The short answer
Yes: in England you can sell a let property with the tenant in situ, and the tenancy continues with the buyer as the new landlord. If a buyer wants vacant possession, section 21 has not been available since 1 May 2026, so you must serve a section 8 notice on Ground 1A (Form 3A) giving at least four months' notice that cannot expire within the tenancy's first 12 months, and you then cannot let or market the home to let until 12 months after the earliest court date stated in the notice.
The right route still depends on the tenancy, the buyer you hope to attract, the property’s condition, your timing and the commercial terms offered.
Before choosing an agent or agreeing a marketing strategy, separate three different situations:
- Selling with the tenant in situ — a buyer may be willing to buy an occupied rental property and take on the ongoing letting arrangement.
- Selling with vacant possession — a buyer may want the property empty at completion. This is a different objective and may affect timing, marketing and the steps that need legal review.
- Selling to the existing tenant — the tenant may be a potential buyer, but this is a separate negotiation rather than an assumption.
Key facts
- Landlords in England cannot issue section 21 notices for any tenancy from 1 May 2026, and 31 July 2026 was the last date to apply to court on a section 21 notice served before then. GOV.UK: Giving notice of possession before 1 May 2026
- Ground 1A lets a landlord seek possession to sell, with at least four months' notice, and the notice cannot expire before the tenancy's first 12 months have ended. GOV.UK: Grounds for possession guidance
- Notice is given on Form 3A, and evidence of an intention to sell can include proof that you have instructed an estate agent. GOV.UK: Repossessing your privately rented property after 1 May 2026
- Ground 1A cannot be used against an assured tenancy created before 1 May 2026 that was not an assured shorthold tenancy. GOV.UK: Grounds for possession guidance
- After relying on Ground 1A, a landlord must not let or market the property to let from the date the notice is served until 12 months after the earliest proceedings date stated in it. Housing Act 1988, s.16M
- Breaching that restriction is an offence, and councils can impose a financial penalty of up to £40,000 instead of prosecuting. Housing Act 1988, s.16K
- When a let property is sold, the new landlord must tell the tenant in writing about the sale and give their name and address by the next rent day, or within two months of the sale if that is later. Landlord and Tenant Act 1985, s.3
Who needs to think carefully about the route?
This decision matters particularly where:
- the property is occupied and the landlord needs to avoid disrupting the tenancy unnecessarily;
- the landlord wants to sell quickly but has not yet established whether likely buyers will accept an occupied property;
- the likely market includes both landlords and owner-occupiers;
- there are incomplete property, tenancy, cost or document records; or
- a buyer makes an offer subject to the property being empty.
A sale with a tenant in place can suit some buyers, while vacant possession may be important to others. Neither route is automatically better. Ask prospective agents to explain the likely audience for each approach, how they would describe the tenancy to buyers, and what assumptions sit behind any valuation.
Compare the main routes before marketing
1. Market to buyers who may accept the tenant in situ
This route may be relevant where the buyer is looking for a rental property rather than a home to occupy themselves. The practical task is to make the existing arrangement understandable: buyers will usually need a clear view of the property, the tenancy paperwork, rent history, relevant records and running costs.
Questions to ask an agent or buyer include:
- Is the buyer comfortable purchasing an occupied property?
- What tenancy and property information do they need before offering?
- Does their offer depend on any change to the tenant’s occupation?
- Who will communicate with the tenant during viewings and the sale process?
- What is the proposed timetable, and what could change it?
2. Plan for a buyer seeking vacant possession
An owner-occupier, or another buyer, may prefer the property to be empty. That preference does not mean the tenancy simply ends because the property is being sold: a buyer of a let property takes it subject to the tenancy, and the new landlord must give the tenant written notice of the sale.
In England, the route to vacant possession for a sale is now Ground 1A:
- serve notice on Form 3A giving at least four months' notice;
- the notice can be given during the first 12 months of a new tenancy, but cannot expire before those 12 months have ended;
- keep evidence of your intention to sell, such as proof that you have instructed an estate agent;
- if the tenant does not leave, you need a court order, and the ground is mandatory if you can prove it.
Ground 1A comes with a restriction that matters if a sale falls through. From the date you serve the notice until 12 months after the earliest court date stated in it, you must not let or market the property to let (Housing Act 1988, s.16M). Breaking that rule is an offence with a penalty of up to £40,000 (s.16K).
