the house desk

Selling a tenanted property: with the tenant in place or empty

Written for landlords. The rules in England changed on 1 May 2026, and they decide how long vacant possession now takes.

On this page
  1. Sitting tenant or vacant possession
  2. Ending a tenancy in England
  3. Wales and Scotland
  4. Regulated tenancies
  5. Flats: tenants' first refusal
  6. Deposit, licence and lender
  7. Documents a buyer asks for
  8. When a co-owner will not sell
  9. Questions people ask
  10. Which route suits

The short answer

You can sell a tenanted property with the tenant in place, usually to an investor, or end the tenancy first. In England since 1 May 2026, section 21 is gone. A landlord wanting the property back to sell must use Ground 1A, the selling ground: four months' notice, not in the tenancy's first year, and no re-letting for 12 months.21

A sitting tenant, or tenant in situ, is a tenant still living in the property when you sell.

Selling a house with a sitting tenant or with vacant possession: which is better?

Which is better depends on who will buy. With the tenant in place the rent keeps coming, but your buyers are investors who want a let property. Vacant possession means the property is empty when the sale completes. It opens the sale to owner-occupiers with mortgages, but only after the tenancy has lawfully ended.

You can still sell your house with tenants in it. The tenancy carries on and the buyer becomes the landlord.

Tenant in place against vacant possession, England, law in force on 14 September 2026
Sell with the tenant in placeGet vacant possession first
Who can buyInvestors and landlords, including cash buyers and auction biddersAnyone, including mortgage buyers who will live there
Earliest you can marketNowOnly once the tenant has left. Marketing to let again is restricted
Minimum time before possessionNot applicableFour months' notice, and not in the tenancy's first year54
Rent while you sellContinuesStops once the tenant leaves
ViewingsNeed the tenant's cooperationUnrestricted
Main riskA smaller pool of buyers pricing it as an investmentA tenant who does not leave, and a court claim

Can I evict my tenant to sell the property in England?

Yes, you can evict your tenant to sell the property, but only on a legal ground for possession, and not quickly. The Renters' Rights Act 2025 brought its tenancy reforms into force for private tenancies on 1 May 2026.1 Section 21 "no fault" notices, which let a landlord end a tenancy without giving a reason, are abolished. Existing fixed-term tenancies became periodic, meaning they now roll on with no end date.2 A landlord who wants to sell now relies on Ground 1A in Schedule 2 to the Housing Act 1988.

Ground 1A, landlord intends to sell, England, in force 14 September 2026

The ground
You intend to sell the freehold or leasehold, or grant a lease of more than 21 years4
Earliest use
The tenancy must have begun at least a year before the relevant date4
Notice
At least four months from service of the notice5
Does not cover
Tenancies deriving from the Rent Act 1977 succession rules, and certain social landlords4

The notice also starts a ban on re-letting, called the restricted period. On the minimum periods in the Housing Act 1988, The House Desk counts at least 16 months from the notice before a landlord who fails to sell can re-let.

Ground 1A from notice to the end of the re-letting ban, England

  1. Notice served The restricted period starts6 Neither you nor anyone acting for you may let the property on a tenancy of 21 years or less, or market it to let.
  2. At least 4 months later The earliest date court proceedings could begin5 Only needed if the tenant has not left.
  3. 12 months after that date The restricted period ends7 At least 16 months after the notice, adding the two periods together.
Law in force on 14 September 2026. The 16 months is plain arithmetic on the minimum periods. A longer notice pushes every later date back.

Vacant possession costs you time and rent. Allow at least four months of notice, possibly a court claim after that if the tenant stays, and then the sale itself, with no rent once the property is empty. Set that against the price difference an agent can evidence from sales of similar let and empty properties in your area.

Parts of the Act are not yet in force. The landlord database rolls out from late 2026. Mandatory membership of a landlord ombudsman is expected in 2028.3 A buyer's solicitor may ask how you will meet those duties, but they do not stop a sale today.

Ending a tenancy to sell: which rules apply

  1. England What the landlord's notice involves: Ground 1A, the ground for selling: at least four months from service of the notice.5 Ground 1A in England
  2. Wales What the landlord's notice involves: A section 173 notice on a periodic standard contract must give at least six months.8 Wales and Scotland
  3. Scotland What the landlord's notice involves: Eviction Ground 1 at the First-tier Tribunal, with 84 days' notice where the tenant has lived there more than six months.11 Wales and Scotland
  4. Northern Ireland What the landlord's notice involves: Different tenancy law again, which this guide does not cover.
Law in force on 14 September 2026.

