Renters’ Rights Act 2025: What Landlords Need to Know Before Selling

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Sigita Gailiusaite
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The Renters’ Rights Act 2025 is one of the biggest changes to private renting in England for decades. For landlords thinking about selling, the key message is simple: you can still sell, but you need to plan earlier, use the correct process, and keep your paperwork in order.

This guide explains the main changes landlords should understand before putting a rented property on the market. It is general information, not legal advice. For complex cases, speak to a qualified legal professional.

What is changing under the Renters’ Rights Act?

The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025 and the first major phase comes into force on 1 May 2026. From that date, the new tenancy regime will apply to both new and existing private tenancies in England.

The biggest changes for landlords are:

  • Section 21 “no fault” evictions will be abolished.
  • Most private tenancies will become assured periodic tenancies, often called rolling tenancies.
  • Landlords will need a valid legal reason, known as a possession ground, if they want to regain possession.
  • Tenants will generally be able to end their tenancy by giving 2 months’ notice.
  • Rent increases, rent in advance, rental bidding, pets and discrimination rules are also changing.

For landlords planning to sell, the most important point is this: selling remains a valid reason to regain possession, but the process will be different.

Can landlords still sell a rented property?

Yes. Landlords can still sell a rented property.

Under the new rules, landlords who intend to sell can use Ground 1A, which is the possession ground for sale of the dwelling house. GOV.UK guidance says this ground can be used where the landlord intends to sell the property, but it cannot be used within the first 12 months of a new tenancy.

That means selling is still allowed, but landlords need to think carefully about timing, evidence and the tenant’s notice period.

Section 21 is going. What replaces it when selling?

Before 1 May 2026, many landlords used Section 21 to regain possession without giving a reason. From 1 May 2026, landlords will no longer be able to use Section 21 to end an assured periodic tenancy. Instead, they will usually need to serve a Section 8 notice using a valid ground for possession.

For a sale, that valid ground is usually Ground 1A.

In practice, this means landlords should be ready to show that they genuinely intend to sell. GOV.UK gives the example that a landlord might show they have instructed an estate agent and solicitor to prove they are selling.

How much notice must landlords give before selling?

If you are using Ground 1A to sell, the notice period is 4 months. GOV.UK’s grounds for possession guidance confirms that Ground 1A is for sale of the dwelling house and carries a 4 month notice period.

This is a big planning point. If you want vacant possession before listing, exchange or completion, you need to allow enough time for:

  • serving the correct notice
  • the 4 month notice period
  • possible court action if the tenant does not leave
  • property preparation before marketing
  • the normal sales process

Do not assume you can ask the tenant to leave quickly because you want to sell.

The 12 month rule landlords must understand

Ground 1A comes with an important restriction.

To prevent misuse of the moving in and selling grounds, landlords will not be able to market or re-let their property for 12 months after using the moving or selling grounds. GOV.UK notes an exception for shared owners using Ground 1A where they can show they made a genuine attempt to sell.

The enforcement guidance goes further. From 1 May 2026, a landlord could face a financial penalty of up to £40,000 as an alternative to prosecution if they relet or remarket a property within the 12 month restricted period after using Ground 1 or Ground 1A, unless an exception applies.

So before serving notice under Ground 1A, be clear that selling is genuinely your plan.

What if the sale falls through?

This is where landlords need to be careful.

If you use Ground 1A, regain possession, then the sale collapses, you may not be able to simply put the property straight back on the rental market. The 12 month no relet and remarketing restriction may apply unless an exception applies.

That can leave a landlord with an empty property, no rent coming in, and ongoing mortgage, insurance, council tax and maintenance costs.

Before using Ground 1A, ask yourself:

  • Am I definitely selling?
  • Do I understand the likely sale price?
  • Have I checked my mortgage position?
  • Have I considered selling with the tenant in place?
  • Do I have a plan if the sale takes longer than expected?
  • Have I taken advice if the situation is complicated?

Should you sell with a tenant in place?

