We’re not saying the Government has laid a trap but there is one aspect of the Renters’ Rights Act that could catch landlords off guard.
From the 1st May 2026, there will be a new law regarding how and when landlords can evict tenants if they want to sell with vacant possession. Granted, it’s a well-publicised one but what happens after they regain possession has had scant coverage. Before we explain the trap, here’s a reminder of what’s changing.
The Government has updated its grounds for possession in line with the Renters’ Rights Act. A full list of the Grounds can be found here. If you’re hoping to sell your buy-to-let property after 1st May 2026, you’ll need to read up about the new Ground 1A.
Explained: Ground 1A - sale of dwelling house
Landlords will retain the right to sell a rental property they own but there are new restrictions, specifically if they want to evict tenants and sell with vacant possession.
A landlord won’t be able to use Ground 1A in the first 12 months of a new tenancy. This rule has been introduced to give tenants more security in their home, removing the fear they’ll be evicted as soon as they’ve settled.
Once 12 months have passed, a landlord will need to give the tenants 4 months’ notice before they can apply to the court for a possession order to evict.
The trap once possession is gained
Congratulations! You’ve abided by the new laws, waited 12 months, given the correct notice period and regained your property with vacant possession. But what happens next is also changing from 1st May 2026.
The landlord can instruct an agent to sell the property on the open market, without issue. In principle, the home should attract buyers as it’ll be the end of the chain. Perhaps first-timers will book a viewing or even a fellow landlord looking to keep faith with the rental market.
But what if the sales market is flat? What if mortgage rates double? What if the cost of living crisis spirals to new highs? What if there’s a saturation of properties like yours on the market?
As property experts, LandlordBuyer knows a sale isn’t guaranteed. We also know every week an unsold property languishes on the open market costs a landlord money in mortgagee repayments, void periods fees and insurance policies. It’s even possible ground rent and service charges will be due while a buyer is found.
A new 12 month re-let restriction
Before 1st May 2026, landlords could test the open market for a buyer without penalty. If the prevailing conditions were poor, they could readvertise the property as an available let, no issue. Switching back to rental status for a regular income has been an excellent way to stop an unsold buy-to-let haemorrhaging money,.
Ground 1A, however, comes with a new restriction. Landlords will be prevented, by law, from remarketing or re-letting their property for 12 months after using Ground 1A. In practice, this means a former buy-to-let has to stay on the open sales market for 12 months before a landlord can legally revert to renting it out. That’s a long time to make a loss.
Punishments for trying to re-let
Landlords who are tempted to remarket the property during the 12 month restricted period, breaking the new law in the process, can be prosecuted or given a financial penalty of up to £40,000.
The risk remains even if the landlord asks a letting agent to market the property on their behalf. The landlord shoulders ultimate responsibility and they can still be prosecuted.
How to stop rental losses & sell immediately
LandlordBuyer continues to offer landlords a quick exit strategy. We purchase buy-to-lets with sitting tenants as well as with vacant possession. If you have used Ground 1A to evict tenants but are finding the sales market tough, you can cut your losses and sell to LandlordBuyer.
Transactions are usually wrapped up – exchanged and completed - without around one month, and you won’t need an estate agent. If you’re interested in a fast, fee-free sale to us, please get in touch.