The private rented sector has undergone its biggest reform in decades. Following the introduction of the Renters' Rights Act, many landlords are now asking an important question:
Can I still sell my property if it has a tenant living in it?
The short answer is yes. However, the process has changed significantly, and landlords should understand the new rules before making plans to sell.
What Has Changed?
The Renters' Rights Act came into force on 1 May 2026 and introduced major changes to residential tenancies in England. Fixed-term tenancies have largely been replaced by rolling periodic tenancies, and Section 21 "no-fault" evictions have been abolished. Landlords must now rely on specific statutory grounds if they wish to recover possession of their property.
One of those grounds allows a landlord to seek possession because they intend to sell the property. However, there are important conditions attached.
Can I Ask a Tenant to Leave Because I Want to Sell?
Yes.
The Renters' Rights Act includes a possession ground specifically designed for landlords who genuinely intend to sell their property. This means that selling remains a legitimate reason for seeking possession.
However, unlike the previous Section 21 process, landlords can no longer simply serve notice without providing a reason.
The landlord must rely on the statutory "sale" ground and comply with the relevant notice requirements.
The 12-Month Restriction
One of the most significant changes is that a landlord cannot use the "sale" possession ground during the first 12 months of a tenancy. Even if a landlord decides to sell shortly after granting a tenancy, possession cannot generally be obtained under this ground until the tenant has occupied the property for at least 12 months.
This is a key consideration for buy-to-let investors and landlords who may be thinking about restructuring their property portfolios.
Selling with the Tenant in Place
It is important to remember that a property does not necessarily need to be vacant before it can be sold.
Many buy-to-let investors actively seek properties with reliable tenants already in occupation. Selling with a tenant in situ can provide an attractive investment opportunity, particularly where the tenancy is well managed and the rental income is strong.
The downside is that the potential market is usually smaller because owner-occupiers generally require vacant possession on completion.
What Does This Mean for Buyers?
Buyers purchasing a property with a tenant in occupation must carefully review:
- The tenancy agreement
- Rent payment history
- Deposit protection compliance
- Safety certificates
- Any ongoing disputes or complaints
- The tenant's rights under the new legislation
A buyer effectively steps into the shoes of the landlord and becomes bound by the existing tenancy arrangements.
Planning Ahead Is More Important Than Ever
The abolition of Section 21 means that landlords considering a future sale should plan earlier than they may have done in the past.
If vacant possession is required, landlords should:
- Review the tenancy position well in advance
- Understand whether the statutory sale ground is available
- Take advice regarding notice periods and possession procedures
- Coordinate the timing of any sale carefully
Leaving matters until a buyer has already been found could lead to delays and complications.
How a Conveyancer Can Help
Every property is different. Some sales involve straightforward vacant possession, while others require consideration of tenancy agreements, possession rights, leasehold issues, or investment purchasers.
Obtaining legal advice at an early stage can help identify potential issues before they affect a transaction.
If you are considering selling a tenanted property, taking advice before the property goes on the market may save considerable time, cost and uncertainty later in the process.
Need Advice?
If you are a landlord considering the sale of a tenanted property and would like guidance on the legal process, please feel free to get in touch. Early advice can often prevent delays and help ensure a smoother transaction for everyone involved.