Selling a tenanted property in Wales or Scotland

Wales

Wales has its own tenancy law, separate from the rest of the UK, under the Renting Homes (Wales) Act 2016. The England rules above do not apply there. Tenants are called contract-holders. On a periodic standard contract, one with no fixed end date, the landlord's notice under section 173 must give at least six months.8 It cannot be given in the first six months of occupation.9

Scotland

Private residential tenancies in Scotland use eviction Ground 1, landlord intends to sell. The landlord must be entitled to sell. They must also intend to sell for market value, or at least put the property up for sale, within 3 months of the tenant leaving. The First-tier Tribunal decides, and must be satisfied that an eviction order is reasonable. A letter engaging a solicitor or estate agent for the sale is the kind of evidence it expects.10 Where the tenant has lived there more than six months, the notice period is 84 days.11

Northern Ireland tenancy law is different again, and we do not cover it.

Regulated tenancies under the Rent Act 1977

A tenancy that began before 15 January 1989 may be a regulated tenancy, which gives the tenant much stronger security. Ground 1A does not apply to tenancies deriving from the Rent Act succession rules, under which a family member can take over the tenancy.4

Where none of those cases fits, the property is sold with the tenant in place, and the buyer prices in that the tenancy may last many years. Have a solicitor confirm the tenancy's status, and whether any case fits, before you plan a vacant sale or market the property.

Selling a building of flats: tenants' right of first refusal

Tenants in a building of flats can have a right of first refusal. The landlord must offer to sell to them before selling to anyone else. Part 1 of the Landlord and Tenant Act 1987 gives them that right where the building contains at least two flats and more than half are held by qualifying tenants. Before selling, you must serve an offer notice on those tenants.13

The right of first refusal is a rule for landlords of buildings and freeholds. If you own one leasehold flat and let it, whether Part 1 touches your sale depends on who counts as a qualifying tenant. Ask your conveyancer early rather than assume.

Deposit, licence and mortgage lender

The tenancy deposit

In England, a deposit for an assured periodic tenancy must be in a government-backed scheme within 30 days of the landlord receiving it.15 On a sale with the tenant in place, the deposit and its protection have to move to the buyer along with the property. Agree in the contract who transfers the money. Ask your scheme how it records a change of landlord before completion, not after.

Licences do not transfer

An HMO licence, for a house in multiple occupation, cannot be transferred to another person.16 Nor can a selective licence, the kind some councils require for private lets in their area.17 A buyer of a licensed property needs to apply for their own. Tell the buyer which licence applies and when it expires.

Your mortgage lender

A buy-to-let mortgage, or a mortgage on a home you let with your lender's consent, is repaid from the sale either way. Check your mortgage offer for early repayment charges and for any condition about the tenancy. If you plan to end the tenancy, tell the lender.

Documents a buyer will ask for

An investor buying with a tenant in place is buying the tenancy as much as the building. Having these ready means fewer questions from the buyer's solicitor:

  • the written tenancy agreement or statement of terms, and any changes since it began
  • the rent history and any arrears
  • the deposit amount, the scheme and the protection certificate15
  • evidence the government information sheet was given, for tenancies that existed before 1 May 20263
  • any HMO or selective licence16
  • the safety and energy certificates you hold for the property
  • for flats, the lease and any Landlord and Tenant Act 1987 notices served

Can you force a sale if a co-owner of the rental will not sell?

Yes, if a court agrees. Where you own the rental with someone who refuses to sell, either of you can apply for an order under section 14 of the Trusts of Land and Appointment of Trustees Act 1996. That holds whether you are joint tenants, owning the whole together, or tenants in common, each owning a share.18 The court weighs the purpose the property was bought for, the interests of any mortgage lender and the co-owners' wishes by share.19

An investment bought to let and sell later is a different case from a family home. It is still a court decision, though, so try an agreed sale or buy-out first. Where the co-owner is a spouse or civil partner you are separating from, the family court can also deal with the property as part of the divorce finances, as our guide to selling on divorce or separation explains.

Questions people ask about selling with tenants

Is it harder to sell a house with tenants in it?

Fewer buyers can proceed, so in that sense it is. With the tenant in place you are selling to investors and landlords, who price the rent rather than the home, and every viewing depends on the tenant’s cooperation. Selling it empty opens the market to mortgage buyers who want to live there, but in England that means at least four months’ notice first.

Which selling route suits a tenanted property?

With the tenant in place you are selling to investors, and all three routes reach them in different ways. With vacant possession, an estate agent reaches owner-occupiers. The tenant may also be your buyer.

Ask your tenant whether they would like to buy before you serve any notice. If they would, you skip the whole Ground 1A process in England: four months' notice, months without rent once the property is empty, and the ban on re-letting that the notice starts.

