16/02/2026
The UK's Renters' Rights Act 2025 (expected to take effect by May 2026) abolishes "no-fault" Section 21 evictions, introducing mandatory grounds for selling, such as a new 4-month notice period (Ground 1A).
Yes, many landlords are selling or considering selling due to increased regulation, tax changes, and fears over reduced flexibility, leading to a tighter rental market.
Key Aspects of the New Rules (Renters' Rights Act):
- Abolition of Section 21: Landlords can no longer end tenancies without a specific, legal reason.
- Selling Grounds (Section 8): Landlords can still sell, but must use a revised Section 8 notice, with notice periods likely increasing to four months.
- 12-Month Restriction: Landlords cannot use the selling ground within the first 12 months of a new tenancy.
- No Re-letting Restriction: Once notice to sell is served, landlords may face restrictions on re-letting the property quickly, making the sale process more rigid.
- Selling with Tenants: Landlords can sell with tenants in situ, but it often attracts a 5–10% price discount compared to selling with vacant possession.
Impact on Landlords and the Market:
- Increased Selling: The combination of removing "no-fault" evictions, higher tax burdens, and stricter property standards (e.g., energy efficiency) is causing some landlords to exit the market.
- Reduced Flexibility: The new rules mean landlords cannot easily regain possession, prompting some to sell before the new rules fully take effect.
- Higher Costs/Risks: If a sale fails after serving notice, landlords might face empty property, leading to calls for better, more professional, or corporate management.
While some landlords are leaving, others are adapting by adjusting their portfolios to focus on higher-yielding properties or by ensuring better, more compliant management.
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