A landlord in England who wants to sell a let property now has two routes: sell it with the tenant in place, or seek possession under the new ground for selling introduced by the Renters' Rights Act on 1 May 2026. Section 21 notices no longer exist, and the new ground comes with a notice period and restrictions that a landlord must plan around.
The question is a live one. Income tax on rental profits rises to 24%, 44% and 49% from April 2027, and Hamptons found that in June 2026, 20.3% of homes listed for sale in London had been let at some point in the previous five years.
Route one: sell with the tenant in place
Under the new system, tenancies are periodic and simply continue when a property is sold; only the landlord changes. Selling with the tenant in place avoids any need for possession and keeps the rent coming in during the sale. Hamptons also found that landlords made 10.2% of purchases in mid-2026, the first time since 2019 that landlords were buying more than they were selling, so investor buyers are in the market.
The buyer takes on the tenancy. The new landlord must notify the tenant in writing of the change and of their name and address, under section 3 of the Landlord and Tenant Act 1985, and in practice the deposit usually has to be re-protected and the prescribed information served again. A buyer who wants to live in the property would need their own ground for possession, with its own notice period.
Route two: the new ground for selling
Ground 1A of the Housing Act 1988, as amended, allows a private landlord to recover possession because they intend to sell. The key points are:
- The tenancy must have begun at least a year before possession is sought, and the notice cannot expire within the first 12 months of the tenancy.
- The landlord must give at least four months' notice.
- The ground is mandatory: if the landlord proves a genuine intention to sell, the court must order possession. Keeping evidence such as marketing material and correspondence with solicitors is sensible.
- Possession cannot be ordered if the deposit was not protected, unless it has been returned.
Shelter's guidance notes that the ground cannot be used for a tenancy that was already an assured tenancy before 1 May 2026, as opposed to one that converted from an assured shorthold tenancy on that date, so the history of each tenancy should be checked with a solicitor.
The 12-month re-letting ban
Once a notice under this ground has been served, the landlord cannot let or market the property for letting from that point until 12 months after the notice ends, even if the sale falls through. Government guidance sets penalties of up to £7,000 for relying on a ground without a reasonable belief that possession will be granted, and up to £40,000 for re-letting or re-marketing during the restricted period, and tenants can also seek rent repayment orders of up to two years' rent.
The property can be marketed for sale during the notice period. If the tenant does not leave when the notice ends, the landlord must apply to court; the Ministry of Justice put the median time from a landlord's claim to repossession at 27.1 weeks between April and June 2026.
Other points to check
- A tenant can leave first. Tenants can end a periodic tenancy with two months' notice, and an agreed departure is often quicker than the formal route.
- Higher-value lets are different. A tenancy at a rent above £100,000 a year, or one granted to a company, is not an assured tenancy under the Housing Act 1988, so its terms rather than the new grounds govern how it ends.
- Tax on the sale. Capital gains tax rates on residential property stay at 18% and 24% after the Budget; take advice on the timing of the sale against the April 2027 rise in income tax on rent.
None of this is legal or tax advice; the rules are new and each tenancy should be checked before notice is served.
Dolce Vita handles sales and lettings across the UK from Mayfair, and helps clients buy abroad through partner agencies. If you are weighing a sale with or without the tenant in place, Request a valuation; we acknowledge the same working day and return a written valuation within 24 to 48 hours.
Chris Dawson, Co-Founder
Sources: Housing Act 1988, section 1 and Schedules 1 and 2, Ground 1A (legislation.gov.uk). Shelter Legal England, "Possession when a landlord wants to sell or move in". gov.uk, "Enforcement measures for landlords: Renters' Rights Act 2025", 1 May 2026. gov.uk, "Renters' Rights Act: overview for tenants". Landlord and Tenant Act 1985, section 3 (legislation.gov.uk). Propertymark, guidance on selling rented property under the Renters' Rights Act, 8 July 2026. Goodlord, deposits when a landlord sells a tenanted property, 22 February 2023. Hamptons, "Landlord sales slow following the Renters' Rights Act", July 2026. Ministry of Justice, mortgage and landlord possession statistics, April to June 2026, 13 August 2026. HM Treasury, Budget 2026: overview of tax legislation and rates, 28 October 2026.