Selling a home that is let: with the tenant in place or empty

Two ways to sell

With the tenant in place. The tenancy carries on and the buyer becomes the landlord, usually another landlord or an investor. The tenant keeps all their rights, the rent stays as it is until a lawful increase, and the deposit and paperwork pass to the buyer. Nothing has to be served on the tenant to sell this way.

With vacant possession. The home is empty on completion, which opens it to buyers who want to live there. The tenancy has to end first, in one of three ways:

1. the tenant gives notice themselves (two months, ending on a rent day or the day before);
2. you both agree in writing that the tenancy ends on a date (a surrender), freely and without pressure;
3. you use ground 1A and, if the tenant does not leave, the court makes a possession order.

Ground 1A: selling

Since 1 May 2026, ground 1A in Schedule 2 of the Housing Act 1988 lets a landlord seek possession because they intend to sell. In outline:

• you must give four months' notice on the prescribed section 8 form;
• the ground cannot be used to get possession in the first 12 months of the tenancy;
• you must genuinely intend to sell, and should be ready to show it (an agent's instruction, for example);
• after using it you cannot let or market the home for letting for 12 months;
• it is a mandatory ground, but only a court order ends the tenancy if the tenant stays.

Councils can fine a landlord who misuses a possession ground. Get a solicitor or landlord association to check the dates and the form before serving: when the notice can be served depends on when the tenancy began.

Telling the tenant

Tell the tenant early and plainly. Viewings need their cooperation and the notice your agreement sets out; they are entitled to live in the home undisturbed. Pressure to leave, turning up unannounced or cutting services can be harassment, which is a criminal offence.

Paperwork the buyer will want

• the tenancy agreement or written statement, and the rent record;
• the deposit details: the scheme, the reference and the prescribed information. On sale, the deposit moves to the buyer, who becomes responsible for its protection;
• gas safety records, the EICR, the EPC, any licence and the alarm checks;
• your landlord database entry, once you have one, so it can be updated.

The buyer should give the tenant their name and an address in England or Wales for notices.

The EPC and the advert

You need a valid EPC to market a home for sale; it lasts ten years. Estate agents also have to give buyers material information such as tenure and the council tax band.

Tax

If you are UK resident and there is Capital Gains Tax to pay, you must report and pay it within 60 days of completion through HMRC's online service. If you live abroad, you must report every sale of UK property within 60 days, even if no tax is due. Late reports bring interest and penalties.

Keep the purchase price, buying and selling costs and the cost of improvements (not repairs): they reduce the gain. If you once lived in the home, relief may reduce the tax; a tax adviser can tell you.

Checklist

1. Decide: with the tenant, or empty?
2. If empty, can it be agreed? If not, take advice on ground 1A before serving.
3. Check the EPC and gather the papers.
4. Plan for the 60-day tax deadline.

LevelMoves can keep the notice dates and the papers in one place; it never serves a notice for you.

This guide is information about the law and tax in England, not legal or tax advice.