Selling a House with Tenants In Situ

Introduction: Everything Changed on 1 May 2026

If you are a landlord selling a tenanted property in England in 2026, the single most important thing you need to understand is that the legal landscape shifted fundamentally on 1 May 2026. Section 21, the no-fault eviction notice that allowed landlords to recover possession of their property without giving a reason, was abolished on that date under the Renters' Rights Act 2025.

This does not mean you cannot sell. It does not mean you are trapped with a sitting tenant forever. But it does mean the route to recovering possession before a sale, if that is what you want, has changed completely. And it means that selling with tenants in situ, which was always a valid option, is now worth considering more carefully than before.

This guide explains everything sellers of tenanted properties in England need to know in 2026. It covers what Section 21 was, what replaced it, how Ground 1A works for landlords who want to sell, what selling with tenants in situ actually means for buyers, and how to navigate the whole process whether you want possession before selling or prefer to sell with the tenancy in place.

If you are also thinking about what your property is worth in the current market before making any decisions, use the free Valuation Calculator on YooSell to get a data-driven estimate of your property's current market value.

What Section 21 Was and Why It Mattered to Sellers

To understand what has changed, it helps to understand what Section 21 was and why landlords selling property relied on it so heavily.

What Section 21 Was

Section 21 of the Housing Act 1988 allowed landlords in England to end an assured shorthold tenancy without providing any reason. The landlord simply served a notice giving the tenant two months to leave. If the tenant did not leave, the landlord could apply to court for a possession order under an accelerated procedure that was typically faster than other possession routes. It was called a no-fault eviction because no fault on the tenant's part was required. The landlord could simply decide they wanted the property back.

Why Landlords Selling Relied on It

For landlords who wanted to sell their property with vacant possession, Section 21 was the standard route. Vacant possession means the property is empty when the buyer completes. Most owner-occupier buyers will not purchase a property with a sitting tenant. Mortgage lenders for residential buyers also typically require vacant possession. Section 21 gave landlords a clear, predictable route to empty the property before selling, with a defined notice period and a relatively efficient court process if the tenant refused to leave.

When Section 21 Was Abolished

Section 21 was abolished in England from 1 May 2026 under the Renters' Rights Act 2025. From that date, landlords in England can no longer serve a Section 21 notice. All existing assured shorthold tenancies automatically converted to assured periodic tenancies on that date. The no-fault eviction route no longer exists.

If a valid Section 21 notice was served before 1 May 2026 and proceedings were issued by 31 July 2026, those pre-existing cases could continue under the old rules. For any landlord who has not already served notice and begun proceedings, Section 21 is no longer available.

What Replaced Section 21: Ground 1A and the New Possession Framework

Section 21 has been replaced by an expanded and revised set of possession grounds under Section 8 of the Housing Act 1988, as amended by the Renters' Rights Act 2025. Landlords who want possession of their property must now rely on a specific statutory ground and follow the Section 8 procedure.

The Key Change: Grounds-Based Possession Only

Under the new system, every possession claim in the private rented sector in England must specify the ground or grounds being relied upon. The court assesses whether the ground is made out and whether it is appropriate to order possession. For some grounds, possession is mandatory if the criteria are met. For others, it is discretionary and the court can weigh the circumstances.

Ground 1A: Possession for Sale

Ground 1A is a new mandatory ground introduced specifically by the Renters' Rights Act 2025 for landlords who want to sell their property and need possession to do so.

What Ground 1A Requires

To rely on Ground 1A, a landlord must meet the following conditions:

• The tenancy must have been running for at least twelve months before the notice expires. This means you cannot serve Ground 1A in the first twelve months of a tenancy. If your tenancy is relatively new, you need to factor this waiting period into your planning.

• You must give the tenant four months' notice. This is significantly longer than the two months' notice required under the old Section 21 regime.

• The property cannot be re-let for twelve months after possession is granted. If you obtain possession under Ground 1A and then decide not to sell and re-let the property instead, you are in breach of the ground and could face a fine of up to forty thousand pounds.

• The ground must be genuine. You must genuinely intend to sell. Misusing Ground 1A to end a tenancy without following through with a sale is treated seriously by the legislation and carries significant financial penalties.

Ground 1A Is Mandatory

If the conditions of Ground 1A are met, possession is mandatory. This means the court must grant the possession order if the evidence shows the criteria are satisfied. The judge does not have discretion to refuse based on the tenant's circumstances.

