With the Renters' Rights Bill likely to come into force towards the end of 2025, many landlords are considering the possibility of selling part or all of their investment portfolios. This newsletter aims to inform our clients about one of the key changes in the Bill—the abolition of Section 21 notices—and how this will affect their ability to sell properties that are currently tenanted.
Once the Renters' Rights Bill becomes law, it will no longer be possible to serve a Section 21 notice to enable a “no-fault” eviction. Instead, landlords will only be able to evict tenants by serving a Section 8 notice. Importantly, the Bill will introduce a new ground for possession under Section 8 for landlords who wish to sell their property.
A Section 8 notice is a legal mechanism under the Housing Act 1988 that allows a landlord to begin the process of evicting a tenant and regaining possession of a property. Unlike a Section 21 notice, which does not require a reason, a Section 8 notice must be based on one or more of 18 specific grounds for possession.
These grounds are classified as either:
Each ground has its own required notice period, ranging from 2 weeks to 4 months. When multiple grounds are cited, the longest notice period applies.
Once the notice period expires, landlords can begin court proceedings. If the tenant does not vacate, landlords may apply to the court for a possession order. If granted, enforcement officers or county court bailiffs can be used to carry out the eviction, following an additional 14-day notice.
To serve a Section 8 notice, landlords must complete Form 3 of the Assured Tenancy Forms.
Ground 1A: Selling a Property Under Tenancy
When the Renters' Rights Bill is enacted, the Housing Act 1988 will be amended to include Ground 1A, a new mandatory ground for possession.
Ground 1A allows landlords to regain possession if they intend to sell the property. Because it is a mandatory ground, courts must grant possession if the landlord can demonstrate a genuine intention to sell.
⚠️ As of now, there are no official guidelines specifying what evidence landlords must provide to prove intent to sell. This is expected to be clarified as the Bill progresses.
Restricted Period: After serving a Ground 1A notice, the property enters a 12-month restricted period during which it cannot be marketed for letting, including short-term licences (e.g., Airbnb).
If the tenant vacates in accordance with a Ground 1A notice, vacant possession will be achieved no earlier than 12 months after the start of the tenancy, assuming the 4-month notice period has been correctly observed.
Where court proceedings are required (i.e., the tenant refuses to vacate), the notice must comply with Civil Procedure Rules. Government guidelines estimate an 8-week wait for a court hearing, though this may extend during busy periods.
If bailiff or HCEO enforcement becomes necessary, landlords should expect additional delays, including a minimum 14-day enforcement notice period.
View the Civil Procedure Rules
With the upcoming abolition of Section 21 notices, landlords must now plan to use Section 8, particularly Ground 1A, to regain possession when selling a tenanted property. This ground comes with specific conditions—including a 12-month tenancy requirement and a 4-month notice period—which all landlords must understand and factor into their selling strategy.
Staying informed and planning ahead will help ensure a smooth transition once the Renters' Rights Bill becomes law.
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