Selling a house with tenants in England and Wales

There are two ways to sell a house with tenants in England or Wales: sell it with the tenants still living there, to a buyer who takes over as landlord, or end the tenancy lawfully first and sell it empty. The rules on ending a tenancy changed in England on 1 May 2026, when the Renters' Rights Act 2025 abolished section 21 "no-fault" notices for private landlords. Wales has its own system under the Renting Homes (Wales) Act 2016. This guide explains both routes, the notice you need to give, what happens to the deposit, and how each choice affects the price.

It's general information, not legal advice. Getting a notice wrong can set you back months, so check the details with a solicitor, a letting agent you trust, or a landlord association before you serve anything.

What changed in England in May 2026

The first stage of the Renters' Rights Act came into force on 1 May 2026, for both new and existing private tenancies:

• Section 21 has gone. Landlords can no longer end a tenancy without a reason.
• Fixed terms have gone. Existing fixed-term tenancies became rolling (periodic) tenancies.
• Tenants can leave with 2 months' notice at any time.
• Landlords need a legal reason (a "ground") to end a tenancy, using a section 8 notice. There's a specific ground for selling: ground 1A.

More changes are coming. A database of private landlords starts rolling out from late 2026, and landlords will need to register on it. The government says registration will be needed before using certain possession grounds, so check what applies at the time you serve notice.

Option 1: sell with the tenants in place

You don't have to end a tenancy to sell. If you sell with tenants in place:

• The tenancy carries on. The buyer becomes the new landlord. Shelter says the rent and other terms stay the same, and the tenants don't have to sign a new agreement.
• The buyer must introduce themselves. In England, the new owner must give the tenants their name and address within 2 months of buying. In Wales, the contract-holder must be told about the change of landlord within 14 days.
• The deposit moves with the house. The sale contract usually passes the deposit to the buyer, who must keep it protected in one of the government-approved schemes and tell the tenants which one.

Who buys tenanted homes? Mostly investors and landlords who want the rental income from day one. That smaller pool of buyers is why a tenanted house often sells for less than the same house empty. Buyers using a mortgage will need a buy-to-let mortgage.

What helps a tenanted sale: tenants who pay on time, a rent at a fair market level, a long, clean record of paperwork, and a property in good repair.

Option 2: get vacant possession in England

If you want to sell the house empty, to reach owner-occupiers as well as investors, you need the tenants to leave lawfully. Under ground 1A:

1. You must genuinely intend to sell. A judge will want evidence, such as instructions to an agent.
2. Serve a section 8 notice citing ground 1A, giving at least 4 months' notice.
3. Mind the first 12 months. The notice usually can't end within the first 12 months of the tenancy.
4. If the tenants stay after the notice ends, apply to court. Ground 1A is a mandatory ground, so the court must order possession if you prove it. Only court bailiffs or enforcement officers can then remove tenants who still don't leave.

A few traps to know about:

• Deposit problems can block you. A court can't order possession if the deposit wasn't protected properly (or returned) by the hearing.
• The re-letting ban. From the day you serve a ground 1A notice until 12 months after it ends, you can't let the property, or market it to let. Breaking this can mean fines of up to £40,000 and orders to repay up to two years' rent. If the sale then falls through, you could have an empty house for over a year.
• Older assured tenancies. Ground 1A can't be used for a tenancy that was already a fully assured (not shorthold) tenancy before 1 May 2026.

How long it takes in England

Stage	Timing
Earliest a ground 1A notice can end	12 months after the tenancy started
Notice period	At least 4 months
If the tenants stay	A court claim, a hearing and, if needed, bailiffs, which can add months
Marketing and selling the empty house	Depends on the route you choose

Because of the court stage, it's sensible to plan on the basis that vacant possession could take well over 4 months from the day you serve notice.

Many tenants will leave earlier by agreement, especially if you explain your plans early and give them time. They can end the tenancy with 2 months' notice. Never pressure tenants to go, change the locks or cut off services: it's unlawful, and a landlord's email saying they're selling isn't a legal notice.

Getting vacant possession in Wales

In Wales, tenants are called contract-holders and tenancies are occupation contracts. To end a periodic standard contract without a reason, a landlord gives a landlord's notice:

• It must give at least 6 months' notice, counted from the day after it's given.
• It can't be given in the first 6 months after the contract-holder moved in, so a new contract lasts at least a year if the contract-holder keeps to its terms.
• Older tenancies that converted to occupation contracts in December 2022 also need 6 months' notice.
• A landlord can't give notice if they haven't complied with the deposit rules or given the contract-holder a written statement of the contract.

Landlords in Wales must also be registered with Rent Smart Wales, and anyone letting or managing a property needs a licence.

Tenants in place or vacant possession: which gets you more?

	Sell with tenants in place	Sell with vacant possession
Buyers	Investors only	Investors, first-time buyers, families
Price	Often lower	Usually higher
Time before you can market it	None	At least 4 months in England, 6 in Wales, plus any court time
Rental income while you sell	Continues	Stops when the tenants leave
Risk	Smaller pool of buyers	A court case if tenants stay; the re-letting ban in England

When an estate agent is likely to get you more: if you can wait for the house to be empty, it's in good condition, and owner-occupiers are the natural buyers in your area. An empty, well-presented house usually reaches the highest price, so a quick sale won't suit you if you can wait and the price matters most.

When selling tenanted, or to a cash buyer, can make sense: if the tenants want to stay, the rent covers the costs, you'd rather not risk a court case or an empty house, or the property needs work that would put off owner-occupiers.

Cash buyers, including us, usually pay below market value. Whichever buyer you speak to, tell them about the tenancy at the start, because it affects the offer and the timescale. We make an offer within 24 hours, explain how we worked it out from recent sales nearby, pay the legal fees and let you choose the completion date. There's no obligation to accept.

Could your tenants buy it?

Before you go further, ask your tenants whether they'd like to buy the house. They already know it, there's no need for them to move out, and a sale to a sitting tenant avoids the notice and court stages entirely. They'll need a mortgage or savings, so it isn't always possible, but it's worth a conversation.

The paperwork a buyer will ask for

Get these together before you market a tenanted house:

• The tenancy agreement or written statement, and any changes since
• The deposit protection certificate and the scheme details
• A rent record, showing any arrears
• The latest gas safety record and electrical safety report
• A valid Energy Performance Certificate
• Any licences (for example, for a house in multiple occupation), and Rent Smart Wales registration in Wales
• Notices you've served, and any correspondence about repairs or complaints

Our guide to selling a rental property covers the tax side of selling, including Capital Gains Tax.