If you own a rental property and want to sell, you have two fundamental choices: sell with the tenants still in residence, or obtain vacant possession first. Both routes are legitimate and available to you — but the rules governing how you achieve vacant possession changed significantly in May 2026. This guide explains what has changed, what your options are, and how to sell with minimum delay and maximum certainty.
Important update — May 2026: Section 21 (no-fault evictions) was abolished on 1 May 2026 under the Renters' Rights Act 2025. All residential tenancies in England are now periodic from this date. If you are planning to sell and need vacant possession, you must use the new grounds-based process. This guide reflects the current law.

Your Two Core Options

Sell With Tenants In Situ
  • No notice period required
  • Rental income continues until completion
  • Buyer market limited to investors
  • Typically 10–20% below vacant value
  • Cash buyer can complete in 2–4 weeks
Sell With Vacant Possession
  • 4 months minimum notice (Ground 1A)
  • Cannot use within first 12 months of tenancy
  • Wider buyer market including owner-occupiers
  • Higher sale price achievable
  • Timeline typically 5–8 months total

Selling With Tenants In Situ: How It Works

You can sell your property at any point during a tenancy without giving any notice to your tenants. The tenancy agreement — including all its terms, the rent level, and the tenant's rights — transfers automatically to the new owner on completion. The buyer steps in as the new landlord from day one.

This is a perfectly legal and common transaction, particularly among property investors who are actively looking for tenanted properties delivering an immediate rental income. The appeal for a buyer is that there is no void period — rental income starts from completion day.

Your Obligations to Tenants During a Sale
Regardless of whether you are selling with or without tenants, you must give reasonable notice before viewings — typically 24 hours in writing — and respect the tenant's legal right to quiet enjoyment of the property. Failing to do so can create grounds for a tenant to obstruct viewings or raise complaints with the local authority.

The Renters' Rights Act and Selling With Vacant Possession

Prior to May 2026, landlords who wanted to sell with vacant possession could serve a Section 21 notice — a no-fault eviction — requiring only two months' notice. That route no longer exists.

Under the Renters' Rights Act 2025, landlords who want to sell and require the property to be vacant must use Ground 1A — a new mandatory ground for possession on the basis of intended sale. The key requirements are:

If the tenant does not leave following the notice, the landlord must apply to the court for a possession order. This can add several more months to the timeline.

Do not serve notice prematurely: The 3-month re-letting restriction means that if you serve Ground 1A and then decide not to sell, you face serious legal and financial consequences. Only serve Ground 1A when you have a firm intention to proceed with a sale.

Does Having Tenants Affect the Sale Price?

Selling with tenants in situ typically results in a lower sale price than selling vacant — often in the range of 10 to 20% below what an equivalent vacant property would achieve. This discount exists because the buyer pool narrows considerably: owner-occupiers are excluded, and most investor buyers factor in the risk and cost of eventual re-letting.

However, the calculation is not always straightforward. If obtaining vacant possession would require a 4-month notice period, several months of void, and potential legal proceedings, the total cost of that route — in lost rental income, legal fees, and delayed sale proceeds — can easily exceed the discount from selling in situ.

A cash buyer who specialises in tenanted properties will assess the rental income, the tenancy terms, and the condition of the property to arrive at a fair offer. For many landlords, the certainty and speed of a cash sale in situ outweighs the premium of a vacant sale.

What to Tell Your Tenants

You are not legally required to inform tenants that you intend to sell. However, there are strong practical reasons to be transparent. Tenants who feel blindsided are less likely to cooperate with viewings, and an uncooperative tenant can significantly extend the time it takes to complete a sale.

Where you are selling in situ, a brief, professional letter explaining that the property is being sold, that their tenancy is unaffected, and that a new landlord will simply take over the existing agreement, tends to produce the best outcome. Most tenants respond well to being treated with respect and honesty.

Why Sell to a Cash Buyer?

Selling a tenanted property on the open market through an estate agent creates several complications. Many mortgage lenders will not lend on tenanted properties, which effectively limits buyers to cash purchasers and specialist landlord mortgage holders. This narrows the buyer pool and extends timescales considerably.

A cash buyer — such as Property Offers — purchases directly with no mortgage requirement, no survey renegotiation, and no chain. We are experienced in buying tenanted properties and understand the relevant legislation. We can provide a confirmed offer within 24 hours and complete in as little as two to four weeks, with the tenancy remaining undisturbed throughout.

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Frequently Asked Questions

Can I sell my property with sitting tenants?
Yes. You can sell a tenanted property at any time. The tenancy agreement transfers to the new owner on completion. The buyer becomes the new landlord from day one, and all existing tenancy terms — including the rent level and tenant rights — remain in force.
Can I ask my tenants to leave so I can sell?
Since the abolition of Section 21 on 1 May 2026, landlords can only end a tenancy on specific grounds under the Renters' Rights Act 2025. Wanting to sell is covered by Ground 1A, which requires a minimum of 4 months' notice and cannot be used within the first 12 months of a tenancy.
Does having tenants reduce the sale price?
Selling with tenants in situ typically reduces the sale price by around 10 to 20% compared to a vacant property, because the buyer market narrows to investors. However, when the cost of obtaining vacant possession — notice periods, voids, potential legal proceedings — is factored in, many landlords find the in-situ route financially comparable or even superior.
Do I have to tell my tenants I am selling?
You are not legally required to inform tenants that you intend to sell. However, you must give reasonable notice — typically 24 hours in writing — before viewings, and you must respect their right to quiet enjoyment. Being transparent with tenants about the sale tends to produce a smoother process for all parties.
What notice do I need to give tenants to sell the property?
If you wish to sell with vacant possession under the Renters' Rights Act 2025, you must use Ground 1A. This requires a minimum of 4 months' written notice and cannot be used within the first 12 months of the tenancy. The tenant can challenge the notice if they believe the sale is not genuine, and if they do not leave, you must apply to court for a possession order.