Last updated: 9 November 2026. We also checked every rule and figure on this date.
Selling a tenanted property in London is still very possible in 2026, but the Renters' Rights Act has changed how you do it. So this guide explains your options, the notice rules, viewings, paperwork and tax, with a local focus on Hackney and East London.
Selling a tenanted property comes down to one choice: sell with your tenant staying, or get the home empty first. We are Homefinders, a family-run estate and letting agent in Hackney, trading since 1988. So we know both routes well, and this guide shares what works. If you are still deciding whether to sell at all, read should I sell my rental property in 2026? first.
Thinking of selling a rental in London?
We will value your property both ways: with your tenant staying and with vacant possession.
Can you sell a house with tenants in it?
Yes, you can sell a house or flat with tenants in it, and you do not need their permission. However, the tenancy does not end just because you sell. So selling a tenanted property comes down to three routes: sell with the tenant staying, get the home empty first, or sell to the tenant.
Each route suits a different landlord. For example, a landlord who wants a quick, simple exit often sells to an investor with the tenant staying. Meanwhile, a landlord who wants the top price may choose to get vacant possession first, even though it takes longer.
Your 3 options for selling a tenanted property
The right way of selling a tenanted property depends on your timescale, your price and your tenant. Here is how the routes compare.
| Route | Typical timescale | Effect on price | Buyers | Best for |
|---|---|---|---|---|
| Tenant stays | A normal sale, once you find an investor | Often lower, because investors price on rent | Investors and landlords | A simple, fast exit |
| Vacant possession | At least 4 months' notice, then the sale | Usually the highest price | Home buyers and investors | Getting top price if you can wait |
| Sell to the tenant | Fast, if they can get a mortgage | A fair price, but no bidding | Your tenant only | Saving fees and time |
Our summary, based on Shelter's Ground 1A guidance (May 2026) and our own sales in Hackney.
Which way of selling a tenanted property suits you?
How the Renters' Rights Act changes selling a tenanted property
The Renters' Rights Act 2025 removed section 21, so landlords can no longer end a tenancy without a reason. Since 1 May 2026, all assured tenancies in England roll on with no end date, according to GOV.UK.
Instead, a landlord who wants the home back to sell must serve a section 8 notice on Ground 1A. According to Shelter, the rules are strict:
- You must give at least four months' notice.
- The notice cannot end in the first 12 months of the tenancy, so about eight months in is the earliest you can serve it.
- Once you serve it, you cannot let the home, or market it to let, until 12 months after the notice ends.
- If the tenant stays, you must go to court, because only a court order and bailiffs can end the tenancy.
- Misuse can bring penalties of up to £7,000, fines of up to £40,000 and orders to repay up to two years' rent.
In addition, Ground 1A does not apply to every tenancy, such as regulated tenancies. So check your tenancy type first. Our Renters' Rights Act questions and answers cover the wider changes.
Selling with the tenant staying: how it works
When you sell with a tenant in place, the buyer steps into your shoes as landlord. As a result, the tenant keeps the same tenancy, rent and rights.
Most buyers here are investors. In particular, they look at the rent, the tenant's payment record and the paperwork, because they are buying an income. So a long-standing tenant who pays on time is a real selling point.
At completion, the deposit usually moves to the buyer under the sale contract, according to Shelter. Then the buyer must protect it again if needed and give the tenant the required details within 30 days. Meanwhile, the solicitors split that month's rent between you.
Our local view: investors in Hackney ask us first about the rent, the licence and the tenancy start date. If you have all three ready, offers come in faster.
Getting vacant possession: the selling ground or an agreed move-out
You can get the home empty in two ways: agree a move-out date with your tenant, or serve a Ground 1A notice. An agreed move-out is quicker and friendlier, while Ground 1A gives you a legal route if you cannot agree.
Agreeing a move-out
Many tenants will leave by agreement if you give them time and help. For example, some landlords offer help with moving costs or a good reference. However, always put the agreement in writing, and never pressure your tenant, because harassment is a criminal offence.