Notice Periods Under the Renters' Rights Act

Notice periods under the new framework vary by ground. The key periods sellers need to know are:

• Ground 1A (selling): four months' notice

• Ground 1 (landlord or family member moving in): four months' notice

• Ground 8 (serious rent arrears of three or more months): two months' notice

• Ground 14 (anti-social behaviour): notice can expire the same day in serious cases

The Reality of Court Timelines

Even with a mandatory ground and valid notice, landlords who need to go to court should plan for the process to take considerably longer than the notice period alone. Court backlogs in the possession system were already significant before the Renters' Rights Act came into force, and the transition to a fully grounds-based system is expected to increase court demand further.

From serving the notice to receiving a possession order, landlords should plan for a realistic timeline of five to nine months in many areas. From possession order to the tenant actually vacating, further time may be needed depending on whether a warrant for possession is required. Building this timeline into your sale planning is essential.

Your Two Main Options When Selling a Tenanted Property

If you own a tenanted property and want to sell it, you have two distinct routes. Understanding both helps you choose the approach that suits your circumstances.

Option One: Sell with Vacant Possession

Selling with vacant possession means the property is empty when the buyer completes. This is what most owner-occupier buyers require and what residential mortgage lenders typically expect.

What You Need to Do

Under the new 2026 framework, recovering possession before selling requires you to:

• Confirm the tenancy has been running for at least twelve months before your Ground 1A notice period expires

• Serve a valid Section 8 notice citing Ground 1A with four months' notice

• If the tenant does not vacate at the end of the notice period, apply to court for a possession order

• Wait for the court process to conclude and, if necessary, enforce the possession order

• Only then can you list the property for sale with vacant possession or accept an offer from a buyer who needs vacant possession

This route gives you the broadest possible buyer pool, including owner-occupiers, buyers using standard residential mortgages, and first-time buyers. The trade-off is the time required.

The Risk of Delay

If your plan is to serve Ground 1A notice, wait for possession, and then sell, the entire process from serving notice to completing a sale with a buyer could realistically take twelve to eighteen months in 2026. This is a significant consideration if you need to realise the capital quickly or if market conditions are moving during that time.

Option Two: Sell with Tenants in Situ

Selling with tenants in situ means selling the property with the tenancy continuing. The buyer purchases the property as an investment and the tenant remains in occupation on the same terms as before. The buyer steps into your position as landlord, with all the obligations and rights that go with that.

Who Buys a Tenanted Property

Buyers of tenanted properties are typically:

• Experienced buy-to-let investors who understand tenancy obligations and value the rental income from day one

• Portfolio landlords looking to add an income-producing asset without a void period

• Property investors who specifically seek tenanted properties because they remove the risk of finding a new tenant after purchase

Owner-occupiers and first-time buyers using standard residential mortgages will almost never purchase a property with a sitting tenant, because they need vacant possession to occupy or to satisfy their lender's requirements.

The Financial Implications

Tenanted properties typically sell at a discount to their vacant possession value. The size of the discount depends on the rental income relative to the property value, the quality and history of the tenancy, and how active the local investor market is. In 2026, with Ground 1A creating a longer and more structured process for recovering possession, investors' appetite for tenanted stock has increased in some markets.

Use the free Mortgage Calculator on YooSell to help investor buyers understand their financing position on your property, which can support their decision to commit to a tenanted purchase at your asking price.

Selling with Tenants in Situ: What Buyers and Their Solicitors Will Check

If you choose to sell with tenants in situ, buyers and their solicitors will carry out specific due diligence on the tenancy. Being prepared for this significantly reduces the risk of delays or the sale collapsing.

The Tenancy Agreement

The buyer's solicitor will want to review the current tenancy agreement. This includes the original agreement and any renewals or variations. They will check the terms of the tenancy, the rent payable, when it was granted, and any special conditions.

Under the Renters' Rights Act 2025, all tenancies that were assured shorthold tenancies on 1 May 2026 automatically converted to assured periodic tenancies on that date. Your tenancy agreement may still refer to it as an AST with a fixed term, but legally it now operates as a periodic tenancy. Your solicitor needs to be aware of this and should be able to confirm the current legal status of the tenancy to the buyer's solicitor.

