Updated August 2026 for the Renters’ Rights Act. You can still sell a tenanted property — but since Section 21 was abolished on 1 May 2026, how you do it has changed. You now have two routes: sell with the tenant in situ, or obtain vacant possession using the sale ground (Ground 1A). This guide explains both, the notice and penalty rules, the tax and paperwork, and how to handle viewings without falling foul of the tenant’s rights.
Last reviewed: 9 August 2026. Applies to England; Wales, Scotland and Northern Ireland differ.
Key takeaways
- You can sell with the tenancy in place (to a landlord/investor) or with vacant possession.
- There is no Section 21 — vacant possession now requires Ground 1A (sale).
- Ground 1A needs four months’ notice and the notice cannot expire in the first 12 months of the tenancy.
- After using it you cannot re-let or re-market for 12 months — breach can bring a penalty of up to £7,000, rising to £40,000.
- You keep all tenancy duties (gas, repairs, deposit) until completion, and need a valid EPC to market.
Your two routes at a glance
Sell with the tenant in situ
✓ Fast — no possession process
✓ Rent keeps coming during the sale
✓ Attractive to buy-to-let buyers
✗ Smaller buyer pool
✗ May affect the price
Sell with vacant possession (Ground 1A)
✓ Open to owner-occupiers
✓ Usually the higher price
✗ Four months’ notice minimum
✗ Not in the first 12 months
✗ 12-month re-let ban if the sale falls through
Option 1: Sell with the tenant in situ
The simplest route is to sell to another landlord or investor with the tenancy continuing. The buyer steps in as the new landlord and inherits the periodic assured tenancy, the protected deposit and all the obligations — so there’s no possession process and no void. It suits a reliable, settled tenant and a buyer who wants immediate income.
To make the sale run smoothly, get your paperwork together for the buyer’s solicitor: the tenancy agreement, the deposit protection certificate and prescribed information, the gas safety record, the EICR, the EPC, and a clean rent statement. On completion the deposit is transferred to the buyer, who must re-protect it and serve fresh prescribed information. The main trade-off is reach: a tenanted sale appeals to investors, not owner-occupiers, which narrows the buyer pool and can shave the price — though a good tenant and yield can also be a selling point.
Option 2: Sell with vacant possession (Ground 1A)
If you need the property empty, you must rely on Ground 1A, the mandatory possession ground for selling. The rules are strict and worth getting exactly right:
- Four months’ notice via a Section 8 notice on Ground 1A.
- The notice cannot expire within the first 12 months of the tenancy. You can serve it earlier (from around month eight), but the possession date must fall after the tenancy’s first year.
- After using the ground you cannot re-let or re-market the property for 12 months. Breaching this can bring a council civil penalty of up to £7,000 for a first breach, rising to up to £40,000 for continued breaches — so only use Ground 1A when you are genuinely committed to selling.
- If the tenant doesn’t leave by the notice date, you apply to the court for a possession order — you can’t change the locks yourself.
See the Renters’ Rights Act landlord guide for the full grounds, and note Section 21 is no longer available. Serve the notice correctly the first time — a defective notice means starting again and losing months.
Viewings and access during the sale
Whichever route you take, the tenant’s right to quiet enjoyment continues until they leave, so you can’t march buyers through the property at will. Viewings need the tenant’s cooperation and at least 24 hours’ written notice at a reasonable time. Keep the tenant onside — a co-operative tenant who keeps the place presentable is worth far more than a forced schedule — and consider a small “thank you” or flexibility on the check-out. Where an estate agent is handling viewings, a key safe lets them in on a code you control, so you’re not posting keys or attending every appointment.
Police Preferred Specification and the model most agents already use — lets viewers in on a code you set and change. Add it to your basket now and fit it before viewings start.
Tax, EPC and the paperwork
- Capital gains tax. Selling a rental usually triggers CGT on the gain — currently 18% (basic rate) or 24% (higher rate) on residential property, after the £3,000 annual exempt amount. If you ever lived in the property, Private Residence Relief may reduce it. You must report and pay within 60 days of completion — take tax advice early.
- EPC. You need a valid Energy Performance Certificate to market the property for sale, just as you do to let it.
- Keep complying. Until completion you remain the landlord — gas safety, repairs and the deposit rules all still apply.
Which route is best?
Selling in situ is faster, keeps rent coming, avoids any possession process and appeals to buy-to-let buyers — but the buyer pool is smaller and the price may be keener. Selling with vacant possession opens the property to owner-occupiers and usually the higher price, but takes at least four months, can’t be started in the first year, and carries the 12-month re-let restriction. Weigh the tenant’s reliability, your timescale, the local buyer market, and how confident you are the sale will complete.
Common mistakes to avoid
- Assuming you can still use Section 21. It’s gone — vacant possession means Ground 1A.
- Serving Ground 1A too early in the tenancy so the notice expires inside the protected first 12 months.
- Re-letting after a failed sale within the 12-month window — a costly penalty.
- Forcing viewings without proper notice, which risks a harassment complaint.
- Forgetting the 60-day CGT report after completion.
Frequently asked questions
Can I sell my rental with a tenant still living there?
Yes. You can sell with the tenant in situ — the buyer becomes the new landlord and inherits the tenancy and deposit — or obtain vacant possession first using Ground 1A.
How much notice must I give to sell with vacant possession?
Four months, via a Section 8 notice on Ground 1A, and the notice cannot expire within the first 12 months of the tenancy.
Can I still use Section 21 to sell?
No. Section 21 was abolished on 1 May 2026; selling now requires Ground 1A or a sale with the tenant in place.
What happens if my sale falls through after serving Ground 1A?
You cannot re-let or re-market the property for 12 months. Breaching that can bring a council penalty of up to £7,000, rising to £40,000 for continued breaches — so only use Ground 1A when you’re committed to selling.
Do I pay capital gains tax when I sell a rental?
Usually yes, on the gain — 18% or 24% for residential property after the £3,000 allowance, with Private Residence Relief if you ever lived there. You must report and pay within 60 days of completion, so take tax advice early.
Written by the Landlords Portal team — experienced UK landlords covering the private rented sector. This article is general information, not legal or tax advice; take professional advice before serving a notice or selling.
