Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Landlords Face Challenges Selling Tenanted Properties After Section 21 Abolition

Since Section 21 was abolished on 1 May 2026, many landlords have been searching for information about evicting tenants using Section 8. The process of selling a tenanted property has become more complicated, with landlords often feeling limited to either keeping the property or attempting to evict tenants before selling.

A significant number of landlords are choosing to wait for tenants to leave voluntarily, hoping for market improvements or policy changes. However, the report notes that landlords must remain fully compliant during this period, as tenants are increasingly encouraged to scrutinise landlords and councils are inviting reports of potential breaches. This can lead to complaints, enforcement action, or compensation claims if compliance is not maintained.

The Section 8 eviction process is described as lengthy and complex, with risks of mistakes in notices, supporting evidence, or court procedures potentially derailing possession claims. Even when the process is followed correctly, regaining possession can take many months or longer. Landlords must also continue to address any property condition, safety, or compliance issues raised by tenants during this time.

The report highlights that some landlords, particularly those with missing paperwork, below-market rents, or licensing complications, feel they have no option but to wait for tenants to leave due to the uncertainty and length of the legal process. An example is given of a landlord with a long-term tenant paying below-market rent who wanted to exit the private rented sector but was unsure how to proceed.

A solution described in the report involves finding a cash buyer interested in turnkey investments and mediating between the tenant and incoming buyer to agree on a new rent. This approach allowed the tenant to remain in the property at a higher rent, while the landlord was able to sell without pursuing eviction.

This situation underscores the importance for letting agents and inventory clerks to be aware of compliance requirements and the complexities involved in selling tenanted properties in the current regulatory environment.