Tenancy Deposit Protection

If you took a deposit from your tenant, you are legally required to have protected it in a government-approved tenancy deposit scheme within thirty days of receiving it. The tenant must also have been provided with the prescribed information about the scheme within the same period. Failure to protect the deposit correctly prevents you from using Section 21, which is now abolished in any case, but it also creates a separate liability under which the tenant can claim compensation of between one and three times the deposit value.

The buyer's solicitor will check whether the deposit has been correctly protected and whether the prescribed information was served. If there is any doubt, resolving this before marketing saves significant delays during conveyancing.

Rent Arrears

The buyer's solicitor will ask for rent payment history to confirm whether the tenant is in arrears. Arrears affect the value of the tenancy as an investment and may indicate a dispute or difficulty with the tenancy that the buyer needs to understand before committing to the purchase.

Provide at least twelve months of rent account history. If any arrears exist, explain the circumstances and what steps you have taken to address them.

How to Rent Guide and Prescribed Documentation

At the start of a tenancy, landlords are required to provide tenants with the government's How to Rent guide. The guide must be the current version at the point of issue. Failure to provide it was one of the conditions that could invalidate a Section 21 notice under the old regime. Under the new framework, failing to meet prescribed documentation requirements can affect your ability to use certain Section 8 grounds.

The buyer's solicitor will ask whether the How to Rent guide was provided in the correct version. If you cannot confirm this, it is worth discussing with your solicitor whether this creates any ongoing risk for the buyer as the incoming landlord.

The Property's EPC Rating

The buyer's solicitor will also check the property's Energy Performance Certificate, particularly if they are buying as a landlord investor. The current minimum EPC standard for privately rented residential properties in England is band E. The minimum standard is set to rise to band C by 1 October 2030. A buyer purchasing a tenanted property needs to understand its current EPC rating and what the cost of improving it to band C might be by 2030.

If your property has a poor EPC rating, being transparent about this and providing any quotes or assessments you have obtained for improvement works gives buyers the information they need to assess the investment accurately rather than discovering it during due diligence.

Gas Safety, Electrical Safety and Insurance Documents

The buyer's solicitor will typically request:

• The current gas safety certificate, which must have been renewed annually and provided to the tenant each year

• The current electrical installation condition report, which must be renewed every five years for privately rented properties

• Buildings insurance details for the property, which will transfer to the buyer at completion

Having all of these documents filed and readily available reduces the time your solicitor spends chasing them and the time the buyer's solicitor spends waiting for responses.

The TA6 Property Information Form and Tenanted Sales

Selling a tenanted property requires particular care with the TA6 Property Information Form, which you complete as part of the conveyancing process. The TA6 is your opportunity to disclose everything material about the property, including anything relating to the tenancy, any disputes with the tenant, any enforcement action, and any notices served.

What to Disclose

The following must be disclosed accurately in the TA6 or through the conveyancing process:

• Any current or historical disputes with the tenant

• Any rent arrears or enforcement action taken

• Any notices served on the tenant, whether Section 8 grounds, formal breach notices, or any other formal communication

• Any complaints received from neighbours about the tenant

• Whether the deposit has been correctly protected and the scheme details

• Whether the How to Rent guide and other prescribed documents were served correctly

Inaccurate or incomplete disclosure in the TA6 can expose you to legal claims after completion if the buyer suffers loss as a result. Be thorough and accurate in everything you disclose.

What Happens to the Tenancy on Completion

When you sell a property with tenants in situ, the tenancy does not end on completion day. The buyer becomes the new landlord automatically on completion. The tenant's rights remain unchanged. The terms of the tenancy continue on exactly the same basis as before the sale, with the buyer stepping into your shoes as landlord.

Notifying the Tenant

You are legally required to notify your tenant in writing that the property has been sold and who the new landlord is. The buyer is also required to provide the tenant with their contact details within a reasonable period. Your solicitor will advise you on the correct process for this and may draft the notification letter as part of the conveyancing.

Transferring the Tenancy Deposit

The deposit held in the scheme must be transferred to the buyer or into their preferred scheme at completion. The mechanics of this are managed between the two solicitors as part of the completion process. Make sure the deposit scheme details are confirmed with your solicitor in advance so this step can be planned and completed without delay on completion day.

Landlord Registration Requirements

The Renters' Rights Act 2025 introduces a new landlord registration requirement in England, under which landlords must register their properties on a new national landlord database. This requirement is expected to be implemented in a later phase of the Act's rollout. The buyer, as the incoming landlord, will be responsible for registering on the database. Your solicitor should confirm the current implementation status of this requirement at the time of your sale.

