025 has brought significant changes for landlords in England, particularly for those who want to sell a property that is currently occupied by tenants.
Since 1 May 2026, landlords can no longer serve a new Section 21 ‘no-fault’ eviction notice. Instead, if you want your tenant to leave because you intend to sell the property, you will normally need to rely on a specific legal ground for possession.
For landlords considering selling a rental property, understanding the new rules before putting the property on the market is important. The timing of notice, the age of the tenancy and what you intend to do if the sale falls through can all affect your options.
Can a Landlord Still Sell a Property Under the Renters’ Rights Act?
Yes. The Renters’ Rights Act does not prevent landlords from selling rental properties.
If you intend to sell and need the property to be vacant, the Act introduced Ground 1A – sale of dwelling house as a mandatory possession ground.
Ground 1A can be used where the landlord genuinely intends to sell the property. However, there are important restrictions surrounding when the ground can be used and how much notice the tenant must receive.
Alternatively, a landlord can potentially sell a property with the tenant remaining in occupation. In this situation, the buyer would generally be purchasing the property with the existing tenancy in place, making this option more suited to another landlord or property investor.
What is Ground 1A?
Ground 1A is the possession ground specifically intended for landlords who wish to sell their property.
A landlord relying on Ground 1A must normally give the tenant at least four months’ notice before applying to the court for possession.
This is considerably different from the previous Section 21 system, where two months’ notice was commonly associated with a no-fault possession notice.
The landlord must also genuinely intend to sell. Ground 1A should not be used simply as a means of removing one tenant so that the property can immediately be offered to somebody else.
The First 12 Months of the Tenancy are Protected
Another major change is the introduction of a protected period at the beginning of a tenancy.
A landlord cannot require a tenant to leave under Ground 1A within the first 12 months of a new tenancy.
It is possible to serve the notice before the first 12 months have passed, but the date on which possession is required cannot fall within that protected period. Depending on when the notice is served, the landlord may therefore have to provide more than four months’ notice.
For example, if the tenancy has only been running for four months, a landlord cannot simply give four months’ notice and expect possession after eight months. The tenant’s initial 12-month protection must still be respected.
This makes forward planning particularly important for landlords who believe that they may need to sell in the near future.
What Happens After the Four-Month Notice Period?
Serving notice does not automatically bring the tenancy to an end.
If the tenant leaves voluntarily when the Ground 1A notice expires, the landlord can regain possession without court proceedings.
If the tenant remains in the property, however, the landlord will normally need to apply to the court for a possession order. Government guidance makes clear that landlords cannot simply remove the tenant themselves once the notice period has expired.
Landlords should therefore avoid setting a firm completion date for a vacant property on the assumption that possession will automatically be available four months after the notice is served.
Court proceedings can add additional time to the process.
Can I Put the Property Up for Sale While the Tenant is Still Living There?
A tenanted property can be offered for sale and there may be circumstances where selling with the tenant in situ makes sense.
For example, another landlord may be prepared to purchase the property subject to the existing tenancy. This can allow rental income to continue while the transaction progresses.
However, selling to an owner-occupier is likely to require vacant possession, meaning the Ground 1A possession process may need to be completed before the sale itself can complete.
Access for photographs, estate agent valuations and viewings should also be managed carefully. The fact that a landlord intends to sell does not remove the tenant’s rights while they remain in occupation.
Think Carefully Before Serving Ground 1A
Landlords should be confident that they genuinely intend to sell before using Ground 1A.
The Renters’ Rights Act introduced a 12-month restricted period following the use of Grounds 1 and 1A. During the restricted period, landlords are generally prohibited from re-letting the property or marketing it to let, subject to limited statutory exceptions.
This matters if circumstances change.
Imagine that you regain possession because you intend to sell, but the property fails to attract a buyer or you later decide that selling is no longer financially worthwhile. You cannot necessarily change your mind and immediately place the property back on the rental market.
This is one reason landlords should consider their selling strategy, likely asking price and financial position before starting the possession process.
What If the Sale Falls Through?
A failed sale can be particularly problematic where Ground 1A has already been used.
Under the previous system, a landlord might have regained possession, attempted a sale and then returned the property to the rental market if the right buyer could not be found.
The new rules restrict that flexibility.
Re-letting or remarketing a property during the 12-month restricted period following use of Ground 1A can constitute an offence. Government enforcement guidance states that a financial penalty of up to £40,000 may be imposed as an alternative to prosecution where the rules are breached.
Landlords should therefore obtain advice before serving notice if there is any uncertainty about whether they genuinely intend to proceed with the sale.
What Happened to Section 21?
Section 21 has effectively been removed for new possession notices in the private rented sector in England.
From 1 May 2026, landlords cannot serve new Section 21 notices and instead need to rely on one of the statutory grounds for possession under the Section 8 procedure.
There were transitional arrangements for valid Section 21 and old Section 8 notices served before 1 May 2026. However, the Government confirmed that 31 July 2026 was the final date for making a new possession application based on those earlier notices. Cases that were already issued by that date can continue through the courts.
For landlords considering possession now, the new Renters’ Rights Act regime therefore needs to be followed.
Planning to Sell a Rental Property
The new rules make preparation more important.
Before taking action, landlords should consider:
- How long the current tenancy has been running
- Whether vacant possession is actually required
- Whether the property could be sold to another landlord with the tenant remaining
- When a Ground 1A notice can expire
- The four-month minimum notice period
- The possibility that court proceedings may be required
- How possession fits with the proposed marketing and completion timetable
- The consequences if the property does not sell
- The restrictions on returning the property to the rental market after Ground 1A has been used
The NRLA has similarly warned landlords that serving Ground 1A too early can remove flexibility if a proposed sale subsequently stalls or falls through.
Selling a Leasehold Rental Property
Landlords selling a leasehold flat or other leasehold investment may also have additional matters to deal with before a transaction can proceed smoothly.
These can include obtaining management information, checking service charge accounts, dealing with outstanding payments, reviewing the lease and responding to enquiries raised by the buyer’s solicitor.
Starting the conveyancing work early can help identify issues before a buyer is ready to exchange contracts.
Speak to Harrison’s Solicitors Before Selling
The Renters’ Rights Act has not removed a landlord’s ability to sell their property, but it has changed the process for obtaining vacant possession.
With Section 21 no longer available for new notices, landlords need to ensure that the correct possession ground and procedure are followed. Mistakes with notices or timing can delay a sale and may create additional legal and financial problems.
If you are considering selling a rental property, Harrison’s Solicitors can assist with the conveyancing aspects of the transaction and help ensure the legal process is handled correctly.
Our experienced property solicitors provide advice and assistance throughout residential property transactions, from preparing for the sale through to exchange and completion.
Contact Harrison’s Solicitors to discuss selling your property and the next steps involved.
This article relates to privately rented property in England and provides general information only. Individual circumstances can differ, so landlords should obtain legal advice about their particular tenancy and proposed sale.
