New guidance issued for agents selling tenanted properties

New guidance issued for agents selling tenanted properties

Propertymark has released updated guidance for sales agents handling tenanted properties, clarifying possession rules under the Renters Rights Act and emphasising careful marketing and record-keeping practices for landlords and agents.

Propertymark’s guidance addresses the use of mandatory possession Ground 1A by landlords seeking to sell rental properties. It highlights that landlords cannot use this ground to evict tenants within the first 12 months of a tenancy started on or after 1 May 2026. After this period, a four-month notice is required before applying for possession through the courts.

Agents are advised to inform landlords that serving notice does not guarantee possession by a specific date due to potential court delays. The guidance stresses that Ground 1A must only be used when the landlord genuinely intends to sell the property.

Key details of the new guidance for selling tenanted properties

The Renters Rights Act has introduced stricter conditions around possession for landlords wishing to regain possession to sell. Propertymark’s guidance reminds agents that for tenancies commencing after 1 May 2026, landlords cannot serve a possession notice under Ground 1A within the first year of the tenancy. This protects tenants from early eviction solely for sale purposes.

Once the initial 12-month period has elapsed, landlords must provide tenants with a minimum of four months’ notice before applying to the court for possession under Ground 1A. Propertymark highlights that agents should set realistic expectations with landlords and buyers, as possession timelines depend on court availability and enforcement processes.

Marketing of tenanted properties remains permitted during notice periods, but agents must avoid implying that vacant possession is assured. The guidance recommends careful wording such as “subject to vacant possession” or “notice served” to accurately reflect the tenancy status and avoid misleading potential buyers.

For auctioneers, the guidance stresses the importance of ensuring catalogue entries, legal packs, and special conditions correctly describe the tenancy situation and notice status. This helps prevent disputes and confusion during the sale process.

Context and implications for landlords and agents

This guidance comes amid ongoing reforms to tenancy law aimed at strengthening renters’ security while balancing landlords’ rights. The Renters Rights Act represents a significant shift from previous possession regimes, particularly by restricting early use of Ground 1A for sales-related possession.

For landlords, this means they must plan sales with longer lead times and maintain thorough documentation proving genuine intent to sell. Agents play a crucial role in advising landlords on compliance, managing buyer expectations, and accurately presenting tenanted properties in marketing materials.

The requirement to keep clear records of property particulars, advertisements, solicitor correspondence, and other evidence supports landlords if possession is challenged. It also protects agents by demonstrating due diligence in handling sales involving tenanted homes.

Practical considerations for managing tenanted property sales

Agents instructed to sell tenanted properties should establish key tenancy details at the outset. This includes confirming whether the property is let, the tenancy type, start date, notice status, who served any notice, and the possession ground used. These factors influence valuation, marketing strategy, and legal documentation.

Clear communication with landlords about the limitations on possession notices and the potential for court delays is essential. Agents should avoid promising vacant possession by a certain date and instead use conditional language in sales literature.

For landlords, understanding these provisions is critical to avoid unlawful possession attempts and costly legal disputes. Planning sales around tenancy timelines and ensuring compliance with the Renters Rights Act will reduce risks and improve transaction transparency.

Remaining uncertainties and what to monitor

While the guidance clarifies many aspects of selling tenanted properties under the Renters Rights Act, some practical uncertainties remain. Court processing times and enforcement delays can vary, affecting possession timelines unpredictably.

The Act’s impact on market dynamics for tenanted property sales is still emerging. Landlords and agents should monitor any further government updates or case law interpreting Ground 1A use and possession procedures.

Additionally, local variations in tenancy enforcement and evolving landlord licensing schemes may influence how possession notices and sales are handled regionally. Staying informed of regulatory developments will be important for compliance.

What landlords and agents should do now

• Review tenancy agreements and confirm start dates to determine when Ground 1A possession notices may be served.
• Advise landlords on the mandatory 12-month no-possession period and four-month notice requirement thereafter.
• Keep detailed records of all marketing, correspondence, and solicitor communications evidencing genuine intent to sell.
• Use cautious wording in marketing materials to avoid implying guaranteed vacant possession.
• Ensure auction catalogues and legal packs accurately reflect tenancy status and any notices served.
• Communicate clearly with buyers about the tenancy situation and potential possession timelines.
• Monitor official guidance updates from Propertymark and government sources for any changes.

Keeping tenanted property sales compliant with TLA support

TLA membership offers landlords and letting agents access to up-to-date compliance resources and practical guidance on tenancy law changes such as those introduced by the Renters Rights Act. Members can benefit from detailed advice on possession grounds, notice requirements, and marketing tenanted properties.

TLA’s ORBIT platform, currently in BETA testing, is being developed to help members organise property records, manage tenancy documentation, and keep evidence of compliance actions in one place. This can assist agents and landlords in maintaining clear records of marketing activities, solicitor correspondence, and notice service dates, all crucial under the new guidance.

Exploring TLA membership and ORBIT BETA access can support landlords and agents in adapting to evolving legal requirements and ensuring smoother sales processes for tenanted properties.

Looking ahead, landlords and agents should anticipate further refinements to possession procedures and remain vigilant in documenting all steps taken to comply with the Renters Rights Act.

Sources: Landlord Today, Propertymark