Renters’ Rights Act Arrives May 2026 – Are You Ready to Sell?

The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025 and represents the most significant overhaul of England’s private rented sector in nearly four decades. With its core tenancy reforms coming into force on 1 May 2026, landlords who are considering selling up face a fundamentally different landscape. For those with tenants already in place, the auction route is attracting renewed interest – and for good reason.

This article sets out the key legal changes affecting the sale of tenanted properties, why the auction route is increasingly relevant for landlords in this environment, and the practical and compliance steps you need to take before putting a property under the hammer.

Updated by: Mark Grantham on 21st February 2026

Last Chance to Serve Section 21: The Clock Is Ticking

If you have been considering selling your rental property and need vacant possession, time is running out. The window to use Section 21 – the mechanism that has allowed landlords to recover their property without giving a reason for over 25 years – is about to close permanently.

From 1 May 2026, Section 21 ‘no-fault’ evictions will be abolished. Any Section 21 notice served on or after that date will have no legal effect. There are no exceptions for existing landlords or long-standing tenancies. The change applies to every private landlord in England, regardless of how long they have been renting out their property.

If you are currently thinking about selling and your tenant has not indicated they will leave voluntarily, acting before 1 May 2026 is critical. Here is what you need to know.

What You Must Do – and By When

To take advantage of the remaining Section 21 route, you need to move quickly and in the correct order. First, your Section 21 notice must be valid. This means all your compliance documents must be in place – a current Gas Safety Certificate, a valid EICR, an EPC, and proof that the tenant has been served with the government’s ‘How to Rent’ guide. The tenancy deposit must also be correctly protected. A single missed compliance step can invalidate the notice entirely, so check everything before you serve.

Once a valid Section 21 notice has been served before 1 May 2026, you do not lose the benefit of it automatically. However, you must begin court possession proceedings by 31 July 2026 at the latest. If you miss that deadline, the notice lapses and you will need to rely on the new Ground 1A process instead – with its four-month notice period and 12-month re-letting restriction (this is effectively a 16 months letting ban from the date of serving notice).

It is also worth noting that court possession timescales are not instant. Even with a valid Section 21, obtaining a possession order and enforcing it through bailiffs can take several months. If you are planning to sell with vacant possession on the open market, factor this into your timeline carefully.

Why Auction Is Worth Considering Right Now

For landlords who are not in a position to complete the Section 21 process in time – or who simply do not want the stress and uncertainty of court proceedings – selling the property with the tenant in place at auction remains a straightforward and legally clean alternative. You receive a competitive market price from an investor buyer, your tenant is not displaced by an eviction process, and you are not exposed to the risks of the new Ground 1A regime.

If you are unsure which route is right for your situation, take specialist legal advice now. The 1 May 2026 deadline will not move.

How the Renters’ Rights Act Changes the Game for Selling Landlords

The End of Section 21

The flagship change under the Act is the abolition of Section 21 ‘no-fault’ evictions. From 1 May 2026, landlords can no longer serve a simple two-month notice to recover possession without a specified reason. This single change fundamentally alters the calculus for any landlord hoping to sell a property with vacant possession on the open market.

Previously, a landlord could serve a Section 21 notice, wait out the notice period, and then market the property to homeowners or other buyers who needed it to be empty. That route is now closed.

The New Route to Vacant Possession: Ground 1A

If you genuinely intend to sell and need to regain possession first, the Act introduces a new mandatory Ground for Possession – Ground 1A (Landlord Intends to Sell). This allows you to serve a Section 8 notice on that basis, but it comes with strict conditions:

• Four months’ notice is required – double the old Section 21 notice period.
• The tenancy must have been in place for at least 12 months before the notice can take effect. In practice, this means the earliest you can serve the notice is eight months into the tenancy (so that the four-month notice period expires after the 12-month mark).
• You cannot re-let or market the property to let for a restricted period – from the date the notice is served until 12 months after the notice expires. In effect, this means a re-letting restriction of up to 16 months from the date of notice. Breaching this is a criminal offence.
• You must be able to demonstrate genuine intent to sell. As a mandatory ground, a court will grant possession if the ground is made out – but judges will scrutinise the evidence. Keep records of your instructions to agents, any sale agreements, or correspondence supporting your decision to sell.

It is also important to note that if the sale falls through, your property cannot be re-let during the restricted period. You could be left with a vacant property, no rental income, and ongoing costs for Council Tax, utilities, and mortgage payments for over a year.

All Tenancies Become Periodic

From 1 May 2026, every existing Assured Shorthold Tenancy (AST) in England automatically converts to an Assured Periodic Tenancy (APT). Fixed terms will cease to exist. Tenancies will roll on indefinitely – month to month or week to week – until either the landlord or tenant serves notice.

