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The relevant ground is called Ground 1A. It's specifically for landlords who genuinely intend to sell. Relying on it can trigger a statutory restricted period on re-letting, marketing for letting, and re-licensing but that restriction has exceptions, and it isn't automatic just because you've decided to sell.
Selling up as a landlord also raises separate questions beyond the letting ban itself this article covers the Capital Gains Tax and Making Tax Digital implications further down, as well as the legal process.
What Changed on 1 May 2026
The relevant reforms come from the Renters' Rights Act 2025, and the changes discussed in this article apply to assured tenancies in the private rented sector in England. They commenced on 1 May 2026.
Before that date, landlords could generally use a "no fault" Section 21 notice to end a tenancy without giving a reason. That route has gone. Now, if a landlord wants a tenant to leave, they need to rely on one of the specific legal grounds set out in the law and give the right amount of notice.
A Note on Timing
If a notice was served before 1 May 2026, landlords generally cannot now start new possession proceedings using it. However, claims that were properly started by 31 July 2026 can continue under the old rules, with a small number of exceptions (for example, certain cases involving debt breathing-space protections). If you're dealing with a notice served around that period, it's worth checking which regime actually applies to your case before assuming the new rules apply automatically.
What Is Ground 1A?
Ground 1A is the ground a landlord uses when they genuinely intend to sell the property and need the tenant to leave to do so. It's one of several grounds under the law separate from, for example, the ground used when a landlord or a close family member wants to move in themselves (that's a different ground, sometimes confused with Ground 1A).
The main features:
Genuine intention to sell: The ground is meant for landlords who actually intend to sell not as a general-purpose way of ending a tenancy.
Notice period: The standard notice period is four months.
Initial protection: Tenants generally have a 12-month protected period at the start of a tenancy, during which this ground can't be used to end it. The landlord can serve a Ground 1A notice during this period, but the notice usually cannot require the tenant to leave before those 12 months have ended.
Not Every Tenancy Is Covered
Ground 1A isn't universally available. For example, it doesn't apply to certain tenancies that were already non-shorthold assured tenancies before 1 May 2026, and most social landlords can't currently use it. If your situation is unusual an older tenancy, a housing association let, or similar it's worth checking whether Ground 1A even applies to you before relying on the rest of this guide.
Is There Really a "Letting Ban" After Using Ground 1A?
This is the part that causes the most confusion, so it's worth being precise.
There's no blanket ban on selling, and there's no ban that applies simply because you've decided to sell. The restriction only comes into play once you've actually relied on Ground 1A to end a tenancy not once the sale itself has gone through.
How the Restricted Period Is Calculated
People often describe this as "a 12-month no re-let period," but that's shorthand, and it can be misleading if taken literally.
Here's how it actually works:
The restricted period starts when the possession notice is served not when the tenant actually leaves, and not when the sale completes.
It ends 12 months after the earliest date on which possession proceedings could have been started under that notice.
Because the earliest date for possession proceedings is normally four months after service, the restricted period will ordinarily run from service of the notice until 12 months after that earliest proceedings date, giving a total period of roughly 16 months from service.
Worked Example 1
Say a landlord serves a Ground 1A possession notice on 1 March 2027.
1 March 2027: Notice served. The restricted period begins on this date.
1 July 2027: Earliest date the four-month notice period ends, and the earliest date possession proceedings could be started.
1 July 2028: Restricted period ends: 12 months after that earliest proceedings date.
Total restricted period: 1 March 2027 to 1 July 2028 roughly 16 months from the date the notice was served, even though the tenant may have left, and the sale may have completed, well before July 2028.
This can end up being longer than 16 months in some cases for instance, if the notice has to run for longer than the standard four months (which can happen if it's served early in the tenant's initial 12-month protected period).
Worked Example 2
Tenancy starts 1 January 2027 (12-month protection ends 1 January 2028). Landlord serves a Ground 1A notice on 1 June 2027 just 5 months in. A standard 4-month notice would expire 1 October 2027, still inside the protected period, so it can't take effect that early.
1 June 2027: Notice served; restricted period starts.
1 January 2028: Earliest possession date (pushed back to clear the 12-month protection).
1 January 2029: Restricted period ends (12 months later).
Total: ~19 months from service longer than the usual ~16, because the notice had to stretch to ~7 months to respect the protected period.
When the Ground 1A Re-Letting Restriction Does Not Apply
The restriction isn't absolute. Government guidance sets out several situations where it doesn't apply, or can end early, including:
licences linked to a property purchase or a long lease,
leases of more than 21 years,
a possession order obtained on a different ground, and
a specific exemption for shared owners using Ground 1A, subject to conditions.
This isn't an exhaustive list of every exception in the law, but it should be enough to show that the restriction isn't a fixed, one-size-fits-all rule. If your circumstances are unusual, it's worth checking whether an exception applies before assuming the full restricted period is in force.
What Happens If You Breach the Re-Letting Restriction
Re-letting, re-marketing, or re-licensing the property during the restricted period can amount to an offence. Rather than an automatic fine, a financial penalty of up to £40,000 can be imposed as an alternative to prosecution and this is subject to its own exceptions and defences. It isn't accurate to say that any breach automatically results in a £40,000 fine; the amount and whether a penalty is imposed at all depends on the circumstances.
Can You Sell Without Evicting the Tenant?
Yes and this is worth knowing if the restricted period above sounds like an obstacle. Selling a property with the tenancy continuing in other words, selling to a buyer who takes the property on subject to the existing tenancy does not, by itself, mean you've relied on Ground 1A.
Selling with the tenancy continuing is still possible after Ground 1A has been relied on, but doing so does not cancel a restricted period that has already been triggered.
In short: if you're weighing up whether to seek vacant possession before selling, or sell with the tenant, doing the latter (before using Ground 1A) avoids the notice process and the restricted period altogether.
Conclusion
The Renters' Rights Act does not ban landlords from selling. What it changes is how possession works when a sale requires the tenant to leave. Ground 1A is the relevant ground and using it can trigger a restricted period on re-letting, subject to exceptions.
The important points are knowing when Ground 1A can be used, giving the correct notice, understanding when the restricted period starts and ends, and recognising that selling with the tenant still in place can be an alternative to seeking vacant possession.
