How will The Renters Rights Bill effect Landlords wanting to sell?

The upcoming Renters’ Rights Bill is set to reshape the UK rental market, with significant implications for landlords—especially those considering selling their property. While the legislation aims to strengthen tenant protections, landlords should be aware of how these changes may affect their exit strategies and property sales.

Longer Notice Periods

One of the most direct impacts is the extension of notice periods. Landlords who wish to sell will likely need to provide tenants with longer notice before (the current proposal is 4 months, in comparison to the current 2 months’ notice period) regaining possession. This could delay sales and may make it harder to align property listings with market conditions.

End of “No-Fault” Evictions

The abolition of Section 21 “no-fault” evictions means landlords can no longer simply end a tenancy to sell up. Instead, they must rely on new, more limited grounds for possession. Selling with sitting tenants may become more common, but this typically narrows the pool of potential buyers to investors rather than owner-occupiers.

Restrictions on Re-Letting within 12 months

Under the Renters’ Rights Bill, landlords who regain possession in order to sell a property may be prevented from re-letting it for at least 12 months. This rule is designed to ensure that landlords use the “intention to sell” ground genuinely, rather than as a way of removing tenants without a sale taking place. Therefore, Landlords must be serious about selling.  

Potential Market Value Implications

With tenants’ rights strengthened, selling a property with renters in place may impact valuations. Owner-occupiers may be reluctant to purchase until the property is vacant, potentially leading to longer selling times or lower offers. Investors, however, could view tenanted properties as attractive for steady rental income, particularly in high-demand areas.

Key Takeaway for Landlords

If you are considering selling your rental property, planning ahead is more important than ever. Factor in longer timelines, ensure compliance is watertight, and consider whether selling with tenants in place or regaining vacant possession is the better strategy for your situation.  

Our sales experts at The Property Quarter have you covered, give us a call today and we will advise you on the best strategy to meet your goal.