Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Renters’ Rights Act Increases Risks for Landlords Selling Properties
Selling rental properties has become “too much of a risk” for landlords under the Renters’ Rights Act, according to a property sector specialist. This follows the introduction of a 12-month ban on re-letting a property after using a Ground 1A notice to evict a tenant in order to sell.
Mark Dawson, managing director of landlord adviser and eviction specialist AST Assistance, highlighted that the 12-month re-letting ban has removed an important safety net for landlords. He stated that landlords can no longer simply re-let their property if a sale falls through, which increases the risk involved in attempting to sell.
Recent analysis by Hamptons showed that in June, landlords accounted for 10.2% of property purchases, compared with 9.2% of homes listed for sale that had previously been rented. This is the first time since 2019 that landlord purchases have exceeded sales.
Dawson noted that more than half (51%) of rental properties failed to complete sales in 2025. He explained that in some cases, this risk can leave a property empty for 12 months, resulting in loss of rental income and ongoing costs such as mortgage payments, utility charges, and council tax.
He advised that landlords now need a much firmer plan when selling, including finding buyers who are less likely to pull out if the eviction process is delayed. This could include buyers who have already had an accepted offer on their own property or first-time buyers with a mortgage already agreed.
Dawson also questioned whether the rules could have unintended consequences for the private rented sector. He suggested that if landlords delay both selling and re-letting to avoid the 12-month penalty, homes could sit empty, which would not benefit buyers or renters.
Source: Property Industry Eye