What the Renters' Rights Act Actually Means If You're Thinking of Selling

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The Renters' Rights Act received Royal Assent on 27 October 2025 and its biggest changes came into force on 1 May 2026. If you own a rental property and have been wondering how this affects your options as a seller, here is a straightforward breakdown of where things stand right now not based on speculation or worst-case headlines, but on what has actually changed and what current market data is telling us.

There is a lot of noise around this legislation. Some of it is genuinely helpful, and some of it is designed to alarm. This blog aims to give you the practical picture so you can make a better decision about what to do with your property.

Before you decide anything, sit down with the actual figures. Yield, mortgage, tax position — the numbers will tell you more than the headlines will.

The Landscape Has Shifted — But Not in the Way You Might Think

A lot of landlords are making decisions based on what they have read in the news rather than what is actually happening in the market. The headlines paint a picture of mass exodus, and while there is truth to that, the fuller picture is more interesting.

According to data published in May 2026, the share of homes bought by landlords across Great Britain rose to 13.3% between January and April 2026 the highest figure since the start of 2016.¹ At the same time, a record 23% of homes bought by landlords in early 2026 had previously been let by the previous owner, up from 16% in 2025 and a five-year average of just 9.9%.¹

In short: landlords are actively selling to other landlords in significant numbers. That matters significantly if you are thinking about your exit strategy. It tells you there is an active pool of experienced buyers in the market right now, and many of them are specifically looking for tenanted properties.

The question is not just whether to sell, but how to sell and whether you actually need to empty the property first.

The legal framework has changed significantly. Understanding what your tenancy agreement now means and what it doesn't- is essential before you make any decisions.

What Has Actually Changed Under the Renters' Rights Act

Section 21 Is Gone

From 1 May 2026, landlords can no longer serve a Section 21 "no-fault" notice. The last valid Section 21 notice had to be served by 30 April 2026.² If you were counting on Section 21 to clear the property before selling, that route has now closed.

This is the change that has caused the most anxiety among landlords, and it is understandable. Section 21 was the simplest mechanism for regaining possession you served notice, gave two months, and that was broadly that, provided you had met your paperwork obligations. The new system requires more of you.

You Can Still Sell — But the Process Is Different

The Renters' Rights Act retains a landlord's right to sell their property. However, if you want vacant possession, you will now need to use the Section 8 process and demonstrate a specific legal ground for possession.³ The ground for selling exists, but it comes with stricter evidence requirements and potentially longer notice periods compared to the old Section 21 route.⁴

You will need to show genuine intent to sell. That means having the property valued, potentially instructing an agent, and being able to demonstrate to a court that the sale is real, not a mechanism to remove a tenant and then re-let to someone else.

For many landlords, that means one of two things: begin the legal process early and accept that it will take longer than it used to, or consider selling with the tenants in place. The second option is more straightforward than many landlords realise.

All Tenancies Are Now Periodic

Fixed-term assured short hold tenancies have been replaced with open-ended periodic tenancies. All existing tenancies converted to this format on 1 May 2026.³ There was no requirement to issue new tenancy agreements the conversion happened automatically but landlords were required to give tenants an information sheet explaining the changes by 31 May 2026.

For sellers, this means there are no longer fixed-term end dates to plan around. Tenants can stay in the property indefinitely unless a valid possession ground applies or they choose to leave. That changes how you need to think about the timing of any sale.

Rent Reviews Are Also Regulated

One change that sometimes gets overlooked is the restriction on rent increases. Under the new rules, rent can only be increased once per year and through a specific notice process. Landlords can no longer include rent review clauses in tenancy agreements that automatically trigger increases.³ This affects the yield calculations that investor buyers will carry out when assessing your property.

A good tenant living well in a well-kept property is exactly what an investor buyer is looking for. You don't need vacant possession to get a strong sale.

The Case for Selling With Tenants in Place

This is where it gets practical, and where some landlords have a genuinely better option than they realise.

Selling with tenants in place avoids the possession process entirely. You do not need a legal ground, you do not face potential delays through the courts, and you do not lose rental income during a void period while the property sits empty on the market.

Think about the costs of a void period. If your property rents for £1,200 a month and it takes three months to obtain possession, market the property, and complete a sale, that is £3,600 in lost income before you have even factored in legal costs, any refurbishment work, and additional marketing time. For some landlords, selling with the tenant in place at a modest discount makes better financial sense overall.

The market for tenanted properties is active right now. Professional investors and portfolio landlords are actively looking to acquire properties with reliable tenants already in place, partly because rental yields remain strong for those who understand how to operate under the new rules.⁵

Tenanted property sales have reportedly increased significantly in 2026 as more smaller landlords exit.⁶ The buyers absorbing this stock are mostly experienced investors running properties through limited company structures buyers who are not put off by an existing tenancy and in some cases actively prefer it because it means immediate rental income from day one.