Pricing a Tenanted Property Correctly

Pricing a property with tenants in situ requires a different approach from pricing a vacant possession sale. The value is determined by both the property's open market value and the investment characteristics of the tenancy.

The Vacant Possession Value

Start with an estimate of what the property would sell for on the open market with vacant possession. This is the baseline against which the tenanted value is compared.

The Rental Yield

Investor buyers will assess the property on the basis of its rental yield: the annual rent received as a percentage of the purchase price. A property generating strong rental income relative to its purchase price is more attractive to investors than one where the rent is low relative to value.

The Discount for Tenure

Tenanted properties typically sell at a discount to vacant possession value. This discount reflects the buyer's limited ability to use the property themselves and the time and cost that would be involved in recovering possession under Ground 1A if they wanted to. In 2026, with four months' notice required under Ground 1A and realistic court timelines adding further time, the typical discount for a tenanted sale in England has widened compared to the Section 21 era.

The Condition of the Tenancy

A well-maintained property with a long-standing tenant in good standing who pays on time and has no history of disputes commands a smaller discount than one with arrears, complaints, or a history of issues. Evidence of a high-quality tenancy helps justify your asking price to investor buyers.

Use the free Cost Saving Calculator on YooSell alongside your valuation research to understand your realistic net proceeds from a tenanted sale, including selling costs and likely discount compared to vacant possession value. Buy-to-let purchases are subject to the additional property surcharge of 5 percentage points above the standard SDLT rates, which affects every investor's buying calculation.

Common Mistakes Landlord Sellers Make

Understanding what goes wrong in tenanted sales helps you avoid the same problems.

Not Understanding the New Possession Framework

The most significant mistake in 2026 is assuming that the old Section 21 process still applies. Landlords who have not kept up with the Renters' Rights Act changes risk serving invalid notices, missing critical timelines, and finding themselves in a significantly worse legal position than they expected.

Starting the Process Too Late

The combination of a twelve-month minimum tenancy run before Ground 1A can be used, four months' notice, and a realistic court process of five to nine months means that landlords who want vacant possession before selling need to plan this well in advance. Starting the process only when you decide to sell is likely to mean a delay of well over a year before you can complete.

Missing Deposit Protection Requirements

A deposit that was not correctly protected, or where the prescribed information was not served on the tenant within the required period, creates a liability that will surface during the buyer's due diligence. Resolving this before marketing is far less disruptive than dealing with it mid-transaction.

Failing to Disclose Known Issues

Sellers who attempt to conceal tenant disputes, arrears, or compliance failures in the TA6 or during conveyancing expose themselves to legal claims after completion. Full disclosure, while it may affect your price, protects you from far more costly consequences.

Selling Your Tenanted Property with YooSell

YooSell is a self-service home-selling platform for homeowners and landlords in Leicestershire and the Midlands. It gives you full control of your sale from listing to completion without paying traditional estate agent commission.

Why Landlords Choose YooSell

YooSell is equally suitable for landlord sellers as it is for owner-occupiers. You set your asking price, manage viewings through a built-in booking diary, communicate directly with verified buyers including investor buyers through the platform, and access trusted conveyancers who understand the specific requirements of tenanted property sales from your seller dashboard.

See how the full process works on the How It Works page.

Verified Investors Ready to Buy Tenanted Property

Every buyer on YooSell completes identity and financial verification before they can make an offer. For landlords selling a tenanted property, this means offers you receive are from buyers who have confirmed their financial position, whether they are cash investors or portfolio landlords using specialist buy-to-let mortgage products. This reduces the risk of a sale falling through because the buyer was not prepared for the tenanted nature of the purchase.

List on Rightmove Through YooSell

You can list your tenanted property directly on Rightmove through YooSell by choosing the Enhanced or Premium plan. Rightmove reaches the widest possible pool of active property buyers including investor buyers. Visit the YooSell Rightmove page for full details on how it works.

Free Tools to Plan Your Sale

• Find a Home: browse verified listings across Leicestershire and the Midlands to understand the active buyer market

• Property Guides: in-depth guides covering conveyancing, paperwork, and every stage of selling privately

• Pricing page: review all plan options and the fixed monthly fee structure with no commission at completion

• Stamp Duty Calculator: calculate the additional property surcharge and total SDLT for buy-to-let buyers