If you’ve decided it’s time to cut down your buy-to-let portfolio, sell your current buy-to-let and invest in a new one, or quit property investment entirely, this guide explains the key things you’ll need to consider before putting your rental property on the market.
Should you sell your buy-to-let as tenanted or vacant?
Once you’ve decided to sell up, it’s important that you talk to your tenants – who knows, they may even wish to buy the property themselves.
If this isn’t on the cards, you’ll need to decide whether you want to sell the property as a tenanted buy-to-let or a vacant home on the open market. Both options come with pros and cons:
- If you sell a tenanted property, your target market will be limited to other landlords, who might be attracted by the prospect of having rent coming in from day one. The downside to doing this is that there are lots of administrative hoops you’ll need to jump through.
- If you sell a vacant property without sitting tenants, you’ll be putting your home on the open market, which could achieve a higher selling price. Of course, you’ll need to follow the correct procedures to evict your current tenants first, and you may need to spend money sprucing up the property before you’re able to sell it.
Either way, communication and goodwill between you and your tenants are vital, as the tenants will need to agree that prospective buyers can enter and view the property (especially if this isn’t formally specified in the tenancy agreement).
The state of the property when potential buyers look round could also have a big impact on your sale, and your tenants may feel more inclined to tidy up if you have a good relationship with them.
Selling a buy-to-let property with tenants
Selling to an investor can be quicker than putting the property on the open market, as buy-to-let purchases tend to be conducted by more experienced buyers, involve fewer chains and be less emotion-based. The downside, however, is that you’ll have to deal with additional admin.
For example, you’ll need to provide the tenancy agreement to the new landlord, as well as Right to Rent records, gas safety certificates and inventories. You’ll also need to arrange to have your protected tenancy deposits transferred into the new landlord’s name.
The process isn’t hassle-free for tenants, either – they may have to undergo new referencing checks and sign updated contracts with the new landlord once the sale has completed – although it’s certainly simpler than eviction.
Selling a vacant buy-to-let property
If you want to evict your tenants before selling the property, you’ll need to adhere to the break clauses and contract terms set out in the tenancy agreement – you can’t simply serve notice whenever you wish.
If you’re determined to sell the property during the contracted period, you’ll have to come to an agreement yourself with the tenants, perhaps by providing financial compensation in return for them agreeing to move out early. Legally, the tenants hold the cards in this situation.
If you’re coming to the end of a tenancy period, have a specified break clause or your tenants are on a ‘rolling’ contract, you can serve a no-fault eviction using a Section 21 notice. This will give them two months’ notice before they have to vacate the property.
Remember to factor in some decorating time if you want to spruce up the property before putting it on the market, but if you have a buy-to-let mortgage, bear in mind the loss of rental income during this period.
Capital gains tax when selling a buy-to-let property
Buy-to-let properties are subject to capital gains tax (CGT).
This is charged at a rate of 28% (for higher-rate taxpayers) or 18% (basic-rate taxpayers) on any growth in value that the property has enjoyed. If you’re a basic rate taxpayer, bear in mind that the gain will be added to your income, so this could push you into to higher-rate band.
Everyone has a tax-free capital gains allowance of £12,300 per year in 2020-21, so you’ll only need to pay CGT on profits above this threshold.
It’s also possible to offset some costs, such as what you paid out for stamp duty and conveyancing when you bought the property and any charges associated with selling it (including estate agent fees). You should also be able to offset any capital improvements you’ve made to the property against your CGT bill.
You’re not allowed to deduct outgoings on the upkeep of the property or mortgage interest.
Selling a buy-to-let property: mortgage implications
When preparing your exit strategy, it’s important to consider the mortgage implications of selling your buy-to-let property.
This is particularly important if you’ve taken out a fixed-rate mortgage, where your repayments are set for a specific number of years (usually two or five, though 10-year deals are becoming more common in the buy-to-let sector).
Longer-term fixed-rate deals often come with hefty early repayment charges. For example, on a five-year fix, the repayment charge might be as much as 5% in the first year, before dropping to 4%, 3%, 2% and 1% each year until the end of the introductory period.
Not all products have such high early repayment charges, so check the specifics of your mortgage before deciding when to sell.
- Find out more: Buy-to-Let Mortgages
Renters’ Rights Act 2026: What UK Landlords Need to Know (New Rules Explained)
From 1 May 2026, the Renters’ Rights Act 2025 will introduce major changes to the UK rental market.
If you’re a landlord, understanding these new rental laws in the UK is essential to avoid fines, stay compliant, and manage your properties effectively.
In this guide, we break down the Renters’ Rights Act changes for landlords, what they mean in practice, and what you need to do now.
Key Changes to Rental Laws in 2026
The Renters’ Rights Act brings in a number of reforms that will impact how tenancies are structured, managed, and ended.
Fixed-Term Tenancies Are Being Abolished
From May 2026, all tenancies will become periodic (rolling) tenancies.
This means:
• No fixed end dates on tenancy agreements
• Tenancies continue until the tenant leaves or valid legal grounds are used
• Greater flexibility for tenants
For landlords, this removes the certainty of fixed-term agreements and changes how you plan tenancy timelines.
Section 21 Is Being Scrapped
One of the biggest changes is the removal of Section 21 ‘no fault’ evictions.
