Selling a tenanted property in 2026: What are your options?

In this post, we discuss the pros and cons of selling with a tenant in situ versus obtaining vacant possession, and explain the rules for serving a Ground 1A notice.

Selling with a tenant in situ

First, let’s look at the safer option: you sell the property with the tenant living there. The buyer becomes the new landlord and the rental agreement stays the same.

Doing so can attract investor buyers seeking immediate rental income. You don’t take such a financial risk (more on that below), and the tenant gets to remain in their home.

On the downside, this option limits your pool of potential buyers to just landlords, potentially leading to a lower sale price. Investor landlords tend to be price-sensitive and hunting for a good deal.

Selling with vacant possession

Okay, so how about selling an empty property? This means all tenants and personal belongings must be gone by the completion date of the sale.

By broadening the buyer pool to include people who want to live in the property, you can potentially drive up the sale price. But these days this approach comes with risks.

Let’s say your tenants don’t want to leave. Now that Section 21 is a thing of the past, you must instead use a Section 8 Ground 1A notice to gain possession of your property. Since 1A is a mandatory ground, the court must grant a possession order if you can prove you intend to sell. But along the way you need to follow these rules:

• Notice period – you must give the tenant at least four months’ written notice to leave
• Minimum tenancy period – you must wait until the tenant has lived in the property for long enough that the notice period expires after 12 months. For example, you can serve it eight months into a new tenancy if the notice period is four months
• Legal proceedings – if they don’t vacate the property, you need to apply to the court for a formal possession order

And – crucially – once you serve this notice to sell, you are legally restricted from re-letting or marketing the property for quite a stretch if the sale falls through. Technically the period is 12 months, but this starts from the earliest date court proceedings could have begun, effectively totalling around 16 months.

Your property could stand empty, with no rental income, while you try to find a new buyer.

Here’s more government info on grounds for possession.

The right approach for you

So far in 2026, some private landlords in England have been selling up due to worries around tighter regulations and higher taxes. This is contributing to a buyers’ market, meaning people are very price-sensitive.

At the same time, gross rental yields have increased in the last year as rents have risen more than house prices. Investors may be interested in properties as buy-to-lets if they are well priced and marketed.

With various factors at play, the best way to figure out the right approach is to work with experienced professionals who know the local market. They can help you gauge the likely demand for a tenanted property versus a vacant one in the area.

Final thoughts

Are you thinking about selling your rental property? Speak to your local Winkworth office to discuss the best strategy for your circumstances and maximise your property’s market potential.