Crucially, tenants can end their tenancy at any time with just two months’ notice, from day one of the tenancy. Landlords, however, can only end a tenancy by relying on a statutory ground for possession under Section 8. The days of planning a sale around a fixed-term end date are over.

Why Auction Makes Increasing Sense for Tenanted Properties

Against this backdrop, attempting to sell a tenanted property on the open market to a homebuyer is fraught with complexity. Buyers who need vacant possession will either walk away or demand a significant discount to reflect the legal risk and extended timescales involved in obtaining possession. Viewings become difficult, as tenants now have enhanced rights to ‘quiet enjoyment’ and are not obliged to cooperate.

The auction room, by contrast, is well suited to selling properties with tenants. Here is why:

You sell as-is, with the tenancy in place. There is no need to serve notice, no enforced void period, no restricted re-letting period, and no risk of a sale collapsing mid-possession process. Your tenant continues to pay rent right up to – and after – completion.

The buyer pool is active and informed. Auction buyers are predominantly property investors who understand tenanted sales, have done their due diligence, and are prepared to purchase subject to an existing tenancy. They are not deterred by the presence of a tenant – in many cases, they prefer it.

Speed and certainty. Exchange of contracts takes place at the fall of the gavel, with completion typically following 28 days later. For landlords seeking a clean exit from the market, the auction process removes much of the uncertainty associated with a traditional estate agent sale.

Competitive bidding can drive the price. A well-presented, income-generating property with a reliable tenant in place can attract strong interest from multiple bidders, particularly in high-demand areas where investors are actively looking to acquire ready-let stock.

Practical Steps Before Going to Auction

1. Instruct a Specialist Auction House

Not all auction houses are equal. Look for firms with demonstrable experience in selling tenanted residential investment properties. They will know how to prepare the legal pack, market the property to the right buyer profile, and guide you through any specific disclosure requirements.

2. Prepare a Comprehensive Legal Pack

The legal pack is central to any auction sale. For a tenanted property, buyers will want to see – and are entitled to expect – full transparency. Your solicitor should assemble this well in advance of the auction and it should include:

• A copy of the current tenancy agreement (and any renewal or variation documentation)
• Up-to-date rent statement showing rent paid and any arrears
• Evidence of deposit protection (the deposit scheme certificate and prescribed information)
• All required compliance certificates: Gas Safety Certificate, Electrical Installation Condition Report (EICR), and Energy Performance Certificate (EPC)
• Details of any outstanding maintenance issues or disputes
• Evidence of compliance with the ‘How to Rent’ guide requirement

Buyers bidding at auction are purchasing with knowledge of the legal pack. Any gaps or omissions will either deter bidders or attract queries that delay the auction.

3. Verify Your Deposit Compliance

This is non-negotiable. If the tenant’s deposit is not correctly protected in a government-approved scheme, and the prescribed information has not been served within 30 days of receipt, you may not be able to serve a valid Section 8 notice – and the buyer will inherit that liability. Sort this out before the auction.

4. Consider the Rental Yield Presentation

Auction buyers think in terms of yield. If your property is let below market rent, make this clear in the marketing materials – savvy buyers will factor in rental upside. If it is let at or above market rent, this is a selling point. Under the Act, rent can only be increased once per year with two months’ notice, so buyers will want a realistic picture of the income profile going forward.

5. Brief Your Tenant

You are not legally obliged to give your tenant advance notice that you are selling via auction, but good practice – and a cooperative tenant – will make the process significantly smoother. A tenant who is willing to allow access for viewing days or who can be relied upon to maintain the property in a presentable condition is an asset.

Key Dates and Timelines to Be Aware Of

A Note on Timing: Act Now or After May 2026?

If you have a valid Section 21 notice already served before 1 May 2026, you must begin court proceedings by 31 July 2026. Missing that window means you lose the benefit of the transitional provisions and must rely on Ground 1A instead.

If you have not yet served a Section 21 notice and your tenancy is less than 12 months old, you may wish to consider whether selling with the tenant in place – at auction or off-market to an investor – is the more pragmatic route. The mathematics of a 16-month re-letting restriction, combined with the uncertainty of court timescales, makes chasing vacant possession a risky strategy for many landlords.

Summary

The Renters’ Rights Act 2025 has not closed the door on landlords who wish to sell. It has, however, made the path to vacant possession significantly longer, more expensive, and less certain. For landlords with tenanted properties, selling subject to the existing tenancy – whether at auction, off-market, or through a specialist investment sales platform – is increasingly the route that offers the best combination of speed, certainty, and financial outcome.

The auction room, in particular, is well placed to serve landlords in this new environment. With the right preparation, the right legal pack, and the right auction partner, a tenanted property sale can be completed efficiently, compliantly, and at a competitive price.

This article is intended for general informational purposes only and does not constitute legal or financial advice. Landlords should seek independent legal advice before making decisions relating to possession, sale, or compliance under the Renters’ Rights Act 2025.

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