Selling with a tenant in place can work in some situations, especially if the buyer is another landlord or investor. It may avoid a void period and can provide continuity for the tenant.

However, it can reduce the buyer pool because some buyers want vacant possession, especially first-time buyers and owner-occupiers. It can also affect viewings, mortgage options and completion timings.

A good local agent can help you compare both options:

OptionPossible benefitPossible drawback
Sell with tenant in placeRental income continues during the saleSmaller buyer pool
Sell with vacant possessionBroader buyer appealLonger planning period and possible void costs
Keep and professionally manageRetain the asset and incomeRequires strong compliance and management

The right choice depends on your property, tenant, finances and timescale.

Check your compliance before serving notice

Possession claims can be delayed or dismissed if the process is not followed correctly. GOV.UK guidance says the court will not be able to make a possession order if the tenant’s deposit has not been protected in a government approved tenancy deposit scheme.

Before taking steps to sell, review your paperwork:

  • tenancy agreement
  • deposit protection and prescribed information
  • gas safety certificate
  • electrical safety report
  • EPC
  • How to Rent and other required documents where applicable
  • rent records
  • inspection records
  • written communications with the tenant
  • repair and maintenance records

If anything is missing, fix it before you start the process. Good paperwork protects your position and reduces the chance of avoidable delays.

Existing tenancies need attention too

For most existing tenancies that started before 1 May 2026, landlords do not need to change or reissue an existing written tenancy agreement. Instead, landlords need to give tenants a copy of the government-produced Renters’ Rights Act Information Sheet by 31 May 2026. If there is no written record of the tenancy terms, landlords may need to provide specific written information instead.

This matters because a sale is not just about marketing. Buyers, solicitors and lenders often ask for evidence that the tenancy has been managed correctly.

A practical selling checklist for landlords

Before you decide to sell, work through this checklist:

  1. Confirm your plan Decide whether you want to sell with the tenant in place or seek vacant possession first.
  2. Check the tenancy start date Ground 1A cannot usually be used within the first 12 months of a new tenancy.
  3. Review your paperwork Make sure deposit, safety and tenancy documents are complete.
  4. Get a realistic valuation Compare the likely sale price with the cost of holding the property.
  5. Understand the 4 month notice period Build this into your sale timeline from the start.
  6. Prepare evidence of intention to sell This may include estate agent instructions, solicitor correspondence and valuation records.
  7. Communicate properly Keep communication with tenants clear, calm and documented.
  8. Do not unlawfully pressure the tenant If the tenant does not leave after notice expires, you must follow the court process.
  9. Plan for delays Court times, buyer finance, surveys and chains can all affect timing.
  10. Get advice where needed

Speak to a solicitor if the tenancy, notice or sale route is not straightforward.

What this means for London and Essex landlords

For landlords in London and Essex, the new rules make planning even more important. Buyer demand can be strong, but so can tenant demand, holding costs and compliance pressure.

If your property is in Romford, Ilford, Barking, Brentwood, Basildon or the wider London and Essex area, the decision is not always simply “sell or keep”. You may have more options than you think.

Some landlords will sell. Others may decide to keep the property, improve management, and move to a more stable income model. ABC Gone supports landlords with property sales, Property Management and Guaranteed Rent across London and Essex, helping landlords reduce stress, manage compliance and make clear decisions.

Final thoughts

The Renters’ Rights Act 2025 does not stop landlords from selling. It does mean landlords need to be more prepared.

The old approach of serving Section 21 and working out the details later is coming to an end. Under the new rules, you need a valid reason, the right notice, proper evidence, and a clear plan.

If you are thinking of selling a rental property in London or Essex, get your paperwork reviewed early and take advice before serving notice. A well-planned sale is always better than a rushed one.

Need help deciding whether to sell or keep your rental property?

ABC Gone helps landlords across London and Essex with property sales, Property Management and Guaranteed Rent options.

Phone: 02085 530645
Email: info@abcgone.com
Address: 33 Station Road, Harold Wood, Romford RM3 0BS

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