Do not promise vacant possession or a move-out date to a buyer before you know which ground applies and how long it will take. The tenancy type matters too: Ground 1A is not available against an assured tenancy created before 1 May 2026 that was not an assured shorthold tenancy. A conveyancer and a suitably qualified adviser can confirm the position before you market on that basis.
From a practical perspective, also consider the gap between serving notice and a completed sale. That gap can affect maintenance, insurance, finance and other holding arrangements, and because of the re-letting restriction you cannot simply re-let if the buyer withdraws.
3. Discuss a sale with the current tenant
The existing tenant may be interested in buying, but this is not guaranteed. If you explore the idea, keep the conversation clear and respectful: establish whether there is genuine interest, avoid pressuring the tenant, and obtain appropriate professional advice before relying on an informal discussion.
A tenant purchase can still require a valuation, finance, conveyancing and an agreed timetable. It should be assessed alongside—not confused with—the options of selling to an investor or marketing more widely.
Information to organise before speaking to agents or buyers
Good records will not decide which route is best, but they can make conversations more accurate and reduce last-minute uncertainty. Prepare a simple sale file containing the following.
Property information
- property address and basic description;
- ownership and mortgage information to discuss with your conveyancer or lender where relevant;
- a record of improvements, repairs, maintenance issues and known defects;
- current insurance and service arrangements; and
- information on any managing agent, freeholder or other party involved with the property, where applicable.
Tenancy information
- the current tenancy agreement and any variations;
- tenant contact details held and used appropriately;
- rent amount, payment dates and a clear rent-payment record;
- correspondence relevant to the tenancy; and
- a note of any arrangements that could affect access, viewings or a proposed completion timetable.
Avoid giving buyers or agents more personal tenant information than is necessary. Ask your adviser how information should be shared securely and lawfully during marketing and conveyancing.
Costs and performance information
- recent rent received;
- repairs, maintenance and improvement spending;
- insurance, finance and other regular property costs;
- invoices and receipts that support significant expenditure; and
- a concise timeline of major works or issues.
This is useful for your own comparison of options as well as for answering proportionate buyer questions. It can also help you distinguish an attractive headline offer from the wider costs, work and timing attached to that route.
Documents and compliance records
Gather the documents you already hold that relate to the property and tenancy, then ask a conveyancer or appropriate property professional which documents will be needed for your proposed sale. Do not assume a document is current or sufficient simply because it is on file.
If the buyer will take over the tenancy, include evidence of the Right to Rent checks you carried out and any follow-up dates. The Home Office code recommends that a buyer with sitting occupiers asks the previous landlord for exactly this.
A sensible sequence for deciding what to do
- Clarify your objective. Is your priority speed, sale price, a particular completion date, minimising disruption, or a combination?
- Establish the tenancy position. Check when the tenancy started, whether the first 12 months have passed, and whether Ground 1A is available (it is not for assured tenancies created before 1 May 2026 that were not assured shorthold tenancies). Take advice before promising vacant possession.
- Prepare a consistent information pack. Make sure the records you give agents and buyers are accurate, dated and easy to check.
- Request route-specific advice. Ask agents how they would market the property with the tenant in place and, separately, what would be required if a buyer wanted it vacant.
- Compare terms, not just valuations. Look at buyer conditions, proposed timing, fees, responsibilities, evidence of funding and any assumptions about occupation.
- Keep the tenant informed appropriately. Communications should be planned carefully, particularly where access or viewings are proposed.
- Use qualified professionals for the legal and financial detail. A sale, tenancy and tax position can involve issues beyond an agent’s marketing role.
Keeping the sale file manageable
When you are evaluating several routes, a single, up-to-date record of the property can make it easier to identify missing paperwork and compare information requests. Portfoliq can be used to keep relevant property, tenancy, cost and document records organised while you prepare for those discussions. You can see how Portfoliq works and explore Portfoliq's landlord features in the context of maintaining those records.
That organisation does not determine whether you should sell with a tenant in situ or seek vacant possession, and it is not a substitute for legal, tax, financial or investment advice.
Questions to take to your first agent or adviser meeting
- Which buyer groups are most likely to consider this property as currently occupied?
- How would the marketing differ if vacant possession were required?
- What tenancy and property documents should be available before marketing?
- What information will prospective buyers need, and how should tenant information be handled?
- What conditions could a buyer attach to an offer?
- What should I ask my conveyancer, lender, insurer and tax adviser before accepting an offer?
The key is to make the tenancy position explicit from the outset. A well-organised file and a route-by-route comparison will put you in a better position to assess offers without assuming that a sale itself changes the tenant’s rights or the practical work required.