If your tenant pays on time, the tenancy paperwork is in order, and the property is well-maintained, you have something that a particular type of buyer will value. The key is finding the right buyer and presenting the property correctly which is different from marketing it to an owner-occupier.

Buyers and their solicitors will ask for everything. Having your paperwork organised before you go to market saves time, reduces risk and keeps the sale on track.

What Buyers Will Want to See

Whether you sell to an investor or to an owner-occupier who intends to take possession eventually, being organised makes a significant difference. Buyers and their solicitors will ask for:

• The tenancy agreement (now an Assured Periodic Tenancy from 1 May 2026)

• Deposit protection details and the prescribed information certificate

• Gas Safety Certificate (in date — must be renewed annually)

• Electrical Installation Condition Report (EICR)

• EPC documentation (the current minimum is an E rating, though there are ongoing discussions around future requirements)

• Rental payment history showing consistent payments

• Any correspondence relating to rent increases, repairs, or complaints

• Licensing information if the property is in a licensed area or is an HMO

Having these ready and well-organised signals that the property has been managed professionally. That matters to investor buyers in particular because it reduces the due diligence risk for them and makes the conveyancing process quicker. A disorganised file of paperwork, missing certificates, or an unprotected deposit can delay a sale or reduce what a buyer is willing to pay.

If you have a block management agent or lettings agent handling the property, ask them to compile a full compliance file before you begin marketing.

The Numbers Behind the Landlord Exit

To give you some context on the wider picture:

Approximately 93,000 buy-to-let landlords exited the market in 2025.⁷ Data from the English Private Landlord Survey found that 31% of landlords planned to reduce the size of their portfolio and 16% were considering selling all their rental properties within two years.⁷

In Q1 2025, 15.6% of all new property sales instructions were previously rented homes, up sharply from 9.8% the year before.⁸

The NRLA recorded that 26% of landlords sold at least some of their rental properties in late 2024 — the highest proportion ever recorded at that time.⁸

These figures reflect genuine pressure. Rising mortgage costs, increased compliance requirements, and legislative change have all played a part. But they also highlight the volume of landlord-to-landlord activity happening right now, which creates a real opportunity for sellers who approach the process with good preparation and realistic expectations on price.

The landlords getting the best outcomes from their sales are not the ones rushing out the door they are the ones who have taken time to get their paperwork in order and understand what type of buyer their property suits.

Should You Sell or Stay?

That depends on your individual situation, and there is no universal answer that works for every landlord.

If the property is performing well a good tenant in place, solid yield, fully compliant documentation it may be worth reviewing your actual numbers before assuming that selling is the right move. Landlords who remain in the sector and have adapted to the new regime are seeing strong rental demand and record yields in some areas.⁵ The regulatory changes are manageable if your portfolio is already well-run.

If the mortgage rate on the property has significantly increased at renewal and the yield no longer stacks up, that is a more concrete reason to consider selling than legislation alone. Similarly, if you have one or two properties and the time and stress of managing them has increased to a point where it is no longer worth it to you, that is a legitimate reason to exit.

The important thing is to base the decision on your actual figures and your appetite for continuing as a landlord not on a headline. Speaking to a property professional who works specifically with landlords and investors, rather than a general estate agent, will give you a more honest read on what your property is worth in the current market and who the likely buyers are.

A Note on Timing and the 12-Month Rule

One thing worth knowing if you are planning to sell with vacant possession: under the new rules, if a tenancy converted to an Assured Periodic Tenancy on 1 May 2026, a landlord generally cannot obtain possession under Ground 1 (selling the property) before 1 May 2027 for those converted tenancies.⁴

That is a 12-month protection period built into the legislation for existing tenants. If you are planning to sell with vacant possession and your tenancy converted on that date, you will need to factor that timeline into your plans.

If selling with tenants in place is an option you are open to, that 12-month wait is entirely irrelevant. You could begin the process now and potentially have a buyer lined up well before that date even arrives.

Thinking about selling a tenanted property in Croydon or South London? Gateway Property Hub works with landlords at every stage of the process from reviewing your options and understanding the new rules, through to finding the right buyer for your specific situation. Get in touch for a straightforward conversation about where you stand.

Sources

1. Estate Agent Today / Landlord Today — Sales to investors boom as landlords buy from landlords, May 2026

2. Total Landlord Insurance / Keystone Law — Renters' Rights Act: What's happening to evictions and Section 21?, 2026

3. Cluttons — Renters' Rights Act 2025: Our Guide, updated 2025–2026

4. The Independent Landlord — Using Section 8 Grounds in the Renters' Rights Act, 2026

5. Mortgage Finance Gazette — Thousands of landlords predicted to sell up in 2026, December 2025

6. Property Investor Today — The Retiring Landlord's Fire Sale, May 2026

7. Property Investor Today / Mortgage Finance Gazette — Landlords quitting sector likely to raise rents further, December 2025

8. LandlordZONE — Why more UK landlords are leaving homes empty or selling up, January 2026