Selling a tenanted property: the complete 2026 guide
You can sell a rented property either with the tenant still in place ("tenanted", to another landlord or investor) or with vacant possession (empty, which opens it up to owner-occupiers and usually a higher price). You don't have to evict anyone to sell — the tenancy simply transfers to the new owner. Since the Renters' Rights Act 2025 (in force 1 May 2026), Section 21 "no-fault" evictions are gone, so regaining possession now means a Section 8 ground and around four months' notice.
Key takeaways
- Two ways to sell: tenanted (tenant stays, buyer is a landlord/investor, income continues) or with vacant possession (empty, usually a higher price but you must regain possession first).
- Section 21 no-fault evictions were abolished on 1 May 2026. Assured shorthold tenancies are now periodic assured tenancies, and possession is only via a Section 8 ground.
- To sell with vacant possession you'd use Ground 1A (landlord intends to sell) — at least 4 months' notice, and it can't be used in the first 12 months of a tenancy.
- When you sell tenanted, the tenancy transfers automatically to the buyer — the tenant doesn't have to leave, and the deposit must stay protected.
- A modern tenant in situ typically knocks around 20–25% off the vacant value; a true regulated "sitting tenant" (pre-1989) can mean 30–50%+.
- A buy-to-let has no Private Residence Relief, so the whole gain is subject to Capital Gains Tax (18% or 24%), reported within 60 days.
- Selling to a cash buyer lets you sell with tenants in place — keeping rent to completion, no eviction, no void — the trade-off being a price below full vacant value.
Should I sell with tenants in situ, or with vacant possession?
This is the first decision, and it shapes your price and your buyer pool. Selling tenanted means the buyer inherits a paying tenant from day one — attractive to landlords and investors, with no void period or re-letting costs — but most residential mortgage lenders won't lend to an owner-occupier on a tenanted property, so your buyers are mainly cash or buy-to-let investors, and they price for yield. Selling with vacant possession opens the door to owner-occupiers, who usually pay more, but you have to regain possession first — which means notice, a possible void with no rent, and time.
| Sell tenanted (in situ) | Sell with vacant possession |
|---|
| Buyer pool | Landlords, investors, cash buyers | Owner-occupiers + investors — widest pool |
| Price | Priced for yield, often discounted | Usually the higher price |
| Income | Rent continues to completion | Void period once the tenant leaves |
| Speed/hassle | No eviction needed; sell as-is | Must give notice and regain possession first |
What did the Renters' Rights Act 2025 change?
A great deal, and it matters directly to selling. The Act received Royal Assent on 27 October 2025 and its main reforms came into force on 1 May 2026. The headline for landlords: Section 21 "no-fault" evictions have been abolished. Fixed-term assured shorthold tenancies have become periodic assured tenancies, and you can no longer simply serve two months' notice to get a property back with no reason. To regain possession you now need a valid Section 8 ground and a court order if the tenant doesn't leave. Any old Section 21 notice served before the changeover has a limited window and can no longer be relied on for new possession claims.
Watch out for outdated advice. Plenty of guides still online — including from well-known agents — tell landlords to "serve a Section 21, two months' notice." That route no longer exists as of May 2026. If you read it anywhere, the page hasn't been updated.
How do I get vacant possession if I want to sell empty?
If you'd rather sell with vacant possession, you regain the property using Ground 1A — "the landlord intends to sell". This is a mandatory ground, but it comes with conditions: you must give the tenant at least four months' notice, and you can't use it in the first 12 months of the tenancy. If the tenant doesn't leave when the notice expires, you apply to the court for a possession order — which can add months. And you must never take matters into your own hands: changing locks or pressuring a tenant to go is an illegal eviction and a criminal offence. For many landlords, the time, the lost rent and the court risk are exactly why selling tenanted to a cash buyer is simpler.
What are my tenant's rights when I sell?
When you sell a tenanted property, the tenancy doesn't end — it transfers automatically to the new owner, who takes over as landlord on the same terms. The tenant doesn't have to move out just because ownership changes. A few duties come with that:
- The deposit stays protected. It must remain in a government-approved tenancy deposit scheme throughout and be re-registered to the new landlord, with the prescribed information re-served — getting this wrong can cost one to three times the deposit.
- Notify the tenant. The new landlord must give their name and address in writing, and rent isn't lawfully due until they do.
