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Resilience & Solutions for Landlords
The 12-Month Reletting Restriction When Serving a Section 8 Notice to Sell
Edward at Cantell and Co is continuing to guide landlords through the renters rights bill as we approach the six month mark since implementation. Since the abolishment of the section 21 notices we look at solutions for landlords looking to seek possession of their property.
The Renters’ Rights Act 2025 introduced significant changes to the rules governing how landlords in England can regain possession of their properties. For landlords considering selling a tenanted property, understanding these changes is essential before serving notice.
Since 1 May 2026, landlords seeking possession because they intend to sell must generally rely on Ground 1A of Section 8, provided the statutory conditions are met. This ground requires a genuine intention to sell and carries a minimum four-month notice period. Landlords must also follow the correct legal procedure before seeking possession through the courts.
However, there is an important restriction that landlords need to consider carefully: using Ground 1A triggers a 12-month restriction on reletting or marketing the property for rent. This can have serious financial implications if the planned sale falls through or circumstances change.
Understanding the 12-Month Reletting Restriction
The legislation is designed to prevent landlords from using the intention-to-sell ground to remove tenants when their real intention is to continue letting the property.
Where the restriction applies, landlords cannot simply change their minds and advertise the property for rent or let it to new tenants during the restricted period. The rules also cover certain arrangements allowing occupation in return for payment.
Breaching these requirements can result in enforcement action and financial penalties of up to £40,000.
What Happens If the Property Does Not Sell?
For landlords, the practical consequences can be considerable.
If a property fails to sell, the owner may face ongoing mortgage payments, insurance premiums, maintenance costs and other property-related expenses, while being unable to generate rental income by reletting the property during the restricted period.
This creates a difficult position for landlords who have recovered possession in good faith but subsequently encounter delays, changing market conditions or an unsuccessful sale.
The key is to understand the restrictions before serving notice, rather than discovering the financial implications after the tenant has left.
Think Carefully Before Serving a Section 8 Notice
Before relying on Ground 1A, landlords should consider:
- Their intention to sell: Ensure there is a genuine intention to sell and that the statutory requirements can be satisfied.
- The notice period: Allow for the required four months’ notice
- The potential financial impact: Consider whether the property can remain vacant without rental income if the sale is delayed or unsuccessful.
- The restricted period: Understand the rules on reletting and marketing the property for rent, including the circumstances in which exceptions may apply.
- Professional advice: Seek advice from a qualified property solicitor or experienced letting professional if there is any uncertainty about the procedure or its consequences.
Could Waiting for the Tenant to Leave Voluntarily Be an Alternative?
For landlords who are considering selling but are not under immediate pressure to regain possession, it may be worth waiting until the tenant gives notice to avoid the 1 year relet restriction. This means landlord would have the option to revert back to lettings if the property fails to sell for any reason.
The Bottom Line for Landlords
The Renters’ Rights Act 2025 has made it more important than ever for landlords to plan carefully before seeking possession to sell a property.
If you rely on Ground 1A, you must be prepared to comply with the applicable 12-month restriction on reletting and marketing the property for rent.
At Cantell and Co we will give our honest insight into market conditions and offer our best advice helping landlords make informed decisions, manage their financial exposure and avoid potentially costly mistakes.