Landlords
21/02/2024
Following the introduction of the Renters’ Rights Act on the 1st May, the rules around selling your property as a landlord have changed.
Whether you want to sell your property with the tenants in place, or you had planned to sell the property once it was vacant, this comprehensive guide should give you the clear dos and don’ts when it comes to selling your property as a landlord.
We expect that this will be the preferred route for the majority of landlords looking to sell in 2026 and beyond.
One disadvantage of selling your property with your tenants in place is that you immediately reduce your pool of potential buyers to investors only. Fortunately, in West Yorkshire, we have continued to see steady interest from landlords who are looking to make investments since the Renters’ Rights Act was announced, so if you want to sell your property with a tenant in place, there should be plenty of interest from investors locally.
The process mirrors a standard property sale, except the tenancy agreement is transferred to the buyer before completion.
Your buyer will become the new landlord, your tenants stay put, and rental income continues uninterrupted. No eviction notices, no Ground 1A complexities, and no 12-month re-letting prohibition, just a straightforward investment property sale.
The main advantage of selling to another landlord with your tenants still in place is that you will receive rent right up until completion day. For a property at £800pcm, that’s £200 per week you’re not losing. If a sale takes three to four months, that’s £2,400-£3,200 you keep that would be lost in a vacant possession sale.
Now that Section 21 has been abolished, you can no longer use no-fault evictions to provide vacant possession.
Instead, under the new laws, you have to give your tenants four months’ notice and evidence of your intent to sell with a Section 8 (Ground 1A). However, under the new rules, you cannot use Ground 1A within 12 months of a new tenancy, which means that if you want to sell, you have to wait until the initial 12-month period is up.
You serve a Section 8 notice using Ground 1A (landlord intends to sell), giving four months’ notice. If your tenant leaves voluntarily after four months, you can then market and sell the property empty, but if your tenant refuses to leave, you must apply to the court for a possession order, which adds further time and costs.
Firstly, when you sell your home vacant, you can sell to anyone, from first-time buyers and families to downsizers and investors. You’ll have the largest possible market and often this also means that you’ll be able to sell your property for more.
When the property is empty, you’ll also have control over how it is presented for marketing. This could mean freshening it up with a new coat of paint, staging with neutral decor or simply advertising it empty. If you need to do some renovations before selling to get the most value, for example, fitting a new kitchen, then you can also easily complete them while it’s empty. Whatever you choose, selling the property vacant means you aren’t dependent on your tenants to keep it in great condition for viewings.