New guidance for selling tenanted properties
Summary
Propertymark has issued guidance for agents handling the sale of former rental properties and tenanted homes under the Renters Rights Act. It highlights the use of mandatory possession Ground 1A for genuine sales, the 12-month restriction on serving notice for new tenancies, and the need to avoid implying that vacant possession is guaranteed.
Why it matters
Residential property surveyors may encounter these transactions where tenancy status, notice periods and possession risk affect valuation, marketing assumptions and saleability. Clear documentation and accurate wording are important to avoid misleading buyers and to support defensible advice.
Key points
- Ground 1A can be used only where the landlord genuinely intends to sell.
- No notice can be served within the first 12 months of a new tenancy signed on or after 1 May.
- After 12 months, four months' notice is required before applying to court for possession.
- Agents should not present vacant possession as certain because court and enforcement delays may occur.
- Tenancy details should be established early as they affect valuation, buyer targeting and legal documentation.
Organisations:
Propertymark
Regulations:
Renters Rights Act, Ground 1A
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