Using Ground 1A
If you cannot agree, serve a Ground 1A notice with at least four months' notice. Then market the home while the notice runs, but plan your exchange date carefully. That is because, if the tenant stays, a court hearing can push completion back by months.
Our local view: speak to a selling agent before you serve notice, rather than after. That way, you can price the home, line up interest and time the notice so the home is empty when your buyer needs it.
Selling to your tenant
Selling to your tenant can be the quickest and cheapest route, because there are no viewings and no empty months. Also, your tenant already knows the home, so they are less likely to pull out over small issues.
First, get an independent valuation so the price is fair to both of you. Then ask your tenant to speak to a mortgage adviser early. Finally, both sides should use their own solicitor, while the rent continues as normal until completion.
How much less is a tenanted property worth?
A tenanted property often sells for less than the same home empty, but there is no reliable official figure for the gap. That is because it depends on the rent, the tenant and the type of buyer.
Investors work out what they will pay from the rent they will get. Also, most of them pay a 5% stamp duty surcharge on top of normal rates, according to GOV.UK. As a result, their offers can be lower than a home buyer's.
Our local view: in Hackney, a well-let flat with a good tenant can still attract strong investor interest. However, family houses usually sell for noticeably more with vacant possession, because home buyers compete for them. So ask for a valuation both ways before you choose.
Viewings with tenants at home
Viewings are often the hardest part of selling a tenanted property, and they work best when your tenant is on board. Your tenant has the right to live in the home without unreasonable disturbance, so treat viewings as something you agree, not something you demand.
- Tell your tenant you are selling before the home goes online.
- Check the tenancy agreement for any clause about access for viewings.
- Give written notice, ideally at least 24 hours before each viewing.
- Group viewings into set slots, such as one evening and one weekend morning.
- Fix repairs quickly, because a happy tenant shows the home better.
Our local view: when tenants feel respected, they keep the home tidy and speak well of it. In contrast, a tenant who feels pushed can make viewings very hard.
Step by step: selling a tenanted property in London
Here is the usual order for selling a tenanted property, from first thoughts to completion.
- Get a valuation both ways, with the tenant staying and with vacant possession.
- Then check your tenancy start date, deposit protection and licence.
- Speak to an accountant about capital gains tax before you commit.
- Talk to your tenant, and agree viewings or a move-out plan.
- If you need the home empty, serve a Ground 1A notice, giving at least four months.
- Next, gather your paperwork so the buyer's solicitor can move quickly.
- Market the home and agree a sale, with dates that fit your notice.
- Finally, exchange and complete, transfer the deposit and report any tax within 60 days.
Paperwork checklist for selling a tenanted property
When selling a tenanted property, the buyer's solicitor will ask for a full set of documents, so gathering them early saves weeks.
Tenancy documents
- The tenancy agreement, or a written statement of terms.
- Deposit protection certificate and the information you gave the tenant.
- Proof you gave the Renters' Rights Act information sheet, which was due by 31 May 2026.
- Rent statements, including any arrears.
Safety and licence documents
- The latest gas safety record, if there is gas.
- An electrical safety report (EICR).
- A valid Energy Performance Certificate (EPC).
- Any selective or HMO licence, because the buyer must apply for their own.
We also show key facts on every listing, such as tenure and the council tax band, under National Trading Standards guidance. So have your lease and council tax details ready too.
Costs and tax when you sell
Selling a tenanted property usually means paying capital gains tax if it has gone up in value. For 2026 to 2027, the rates are 18% within the basic rate band and 24% above it, while the first £3,000 of gains is tax-free, according to GOV.UK.
Also, you must report and pay within 60 days of completion, according to GOV.UK. So speak to an accountant before you exchange.
- Agent fees and legal fees for the sale.
- Any early repayment charge on your mortgage.
- Costs of getting vacant possession, such as court fees, if the tenant does not leave.
Timing matters too. From April 2027, tax on rental income rises to 24%, 44% or 49%, depending on your band, after the October 2026 Budget. Read what the April 2027 landlord tax rise means before you decide when to sell.
Want to know what your rental is worth?
We will show you the price with your tenant staying and with the home empty.
