The Renters’ Rights Act has changed the ground rules for every private landlord in England, and the changes bite hardest at the moment you decide to sell. The old route of serving a Section 21 notice, waiting two months and marketing the property empty has gone. In its place is a set of specific grounds for possession, longer notice periods, and restrictions on what you can do with the property afterwards. If you’re planning to sell a tenanted property in 2027, you need to know how the new framework works, what it means for your timescale, and whether it’s worth seeking possession at all. This guide covers the position for landlords in England, where the Act applies.
What Changed For Landlords Who Want To Sell
Section 21 Has Gone
No-fault evictions are no longer available. You can’t end a tenancy simply because you’d like the property back. Every possession claim now has to rely on a specific ground set out in the legislation, and you have to prove that ground if the tenant challenges it.
All Tenancies Are Periodic
Fixed terms have been abolished for new and existing assured tenancies. Every tenancy rolls month to month, the tenant can leave with two months’ notice, and you can only end it using one of the statutory grounds.
There’s A Ground For Selling
The Act introduced a possession ground specifically for landlords who intend to sell. To use it, you must give the tenant four months’ notice, the tenancy must have been running for at least twelve months before the notice can take effect, and you must have a real intention to sell. After using the ground, you’re prohibited from re-letting or marketing the property for rent for twelve months, which prevents the ground being used as a back door to eviction.
The Wider Framework
Landlords must register on the Private Rented Sector Database, join the landlord ombudsman scheme, and comply with the Decent Homes Standard. Rent increases are limited to once a year through the statutory process. None of these directly affect a sale, but a buyer purchasing with tenants in place will want to see that you’ve complied, because they inherit the obligations.
What This Means For Your Timescale
Under the old system, a landlord could reasonably expect vacant possession within three to four months of deciding to sell. Under the new one, the arithmetic is different.
- Notice period: four months minimum under the selling ground
- Tenancy age: if the tenancy is less than twelve months old, you’ll wait until it reaches that point before the notice can bite
- Court process: if the tenant doesn’t leave when the notice expires, you’ll need a possession order, and court timescales in many areas run to several months
- Bailiffs: if the tenant still doesn’t leave, enforcement adds further weeks
A realistic estimate for vacant possession, where the tenant contests, is now eight to twelve months from serving notice. Add the time to market and sell the empty property, and you could be well over a year from decision to completion, paying the mortgage throughout with no rent coming in for much of it.
Is Vacant Possession Worth It?
For some landlords, yes. A property that’ll sell to an owner-occupier at full market value may justify the wait, particularly if the tenant is likely to leave voluntarily when notice is served. Many tenants do, once they know the property is being sold.
For many others, the sums don’t work. Twelve months of mortgage payments, council tax once the tenant leaves, insurance on an empty property, and the legal costs of possession proceedings can add up to more than the difference between a vacant sale and a tenanted one. There’s also the risk that the tenant challenges the ground and the court finds you haven’t shown a genuine intention to sell, which sends you back to the start.
Selling With The Tenant In Place
The alternative is to sell the property as a going concern, with the tenancy continuing. The buyer becomes the landlord on completion, the tenant’s rights and agreement carry over unchanged, and you avoid the possession process entirely.
This route has always existed, but the Act has made it far more attractive. Buyers of tenanted property fall into two groups: investors who want the rental income, and cash buying companies that purchase tenanted stock and manage it or sell it on. Both will want to see that the tenancy is compliant, which means:
- A written tenancy agreement, or a clear record of the terms
- Deposit protection certificate and prescribed information
- Current gas safety certificate, electrical safety report and EPC
- Evidence of Private Rented Sector Database registration
- Right to rent checks
- A rent schedule showing payment history and any arrears
- Records of any repair requests and how they were handled
Gaps in this paperwork reduce the price, because the buyer inherits any liability for them. If you’re behind on any of it, fix what you can before marketing.
If you’re weighing up selling a tenanted property under the new rules against a year of possession proceedings, we’ll buy it with the tenant in situ. We review the tenancy paperwork alongside the title, make an offer within 24 hours, and cover the survey, the legal fees and the EPC. Our offers fall between 70% and 85% of market value, we buy throughout England and Wales, and the tenant’s position is unaffected: they keep their home, their agreement and their rights, with us as the new landlord from completion.
Practical Steps Before You Decide
Whichever route you take, start with these.
- Check when the tenancy began, because the twelve-month rule affects when a selling-ground notice can take effect.
- Speak to the tenant. Some will leave voluntarily on reasonable notice, some will want to stay, and knowing which saves you months of guessing.
- Gather the compliance paperwork listed above and fill any gaps.
- Get a realistic valuation for both a vacant sale and a tenanted sale, and set the difference against the holding costs of waiting.
- Take advice on the selling ground before serving notice, because a defective notice restarts the clock.
FAQs
Can I still evict a tenant to sell my property?
Yes, using the selling ground introduced by the Renters’ Rights Act. You must give four months’ notice, the tenancy must be at least twelve months old, and you can’t re-let the property for twelve months afterwards.
How long does it take to get vacant possession under the Renters’ Rights Act?
Four months’ notice at minimum, plus court and enforcement time if the tenant doesn’t leave. Where the tenant contests, eight to twelve months is a realistic estimate.
Can I sell a rental property with the tenant still living there?
Yes. The tenancy transfers to the buyer, who becomes the landlord. Investors and cash buying companies purchase tenanted properties routinely, and the tenant’s rights are unchanged.
Does the Renters’ Rights Act apply in Wales and Scotland?
No. It applies in England. Wales and Scotland have their own tenancy legislation with different rules on ending tenancies.
What happens if I use the selling ground and then don’t sell?
You’re prohibited from re-letting for twelve months after using the ground, and a tenant who believes the ground was misused can seek compensation. The intention to sell must be genuine and provable.
Will a buyer pay less for a tenanted property?
Usually, because the buyer can’t occupy the property and takes on the landlord obligations. The gap is often smaller than the cost of waiting a year for vacant possession, which is why many landlords now sell tenanted.