- Viewings need cooperation. Your tenant is entitled to at least 24 hours' written notice for access, and isn't obliged to allow buyer viewings unless the tenancy agreement provides for it — so it pays to keep them onside.
- Rent and arrears transfer to the new owner along with the tenancy.
How much does a tenant reduce the value of my property?
It depends heavily on the type of tenancy, and this is where landlords often get confused. An ordinary modern tenant on a periodic assured tenancy typically means a discount of around 20–25% to the vacant value (less in high-demand areas), because the buyer is limited to investors and prices for yield. A true regulated "sitting tenant" — someone on a protected tenancy that began before 15 January 1989 — is a different matter: they have lifetime security of tenure and a below-market "fair rent", the property is often unmortgageable, and the discount can be 30–50% or more. Don't confuse the two: most landlords selling today have an ordinary tenant, not a lifetime regulated one.
Do I pay Capital Gains Tax when I sell a buy-to-let?
Almost always, yes. Because a rental property has never been your main home, it gets no Private Residence Relief, so the whole gain since you bought it is taxable. Residential Capital Gains Tax rates are 18% (within the basic-rate band) and 24% (higher rate), with a £3,000 annual exempt amount, and you must report and pay within 60 days of completion through HMRC's UK Property service. You can reduce the gain with allowable costs — the Stamp Duty you paid on purchase, legal and agent fees, and genuine capital improvements. Many landlords selling now are doing so partly because of tax: the Section 24 restriction means mortgage interest only earns a 20% credit, squeezing higher-rate landlords hard.
Why are so many landlords selling?
You're not alone if it feels like the numbers no longer add up. The pressures stacking up on landlords include the Section 24 mortgage-interest tax change, the compliance load and loss of Section 21 under the Renters' Rights Act, the prospect of having to upgrade rentals to a higher EPC energy rating, higher mortgage rates on refinancing, and new registration and ombudsman requirements. For many, selling — tenanted, quickly, without a fight over possession — is simply the cleanest exit.
How a fast cash sale helps a landlord
This is a situation where a genuine cash buyer fits neatly. Springbok buys tenanted properties with the tenants in place, which means you keep receiving rent right up to completion, you don't have to evict anyone or wait out a void, and problem tenants or arrears become our issue, not yours. We can take a single flat or an entire portfolio in one chain-free transaction on a guaranteed completion date. The honest trade-off: like any cash sale, the price is below full open-market value, and if you can obtain vacant possession and wait, an owner-occupier sale may fetch more — but that costs time, lost rent and court risk.
| Route | What it's for | Price | Speed |
|---|
| Cash Sale™ | Sell tenanted or a whole portfolio, chain-free, on a guaranteed date. | ~80% of market value | 7–28 days |
| Fixed Price™ | Get more for the property while staying fee-free and certain. | Up to 95% of market value | 4–8 weeks |
| Fast Cash™ | Release capital quickly to exit or reinvest. | Cash advance in days | Days |
We buy with our own funds, cover the legal costs, and there's never any obligation — if selling with vacant possession on the open market is the better route for you, we'll say so. See also our guides on how genuine cash buyers work and how we buy any house.
Selling a tenanted property: key terms
- Tenanted / in situ
- Selling a property with the tenant still living in it, so the tenancy passes to the buyer.
- Vacant possession
- Selling the property empty, with no tenant, opening it up to owner-occupier buyers.
- Assured (periodic) tenancy
- The standard private tenancy since 1 May 2026, after fixed-term assured shorthold tenancies were converted by the Renters' Rights Act.
- Section 21
- The former "no-fault" eviction notice, abolished on 1 May 2026.
- Section 8 / Ground 1A
- The route to regain possession under a specified ground; Ground 1A covers a landlord who intends to sell, needing four months' notice.
- Regulated (sitting) tenant
- A tenant on a protected tenancy from before 15 January 1989, with lifetime security and a fair (below-market) rent.
- Tenancy deposit protection
- The legal requirement to keep a tenant's deposit in an approved scheme, which must continue when the property is sold.
- Section 24
- The tax rule restricting landlords' mortgage-interest relief to a 20% credit, squeezing higher-rate landlords.
- Capital Gains Tax (CGT)
- The tax on the gain when you sell a buy-to-let; no main-home relief applies, and it must be reported within 60 days.
Freephone 24/7 Call: 0800 068 4015