Selling a tenanted flat: leasehold points
Selling a tenanted flat brings a few extra steps, because the buyer's solicitor will also check the lease. For example, they will look at the lease length, the service charge and any rules on subletting.
So order the management pack from your freeholder or managing agent early, because it can take weeks. Our guides to leasehold reform and selling a flat in London explain more.
Selling a tenanted property in Hackney and East London
Hackney has a strong investor market, because rents are high and demand from tenants stays steady. For example, one-bed flats across Hackney were asking about £2,067 a month in June 2026, according to home.co.uk.
However, licensing matters here. Most Hackney wards are in the council's selective licensing scheme, and a licence cannot pass to a new owner. So tell investor buyers early that they must apply for their own. Our guide to Hackney property licensing explains the schemes.
Our local view: Hackney prices dipped 3% in the year to August 2026, according to Rightmove, and buyers are careful. So a realistic price from day one matters more than ever, whichever route you choose.
Not sure you want to sell?
If you are selling mainly because managing a rental has become hard work, there are other options. For example, we offer full management and guaranteed rent for 2 to 3 years, so you get steady income without the day-to-day work. Compare our letting agent fees in Hackney, or read our honest guide to whether you should sell.
How Homefinders can help you sell a tenanted property
We can help with selling a tenanted property in two ways: we can sell your rental with your tenant staying, or help you plan a sale with vacant possession. Because our sales and lettings teams work side by side in Dalston, we understand both investor buyers and the new tenancy rules.
So we will value your property both ways, plan the timing with you and handle viewings with care for your tenant. Find out more about our lettings and management in Hackney, too.
Talk to a local team that sells and lets homes
Call 020 8533 6461 or visit us at 146 Kingsland High Street, E8 2NS.
Selling a tenanted property: FAQs
These answers cover the questions landlords ask us most about selling a tenanted property, such as notice, viewings and tax.
Selling a tenanted property: the basics
Do I need my tenant's permission to sell?
No, you do not need your tenant's permission to sell. However, you do need their cooperation for viewings, and you cannot make them leave without a valid legal notice. So talk to them early, explain your plans and agree how viewings will work.
Does the tenancy end when the property is sold?
No, the tenancy carries on when you sell with a tenant in place. The buyer simply becomes the new landlord, according to Shelter. As a result, the tenant keeps the same rights, the same rent and the same deposit protection, unless the tenancy is ended properly.
Can a new owner evict my tenant?
A new owner cannot simply evict your tenant. They must use a valid legal ground and give proper notice, just as you would. For example, a buyer who wants to live there would need the separate ground for an owner moving in, which has its own notice rules.
How long does it take to sell a tenanted property in London?
With a tenant staying, a sale can move as fast as any other, often a few months from offer to completion. However, if you need the home empty, plan for at least four months' notice first, plus longer if the tenant does not leave and you go to court.
Notice under the Renters' Rights Act
Can I still use section 21 to sell?
No, section 21 no longer works for new notices. Since 1 May 2026, tenancies in England roll on with no end date, according to GOV.UK. Instead, a landlord who wants the home back to sell must use a section 8 notice on Ground 1A.
How much notice do I need to give to sell?
You must give at least four months' notice on Ground 1A, according to Shelter. Also, the notice cannot end in the first 12 months of the tenancy. So, in practice, the earliest you can serve it is about eight months after the tenancy starts.
Can I re-let the home if my sale falls through?
Not straight away. Once you serve a Ground 1A notice, you cannot let the property, or even market it to let, until 12 months after the notice ends. As a result, a failed sale can mean more than a year with no rent, so plan carefully.
Ground 1A rules and fines
What are the fines for misusing the selling ground?
The fines are high. According to Shelter, councils can issue penalties of up to £7,000 for misuse, and up to £40,000 for offences such as re-letting during the restricted period. In addition, tenants can claim back up to two years' rent through a rent repayment order.
Can I use Ground 1A for every tenancy?
Not always. For example, it does not apply to regulated tenancies, and Shelter says it cannot be used where a tenancy was already an assured tenancy before 1 May 2026. So check your tenancy type with a solicitor before you serve any notice.
Price and buyers
Who buys tenanted properties?
