Selling a house with tenants

Landlords sell tenanted homes all the time, but there is more to plan than when you sell your own home. You need to decide whether to sell with the tenants in place or with vacant possession, follow the rules on notice, keep viewings fair to your tenants and allow for Capital Gains Tax. This guide covers each step for a landlord selling a rental property.

The tenancy rules below apply in England, where the Renters’ Rights Act 2025 changed how landlords end tenancies from 1 May 2026. Different rules apply in Scotland, Wales and Northern Ireland, so check the official guidance for the nation where your property is.

In this guide
Your options when selling a tenanted property
First steps: your lender and your tenants
Selling with tenants in place
Selling with vacant possession
Viewings and presentation
Tax when you sell a rental property
From instruction to completion
Compare estate agents

Your options when selling a tenanted property

You have three main options:

• Sell to your tenants. Your tenants may want to buy the home themselves. This saves you finding a buyer and avoids ending the tenancy or losing rent.
• Sell with the tenants in place. The tenants stay after the sale and pay rent to the new owner, who will usually be another landlord.
• Sell with vacant possession. The tenancy ends before completion, so the property is empty for the buyer and can be sold on the open market.

There is no right or wrong choice, provided you treat your tenants fairly and follow the legal process. The table compares the two main routes.

First steps: your lender and your tenants

Tell your mortgage lender. If the property has a buy-to-let mortgage, tell the lender as early as possible. Ask for a settlement figure and explain whether you plan to repay the mortgage from the sale proceeds or transfer it to another property. Check for any early repayment charge.

Tell your tenants. Let your tenants know at the earliest opportunity. If they do not want to buy, they may still be willing to help with viewings and maintenance. Your tenants have the right to live in the property without unreasonable interference (known as quiet enjoyment), so their cooperation matters throughout the sale. They can withdraw it at any time.

Selling with tenants in place

When you sell with the tenants in place, the tenancy continues on the same terms with the buyer as the new landlord. The tenants’ deposit must stay protected in a government-approved scheme, so agree with the buyer how it will be handled. Your solicitor and the deposit scheme can explain the transfer. For the buyer, the property brings rental income from the day of completion. For you, rent continues until completion and you avoid the cost and delay of ending the tenancy.

Because you will mainly be selling to landlords, the price may reflect the rent and the condition of the tenancy rather than the value to an owner-occupier. Buyers will expect to see the tenancy agreement, the deposit protection details, rent records and the property’s safety certificates. Our guide to landlord obligations lists the documents you should have.

Selling with vacant possession

How much notice must you give in England?

Since 1 May 2026, landlords in England can no longer use section 21 “no fault” notices. Fixed-term assured tenancies have been replaced by periodic tenancies. To end a tenancy because you want to sell, you serve a section 8 notice using the selling ground (ground 1A). The main rules in GOV.UK guidance are:

• You must give four months’ notice before you can apply to court for a possession order.
• You cannot use the selling ground to end a tenancy within its first 12 months. You can serve notice during that period, but it cannot expire before the 12 months have ended.
• You may need evidence that you intend to sell, such as proof that you have instructed an estate agent.
• If the tenants do not leave by the date in the notice, you must apply to court for a possession order.
• After using the selling ground, you cannot market or re-let the property for 12 months.

Your tenants can also end a periodic tenancy themselves by giving two months’ notice.

Older tenancies

Some older tenancies give tenants stronger protection. You cannot use the selling ground if your tenant has an assured tenancy created before 1 May 2026 that was not an assured shorthold tenancy. Regulated (protected) tenancies, which began before 15 January 1989, also give tenants greater protection from eviction and the right to apply for a fair rent. If your tenancy is one of these, take legal advice before deciding how to sell.

Returning the deposit

When the tenancy ends, you must return the tenants’ deposit within 10 days of you both agreeing how much they will get back.

Viewings and presentation

Viewings can be stressful for tenants, especially if they do not want the sale. GOV.UK guidance says a landlord must give at least 24 hours’ notice of a visit and come at a reasonable time of day. In practice, viewings in an occupied home depend on your tenants’ agreement, so plan them together:

• Ask your tenants which times suit them and arrange viewings in blocks, so that several take place in one visit.
• Offer virtual viewings first. They filter out less serious buyers and reduce the number of visits.
• Confirm each physical viewing with your tenants in advance.

Presentation is harder when someone is living in the property. Redecorating an occupied home is disruptive, so think carefully before doing it and agree any work with your tenants. You could arrange a general clean before viewings, with notice to the tenants. Ask them to keep entrances and walkways clear. If the property is empty, an end of tenancy cleaning service can prepare it for sale. Remove any mess left by previous tenants and keep decoration neutral, so that buyers see the property at its best and can picture making their own changes. Our guide on making your house more appealing to buyers has more ideas.

Tax when you sell a rental property

Capital Gains Tax is charged on the profit when you sell an asset that has risen in value. You do not usually pay it when you sell your own home, but a buy-to-let property is normally liable. For the 2026 to 2027 tax year, GOV.UK sets out the following:

• Basic rate taxpayers pay 18% on gains that fall within the basic rate Income Tax band and 24% on any amount above it.
• Higher and additional rate taxpayers pay 24%.
• The tax-free allowance (annual exempt amount) is £3,000.

You must report and pay any Capital Gains Tax on most sales of UK residential property within 60 days of completion. UK residents whose total gains are below the tax-free allowance do not need to report online. Non-residents must report every sale of UK property by the deadline, even if no tax is due. You may have to pay interest and a penalty if you report or pay late. Because the calculation depends on your income, your costs and any reliefs, take advice from an accountant or tax adviser before you sell.

From instruction to completion

Choose an estate agent. You do not have to use an estate agent, but most sellers do. Compare fees and services before you choose. Ask how the agent will handle viewings with tenants in place and whether they market to investors as well as owner-occupiers. Our estate agent fees guide explains typical costs.

Instruct a solicitor early. Get conveyancing quotes once the property is on the market. Completing the initial paperwork while you wait for an offer speeds things up later. See what documents you need to sell your house.

Consider each offer. Look at the buyer’s position as well as the price. Ask whether they have a mortgage agreement in principle, whether they are in a chain and what timescale they expect. If you accept, your agent tells the buyer and sends a memorandum of sale to both solicitors.

Exchange and completion. The buyer’s solicitor raises enquiries and carries out searches. Once these are answered and a completion date is agreed, contracts are exchanged and the sale becomes legally binding. Our guide to what happens on completion day explains the final step. Our guide to the cost of selling a house in the UK covers the fees to budget for.

Compare estate agents

Whichever route you choose, keep your tenants informed and involved throughout. When you are ready to sell, enter your postcode on easyProperty to compare fee proposals from local high street and online estate agents side by side. It is free for sellers and carries no obligation.