The Renters’ Rights Act 2025, which came into force on 1 May 2026, introduces major changes for landlords across England.
If you are planning on selling a rental property, the new rules around Section 8 notices, periodic tenancies and tenant protections will significantly impact how and when you can sell.
Understanding these changes early is essential to avoid delays, financial risk and missed opportunities.
Key Changes Under the Renters’ Rights Act 2025
The legislation introduces a number of important reforms to the private rented sector, including:
• The abolition of “no fault” evictions (Section 21)
• All tenancies becoming rolling periodic tenancies with no fixed term
• Rent increases limited to once per year with two months’ notice
• A ban on rent bidding above advertised rates
• Restrictions on rent in advance (maximum one month)
• A new right for tenants to request pets (subject to reasonable consideration)
• The introduction of a national landlord register
With the private rented sector accounting for approximately 19% of households in England (around 4.6 million homes), these changes will have widespread implications.
How the Renters’ Rights Act 2025 Affects Landlords Selling Property
If you are a landlord considering selling, the process will become more structured and in some cases, more restrictive.
1. You Cannot Sell Within the First 12 Months of a Tenancy
Landlords will not be able to sell a property during the first 12 months of a tenancy unless the tenant voluntarily gives notice.
2. Section 8 Ground 1A Will Replace Section 21
To regain possession for the purpose of selling, landlords must rely on Section 8 Ground 1A.
• You must give at least four months’ notice
• Notice must be served before marketing the property
• Section 21 will no longer be available
3. Notice Cannot Be Withdrawn
Once notice is served:
• You are legally committed to selling
• If the sale falls through, you may not be able to re-let the property for 12 months
This creates a significant financial risk if a transaction does not complete.
Selling With Tenants in Situ vs Vacant Possession
One of the key strategic decisions is whether to sell with tenants in place or to obtain vacant possession.
Selling With Tenants in Situ
Advantages:
• No need to serve notice
• Avoids strict legal timelines
• Rental income continues
Disadvantages:
• Smaller pool of buyers
• Typically lower sale price
• Less flexibility for viewings
Selling With Vacant Possession
Advantages:
• Attracts a wider range of buyers
• Potentially higher sale price
Disadvantages:
• Strict notice requirements
• Risk if the sale falls through
• Possible 12-month restriction on re-letting
Key Considerations Before Selling a Rental Property
Timing Is Critical
With the removal of fixed-term tenancies:
• You cannot rely on tenancy end dates
• Notice can only be served after 12 months of occupation
• Buyers may be discouraged by long notice periods
Managing the Notice Period
During the notice period, landlords may need to:
• Accommodate tenants during viewings
• Offer flexibility or incentives
• Manage potential disruption carefully
Impact on Sale Price
Properties sold with tenants in situ are often marketed to buy-to-let investors, who may expect a discounted price.
Risks of Selling Under the Renters’ Rights Act 2025
Landlords should be aware of the potential risks, including:
• Being unable to re-let for 12 months if a sale falls through
• Delays caused by extended notice periods
• Reduced buyer interest due to tenant occupation
• Legal consequences if notice requirements are not followed correctly
Seeking professional advice early can help minimise these risks.
How Timms Can Help
Selling a rental property under the Renters’ Rights Act 2025 requires careful planning, particularly when it comes to timing, notice requirements and legal compliance.
Our experienced residential conveyancing team can guide you through every stage of the process, from initial advice through to completion, ensuring your transaction runs as smoothly as possible.
If you are considering selling a rental property, please feel free to contact me on 01530 564498 or at l.bourne@timms-law.com.
Frequently Asked Questions
Can landlords still evict tenants under the Renters’ Rights Act 2025?
Yes, but only using valid Section 8 grounds, including Ground 1A for selling.
What is Section 8 Ground 1A?
It allows landlords to regain possession if they intend to sell the property, with four months’ notice.
Can I sell my rental property with tenants in situ?
Yes, but it may reduce buyer demand and impact the sale price.
How much notice do I need to give tenants when selling?
You must give at least four months’ notice under Section 8 Ground 1A.
Can I re-let my property if the sale falls through?
In many cases, you may be restricted from re-letting for 12 months.
Do tenants have to allow viewings?
Tenants should cooperate, but arrangements must be reasonable and agreed.