Mostly other landlords and investors buy tenanted homes, because they want rent from day one. Some larger landlords also buy them. However, home buyers who want to move in usually need the property empty, so a tenant in place shrinks your pool of buyers.
Is it easier to sell with or without tenants?
It is easier to find buyers when the home is empty, because both home buyers and investors can bid. However, getting it empty now takes at least four months under Ground 1A. So selling with the tenant in place is often simpler, while vacant possession can bring a higher price.
Can my tenant buy the property?
Yes, your tenant can buy the property if you agree a price. In fact, a sale to the tenant can be quick and cheap, because there are no viewings and no void. Ask them early, and suggest they speak to a mortgage adviser before you agree terms.
Do investor buyers pay extra stamp duty?
Yes, most investor buyers pay a 5% stamp duty surcharge on top of the normal rates, according to GOV.UK. That is because the home is usually not their only property. As a result, investors often factor this cost into their offer.
Viewings and tenants
Do tenants have to allow viewings?
Tenants have the right to live in the home without unreasonable disturbance, so viewings work best by agreement. Check your tenancy agreement for any access clause. Then give written notice, ideally at least 24 hours ahead, and agree set times that suit your tenant.
Should I tell my tenant before the home goes on the market?
Yes, tell your tenant before the home goes online, ideally face to face and then in writing. That is because finding out from a listing damages trust. Also, explain what happens next, such as viewings, timescales and whether you plan to serve any notice.
How can I keep my tenant on side during a sale?
Tell your tenant early, explain the plan honestly and keep viewings to agreed time slots. Also, thank them for keeping the home tidy, and fix any repairs quickly. Some landlords offer a small rent reduction during marketing, but always agree it in writing.
Money and tax
Do I pay capital gains tax when I sell a rental?
Usually, yes, if the property has risen in value. For 2026 to 2027, the rates are 18% for gains within the basic rate band and 24% above it, according to GOV.UK. Also, the first £3,000 of gains each year is tax-free.
When do I report and pay capital gains tax?
You must report and pay any capital gains tax on most UK property sales within 60 days of completion, according to GOV.UK. So speak to an accountant before you exchange contracts, because the deadline comes round quickly and late payment can bring penalties.
Should I sell before April 2027?
That depends on your plans, not just the date. From April 2027, tax on rental income rises to 24%, 44% or 49%, depending on your band, while capital gains tax stayed the same in the October 2026 Budget. So compare both with an accountant before you decide.
What happens to the deposit and the rent when I sell?
The deposit usually moves to the buyer under the sale contract, according to Shelter. Then the new landlord must protect it again if needed, and give the tenant the required information within 30 days. Meanwhile, solicitors normally split that month's rent between you and the buyer.
Paperwork for selling a tenanted property
What documents do I need to sell a tenanted property?
You will need the tenancy agreement, deposit protection proof, gas safety record, electrical report (EICR) and EPC. Also gather rent statements, any council licence and proof you gave the Renters' Rights Act information sheet. Having these ready speeds up the buyer's legal checks.
Does my selective or HMO licence pass to the buyer?
No, licences cannot be transferred to a new owner, under the Housing Act 2004. Instead, the buyer must apply for their own licence. So tell your buyer early, especially in Hackney, where most wards are in the selective licensing scheme.
Can I sell a tenanted flat with a mortgage on it?
Yes, you can sell with a mortgage, because the lender is paid off from the sale money at completion. However, check for an early repayment charge first. Also, ask your lender how long a redemption statement takes, so it does not hold up completion.
Valuations and agents
How do I get a free valuation for a tenanted property?
Book online at homefinders.net, or call our Dalston office on 020 8533 6461. Then we will give you two figures: one with the tenant in place and one with vacant possession. As a result, you can compare the routes before you decide.
Can Homefinders sell a property with my tenant still living there?
Yes, we sell tenanted homes across Hackney and East London. In fact, because we also let and manage homes, we understand what investor buyers look for. So we can market your home to the right buyers, without the tenant needing to move.
This guide gives general information, not legal, tax or financial advice. Rules can change, so speak to a solicitor or tax adviser about your own situation.