Landlords will now:
• Need a legal reason (Section 8 grounds) to regain possession
• Provide evidence if the case goes to court
• Follow stricter processes when ending a tenancy
This is a major shift in UK eviction rules for landlords.
New Rules on Rent Increases
Under the new legislation:
• Rent can only be increased once per year
• Landlords must give at least 2 months’ notice
• Increases must reflect market rent levels
Tenants will also have the right to challenge increases through a tribunal.
This creates a more regulated approach to rent increases in the UK private rental sector.
Tenants’ Rights to Keep Pets
Tenants will have the legal right to request permission to keep a pet.
Landlords:
• Cannot unreasonably refuse
• Must provide a valid reason if declining
• Must consider each request individually
Legal Requirement: Information Sheet for Tenants (Deadline 1 May 2026)
One of the most important (and immediate) requirements for landlords is the Renters’ Rights information sheet.
You must:
• Provide the official information sheet to all tenants before 1 May 2026
• Ensure tenants acknowledge receipt (email confirmation is acceptable)
This applies even if your tenancy agreement is not changing. Failure to comply could result in fines of up to £7,000.
The form you need to send can be found here: https://www.gov.uk/government/publications/the-renters-rights-act-information-sheet-2026
How Will the Renters’ Rights Act Affect UK Landlords?
These changes mean landlords will need to take a more structured approach to managing their properties.
In practice:
• You’ll need clearer documentation and processes
• Ending a tenancy will require stronger justification
• Rent reviews will be more controlled
For landlords with multiple properties, staying organised and compliant will be key.
Should Landlords Be Concerned About the 2026 Rental Changes?
The reforms don’t remove the opportunity in property investment, but they do change the landscape.
Landlords who stay informed and adapt early will be in a stronger position.
This is particularly important if you are:
• Expanding your portfolio
• Reviewing your current mortgage or borrowing
• Considering selling or restructuring your properties
Need Help Understanding the New Landlord Rules?
If you would like any guidance on how the Renters’ Rights Act 2026 affects you or your properties, please get in touch.
We’re always happy to have a conversation and help you understand your options.
Frequenty Asked Questions
When does the Renters’ Rights Act come into force?
Do I need to send tenants the Renters’ Rights information sheet?
Failure to do so could result in fines of up to £7,000.
Are fixed-term tenancies being abolished?
How often can landlords increase rent under the new rules?
Do landlords have to allow pets?
Do these changes apply to all rental properties?
Do landlords need to update tenancy agreements?
Can tenants refuse to acknowledge receipt?
Keeping a clear record of when and how the document was sent is important for compliance.
Is Section 21 being scrapped?
Landlords will need to rely on Section 8 grounds and provide a valid legal reason to end a tenancy.
Can tenants challenge rent increases?
What happens if landlords don’t comply with the new rules?
What should landlords do now?
• Provide the required information sheet to tenants
• Obtain acknowledgement of receipt
• Review their tenancy processes
• Stay up to date with the new rules
Any Questions?
BUY-TO-LET: WHAT YOU NEED TO KNOW
With interest rates at record lows and house prices rising, you may be considering investing in a buy-to-let property. But before you take the plunge, it’s important to understand the costs, risks and rewards involved in becoming a landlord.
Schemes such as the stamp duty holiday can make a buy-to-let investment more attractive in the near-term. But it’s important to evaluate all aspects of your proposed investment. The key factor being where you decide to purchase a property.
This guide outlines exactly what you need to know to make your decision:
SETTING UP AN SPV LIMITED COMPANY
Buy to let lenders who offer mortgages to limited companies usually require the limited company to be an SPV (Special Purpose Vehicle).
In the mortgage world, a Special Purpose Vehicle limited company is a company which is set up just to hold property and do nothing else. Buy to let lenders offering mortgages to corporate vehicles mostly prefer SPVs to trading limited companies because they are easier and quicker to understand and underwrite, and are perceived as being lower risk.
Many more landlords are now purchasing rental property via an SPV limited company because it can be more tax efficient now that the changes to tax relief on finance costs for individual landlords have been phased in.
As you can imagine, we now frequently get asked how one goes about setting up an SPV. The honest answer is that it is very simple and is no different to setting up any other company.
You can either ask your accountant or simply go to the Companies House website and set the company up yourself. An SPV limited company costs £12 to set up, and if done online, it will take just a few minutes to arrange. As long as you intend to use the company just for property letting going forward, this would be an SPV – there is nothing more complicated to it!
For those who already have companies and are wondering whether this would meet the SPV criteria, here is what the lenders like to see:
• SIC code for letting property
• No sign of any revenue through the company of anything other than letting property
If the company has traded in another field in the past, some of the lenders will still lend to the company as long as this is historic, the company has the right SIC code and the accountant can confirm the company will only be letting property going forwards.
What is a SIC code?
The Standard Industrial Classification of Economic Activities (SIC) is used to classify business establishments by the type of economic activity in which they are engaged.
How do you get a SIC code?
You will need a SIC code when filing the SPV’s Annual Return with Companies House. To choose a SIC code, use the official Condensed SIC list on the Gov.uk website. Most investors require a SIC code from Section L: Real estate activities.
Buy to let mortgages for non-SPV limited companies
If your company trades in something other than property you can still get a buy to let mortgage; however, your options are restricted to fewer specialist lenders.