In short: You have two real routes: sell with vacant possession (usually a higher price, but you must use the new mandatory “sale” ground with four months’ notice, and the tenancy must already be at least a year old) or sell as a tenanted “investment” property to another landlord (usually a lower price, but faster and lower-risk). Since 1 May 2026 you can no longer use a Section 21 notice to clear the property for sale, Ground 1A of the reformed Section 8 is now the only lawful route to vacant possession on the “I want to sell” basis. Whichever way you go, remember the 60-day Capital Gains Tax reporting and payment deadline after completion.
Two ways to sell, two different trade-offs
Selling tenanted (an “investment sale”). You market the property with the tenancy in place, selling to another landlord or investor who takes over as the new landlord on the same terms. This is quicker, no notice period, no risk of a possession claim going wrong, no void period with the mortgage or costs running, but it narrows your buyer pool to other landlords or cash investors, and buyers price in the fact that they’re taking on a sitting tenant, so tenanted sales typically achieve somewhere in the region of 10–20% less than the equivalent vacant property, depending on location, tenant quality and rent level relative to market rent.
Selling with vacant possession. You end the tenancy first, then sell to the much larger pool of owner-occupier buyers, who generally pay more. But getting to vacant possession now takes planning, time, and a specific legal ground.
If your tenant is reasonable and the rent is close to market rent, a tenanted sale can be the simpler, lower-drama option, especially if you don’t want to manage a possession process. If the price gap is large, or your buyer pool for a tenanted flat/house in your area is thin, vacant possession may be worth the extra months.
Ending a tenancy to sell: Ground 1A, not Section 21
Since Section 21 “no-fault” evictions were abolished when the Renters’ Rights Act 2025 fully commenced on 1 May 2026, landlords who want their property back to sell it must use Ground 1A, a new mandatory ground for possession built into the reformed Section 8 process. Because it’s mandatory, a court must grant possession if you satisfy the conditions, but you do need to satisfy them properly.
Key rules to know:
- Notice period: You must give the tenant at least four months’ written notice.
- Minimum tenancy age: The tenancy must have run for at least 12 months by the date the notice expires. You don’t have to wait a full year before serving the notice, you can serve it as early as around month eight, so long as the four-month notice period doesn’t expire before the tenancy’s first anniversary. In practice, that means you can’t use this ground at all in a tenancy’s first year.
- Genuine intention to sell: You must genuinely intend to sell. The Act doesn’t require the property to already be on the market when you serve notice, but you should be prepared to show evidence if challenged, instructions to an estate agent, marketing particulars, or correspondence with a solicitor or conveyancer are the kind of paper trail courts are expected to look for.
- No re-letting for 12 months: Once you’ve used Ground 1A, you’re barred from re-letting the property (or authorising anyone else to market or let it) for 12 months from the date specified in the notice as the earliest possession date, except to a qualifying family member. Break this rule and a tenant or local authority can apply for a rent repayment order of up to two years’ rent. This is a serious deterrent against using the “sale” ground as a backdoor way to get rid of a tenant you simply want to replace.
Practically, this means: if you’re planning to sell with vacant possession, start the clock early. Four months’ notice plus the reality of court timescales if the tenant doesn’t leave voluntarily means you should be thinking in terms of six-plus months from decision to key handover, not weeks.
Being straight with your tenant about the sale
Even outside any strict legal notification duty, it’s worth treating your tenant as a stakeholder rather than an obstacle. A tenant who finds out from a “for sale” board or a surveyor knocking unannounced is far more likely to become uncooperative, refusing viewings, disputing access, or making a formal complaint, than one you’ve told directly and reassured about process (whether that’s a tenanted sale where nothing changes for them day-to-day, or a vacant-possession sale where you’ve explained the timeline honestly). You still need proper notice for viewings under the general law of quiet enjoyment, you can’t just turn up with buyers, so factor reasonable, advance-notice access into how you run the sale, and put it in writing.
If you’re selling tenanted, your tenant doesn’t need to do anything differently, and there’s a good argument for telling them early and calmly precisely because it keeps the tenancy stable (and therefore the sale attractive) rather than triggering a dispute that scares off investor buyers.
The tax clock: 60 days, not your normal tax return
Regardless of route, if the property is not your main residence, selling it is very likely to trigger Capital Gains Tax. Since 27 October 2021, UK residents have had to report and pay any CGT due within 60 days of completion, this is a separate, faster obligation than your annual Self Assessment return, and it catches people out. For the 2026/27 tax year, residential property gains above the £3,000 annual exempt amount are taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, based on your total income including the gain. Missing the 60-day window can trigger automatic penalties and interest, so get your completion statement, purchase costs, and any allowable improvement costs organised well before exchange, not after.
The bottom line
Selling up is now a more procedural decision than an emotional one. Tenanted sales trade price for speed and certainty; vacant-possession sales trade time and paperwork for a bigger buyer pool and usually a better price. Whichever you choose, the discipline that matters most is starting early, on notice periods, on evidence of intent to sell, and on your 60-day tax clock, so the process runs on your timeline rather than the court’s or HMRC’s.
Related reading
Sources
- Repossessing your privately rented property after 1 May 2026, GOV.UK
- Tax when you sell property: what you pay it on, GOV.UK
This is general information, not legal, tax, or financial advice. Figures and rules referenced are accurate to the best of available information as of July 2026 unless stated otherwise. Always check current guidance or consult a qualified professional before making decisions about selling or restructuring your property holdings.
Last Updated on September 21, 2026