Haroon Ali Author, The House Desk. Over 11 years in property and renovation

Selling the house to your current tenant

A sale to the tenant is an ordinary sale. There is no notice, no possession ground and no vacant possession issue, because the buyer is the person already living there, and they may know the property better than any other buyer. From offer to completion the steps are those of any private sale. Our estate agents hub sets out the process whether or not an agent is involved.

Tenant in place or vacant possession, England

  • Could it be a regulated tenancy under the Rent Act 1977?
  • Yes Have a solicitor confirm its status first A tenancy that began before 15 January 1989 may be one, and Ground 1A does not apply to tenancies deriving from the Rent Act succession rules. Confirm its status before you plan a vacant sale.4 Regulated tenancies
  • No Would the property sell mainly to owner-occupiers?
  • Yes Vacant possession may be worth it Allow for at least four months' notice, possibly a court claim after that, and the ban on re-letting if it does not sell.5 Ground 1A in England
  • No Is the rent at market level and the tenant settled?
  • Yes Sell with the tenant in place You avoid months without rent and the risk of a contested claim.
  • No Weigh the routes Arrears or a problem tenancy can suit a house-buying company, at a lower price. Weigh the ways to sell

Your price through each route runs your own figure through all three.

Where a tenanted sale can go

Weighed for a landlord deciding between a let sale and an empty one.

Not sure which fits? Answer three questions and we will suggest one.

Estate agent

Best when the property will sell with vacant possession, or when the agent has an active list of local investors.

Suits
Vacant possession, or a well-let property in a strong rental area
Watch
Viewings depend on the tenant

Auction

Auction rooms draw investor buyers and suit tenanted lots, including regulated tenancies.

Suits
Tenanted lots, long-standing tenants, portfolios
Watch
Seller fees and a reserve that reflects the tenancy

House-buying company

Some buy tenanted property for their own portfolios. The sale is quicker and surer, and the price lower.

Suits
Arrears, problem tenancies, or a landlord leaving the market quickly
Watch
Who the company is, and offer reductions

The three routes are weighed in full in the ways to sell, and bidding sales in selling at auction. For a tenanted lot, how an auction reserve price works covers setting a floor that reflects the tenancy.

Find the route that fits you

Three questions, about 30 seconds. Your answers stay in your browser.

Sources

(19)

Numbers in the text link to these. Each was read on the date shown. How we research

  1. The Renters' Rights Act 2025 (Commencement No. 2 and Transitional and Saving Provisions) Regulations 2026 (SI 2026/421) legislation.gov.uk. Legislation. England. Read 14 September 2026.
  2. Guide to the Renters' Rights Act Ministry of Housing, Communities and Local Government, GOV.UK. Government guidance. England. Read 14 September 2026.
  3. Implementing the Renters' Rights Act 2025: our roadmap for reforming the private rented sector GOV.UK. Government guidance. England. Read 14 September 2026.
  4. Housing Act 1988, Schedule 2 (grounds for possession), as amended legislation.gov.uk. Legislation. England. Read 14 September 2026.
  5. Housing Act 1988, section 8 (notice of proceedings for possession), as amended legislation.gov.uk. Legislation. England. Read 14 September 2026.
  6. Housing Act 1988, section 16E (other duties) legislation.gov.uk. Legislation. England. Read 14 September 2026.
  7. Housing Act 1988, section 16M (interpretation) legislation.gov.uk. Legislation. England. Read 14 September 2026.
  8. Renting Homes (Wales) Act 2016, section 174 (minimum notice period) legislation.gov.uk. Legislation. Wales. Read 14 September 2026.
  9. Renting Homes (Wales) Act 2016, section 175 (restriction on giving notice) legislation.gov.uk. Legislation. Wales. Read 14 September 2026.
  10. Private Housing (Tenancies) (Scotland) Act 2016, Schedule 3 (eviction grounds) legislation.gov.uk. Legislation. Scotland. Read 14 September 2026.
  11. Private Housing (Tenancies) (Scotland) Act 2016, section 54 (restriction on applying during the notice period) legislation.gov.uk. Legislation. Scotland. Read 14 September 2026.
  12. Rent Act 1977, section 98 (grounds for possession of certain dwelling-houses) legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.
  13. Landlord and Tenant Act 1987, section 5 (offer notices) legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.
  14. Landlord and Tenant Act 1987, section 10A (offence of failure to comply) legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.
  15. Tenancy deposit protection GOV.UK. Government guidance. England. Read 14 September 2026.
  16. Housing Act 2004, section 68 (HMO licences: general requirements and duration) legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.
  17. Housing Act 2004, section 91 (Part 3 licences: general requirements and duration) legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.
  18. Trusts of Land and Appointment of Trustees Act 1996, section 14 legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.
  19. Trusts of Land and Appointment of Trustees Act 1996, section 15 legislation.gov.uk. Legislation. England and Wales. Read 14 September 2026.