If you’re a UK landlord considering selling a tenanted property to another landlord, you do not automatically need to serve a Section 21 notice simply because of the sale. Under current housing law, a valid tenancy usually transfers with the property, and the buyer inherits the existing tenancy without requiring eviction by the seller. This means tenants can stay under their current agreement until it ends or valid notice is given under the proper legal framework separate from the act of selling the home.
What Happens to the Tenancy on Sale?
When you sell a property that has tenants living in it, often referred to as selling with tenants in situ or with a “sitting tenant, the existing tenancy agreement continues unchanged after completion. The buyer becomes the new landlord, stepping into the shoes of the previous owner and inheriting both rights and obligations tied to the existing contract. This includes rent, repairs, deposit protection, and other statutory duties. Tenants retain the right to occupy the property until the tenancy lawfully ends or an appropriate possession notice is served.
In practical terms, this means:
- No Section 21 notice is required just because you are selling to another landlord; the tenancy simply transfers to the buyer.
- The buyer must respect the existing contract unless both parties agree to a new arrangement.
- Tenants continue to enjoy their statutory protections until the tenancy ends naturally or with proper notice.
When Is a Section 21 Notice Relevant?
A Section 21 notice, often called a no‑fault eviction, allows landlords to regain possession under an assured shorthold tenancy (AST) by giving at least two months’ notice without needing to state a reason. It is one of the ways a landlord can evict a tenant if they want them to leave. However, this is not triggered by the sale itself, and you would only consider Section 21 if your intention is to end the tenancy before selling with vacant possession.
Even where Section 21 is used for other reasons, it has specific conditions:
- It cannot be served during the first four months of a tenancy.
- The tenancy must be periodic or have a break clause.
- A landlord must comply with certified safety requirements (e.g., EPC, gas safety) and other statutory obligations. The landlord will need proof that they have complied with the prescribed information and the deregulation act 2015 too.
Important Legal Change: Abolition of Section 21
The rental landscape is changing. The Renters’ Rights Act 2025, set to come into force on 1 May 2026, will abolish Section 21 no‑fault evictions for new and existing tenancies, meaning landlords will no longer be able to evict tenants without a specific legal ground. After this point, if a buyer wants vacant possession, they’ll need to rely on Section 8 grounds (e.g., tenant breach, arrears, or genuine intention to sell) and provide the required notice period.
Jason, CEO of LandlordBuyer says “Many landlords assume they must evict tenants before selling, but in most cases that simply isn’t necessary. When you sell to another landlord, the tenancy transfers seamlessly, allowing the buyer to start receiving rent from day one while avoiding the disruption and cost of serving notice. With upcoming reforms removing Section 21, understanding your options has never been more important – and for many landlords, selling with reliable tenants already in place is becoming one of the most practical and profitable routes.”
Summary
- Selling to another landlord? You do not need a Section 21 notice simply because of the sale; the tenancy transfers to the new owner.
- Want the tenant to vacate first? You must serve valid notice (Section 21 currently or Section 8 after reform) if you intend to sell with vacant possession.
- Future landscape: After May 2026, Section 21 will be abolished, and landlords must use specific grounds under Section 8 for possession.
Sell your rented property to LandlordBuyer
For landlords seeking a smoother way to sell tenanted properties without serving notices, explore how you can sell with tenants in place, learn why selling with tenants can be beneficial, and view our step‑by‑step guide.