Selling a Rented Property: How the Renters’ Rights Act Changes the Route to Vacant Possession

The Renters’ Rights Act 2025 has changed how landlords in England recover possession of their properties. Its main tenancy reforms came into force on 1 May 2026. For landlords who want to sell, the most significant change is the abolition of Section 21 “no-fault” notices. This article explains what that means for a landlord selling a let property, and for anyone buying one, as of October 2026.

What has changed?

Since 1 May 2026, Section 21 notices can no longer be used, and assured shorthold tenancies have been replaced by assured periodic tenancies. A landlord who wants to sell with vacant possession must now serve a notice under Section 8 of the Housing Act 1988. The notice must rely on a new mandatory ground, known as Ground 1A (sale of the property).

What does Ground 1A require?

• A genuine intention to sell. The landlord must be able to show this. Keeping records such as estate agent instructions, property particulars and solicitor correspondence is sensible.
• At least four months’ notice.
• A protected first year. Ground 1A cannot be used to require a tenant to leave within the first 12 months of a tenancy, so the date given in the notice cannot fall within that period.
• A court order if the tenant does not leave. The landlord must apply to the court, and court delays can add significant time.

Some older types of tenancy are treated differently, so the history of the tenancy matters.

What are landlords prevented from doing afterwards?

Once a landlord has relied on Ground 1A, the Act imposes a “restricted period”. During it, the landlord must not re-let the property or grant a paid licence to occupy it. Nor may anyone market it to let, which includes advertising that it is or may be available, or authorising someone else to do so. In broad terms, the restricted period starts when the notice is served and ends 12 months after the notice period expires. In a typical case that is around 16 months in total. Breaching these rules can lead to significant financial penalties.

There are limited exceptions. One example is where a buyer who has agreed to purchase is allowed to occupy under a licence in anticipation of the purchase. This matters if a sale falls through. A landlord who recovers possession to sell cannot simply re-let the property if no buyer is found.

What does this mean for a sale?

Landlords could once serve notice and market a property in the expectation that it would be empty by completion. That certainty has gone. A property can still be marketed for sale during the notice period, but nobody should promise a buyer vacant possession until it has actually been secured.

In practice, landlords have two main options:

• Recover possession first, then sell. This gives greater certainty but may mean a void period and a longer overall timetable.
• Sell with the tenant in place. This can suit investor buyers, who receive rent from day one. The pool of buyers is smaller, so pricing and marketing need to reflect that.

If you are buying a let property

Make sure the contract is clear about the tenancy: whether vacant possession is being offered, and what happens if it is not delivered on the completion date. Lenders can also have specific requirements for let properties, so it is worth raising this early.

How can KTS Legal help?

At KTS Legal, our team advises on residential conveyancing, including the sale and purchase of let properties. We also assist with possession claims and landlord and tenant disputes. If you are thinking of selling a let property, we encourage you to speak to us before serving any notice, so that we can advise on the correct ground, the timing and the terms of the sale contract.

To discuss your situation, please call us on 020 8367 0505 or email info@ktslegal.com.