The government’s Renters’ Rights reforms will begin reshaping the private rented sector from May 2026, bringing important updates to how landlords manage tenancies, plan property sales and maintain compliance.
While much of the national conversation centres on increased tenant protections, London landlords should pay particular attention to the upcoming rules around selling a tenanted property — including the 12-month protected period, the four-month notice requirement, and the 12-month restriction on re-letting if a sale falls through.
These changes introduce new considerations, but also highlight the importance of strategic planning. With the right approach, landlords can continue to achieve strong rents, reduce risk and maintain flexibility. Here’s what you need to know.
What’s changing: the key points landlords should understand
1. Reform timeline
The Renters’ Rights Act received Royal Assent in 2025, with Phase 1 due to begin on 1 May 2026.
2. Selling or moving into your property — new rules
To regain possession because you intend to sell or move in, landlords must use a specific statutory ground. Under this ground:
You cannot serve notice until the tenancy has been running for 12 months (the protected period).
Once eligible, you must give four months’ notice.
If the sale falls through, you cannot market or re-let the property for 12 months after the tenancy ends.
This is a notable shift, but it doesn’t mean selling becomes impossible. Instead, it means early planning and considered timing will matter more than before — and there are ways to structure sales so the risks are manageable.
3. Fixed-term ASTs abolished
All new and existing assured shorthold tenancies will convert to periodic.
4. Section 21 abolished
There will be no more “no-fault” repossessions. All evictions must rely on a statutory ground.
5. Annual rent increases only
Rent can be increased only once every 12 months and must follow the statutory procedure. Tenants may challenge increases via the tribunal.
6. Heavier penalties for breaches
Fines for serious offences may reach up to £40,000.
Why the “12 months + 4 months + 12 months” combination matters
For London landlords, these timelines are the most operationally significant change.
You cannot serve notice to sell until the tenancy has run for 12 months.
You must then give four months’ notice.
And if the sale collapses, re-letting is restricted for 12 months after the tenancy ends.
This creates potential exposure, but it also creates an opportunity to plan sales more deliberately. Longer lead times — for example, agreeing an extended exchange and completion period — may significantly reduce the likelihood of a fall-through and help maintain income stability throughout the process.
A practical example
If your tenant moves in today and you decide to sell ten months later, you would need to wait until month 12 to serve notice, then allow four months for possession. If the sale then fell through, the property could remain empty for a prolonged period.
However, with careful structuring — such as preparing the property for sale well in advance, securing motivated buyers, or aligning the sale with natural tenancy cycles — this risk can be minimised.
What landlords can do now
1. Review tenancy start dates
Understanding where each tenancy sits within the 12-month protected period will inform your strategy.
2. Build scenarios into your cash-flow
Rather than assuming a worst case, model different outcomes — including longer completion timelines or pre-agreed sales with tenants in situ.
3. Document any intention to sell
Clear records of marketing activity support transparency and help reduce disputes.
4. Communicate openly with tenants
A cooperative tenant can make a sale smoother. Early conversations often lead to mutually agreeable solutions.
5. Ensure your agent is up to date
Many agents are still operating on pre-reform processes. Letio ensures all notices, communication and compliance are aligned with the new framework.
6. Stay informed
Industry bodies such as NRLA, Propertymark and Rightmove publish useful ongoing commentary.
How Letio helps London landlords navigate the reforms
At Letio, we believe that good planning removes uncertainty. Our approach focuses on trust, transparency and simplicity — three things that matter more than ever as the market adjusts to the RRB.
Here’s how we support you:
Strategic planning for sales and renewals
We help map tenancy dates, forecast timelines and identify opportunities to reduce risk — including using longer exchange and completion periods where appropriate.
Achieving stronger rents
London’s rental market remains resilient. Our data-led pricing helps you secure the best possible rent, improving your overall position ahead of any sale.
Clear, proactive compliance management
We handle notices, documentation and tenant communication so you stay fully aligned with the new legislation.
Void-risk modelling
We assess your exposure and help you plan for different outcomes, ensuring you can make confident long-term decisions.
Local insight
London’s lettings market is unique. We guide you through timing, pricing and tenant expectations with clarity.
Conclusion
The Renters’ Rights reforms introduce new rules, but they also highlight the value of preparation. Selling a tenanted property will involve more forward planning than before — but with the right strategy, solutions such as longer lead times, structured sales and improved rental returns can keep you firmly in control.
Your next steps:
Review tenancy start dates
Reassess any sale plans with the new timelines in mind
Build flexible scenarios into your budget
Ensure your agent is fully aligned with the new legislation
Letio can help you navigate the RRB with confidence, reduce uncertainty and make informed decisions about your property. Book a meeting with our team to start planning ahead.
