The Renters’ Rights Bill will be introduced in May 2026, impacting rental property sales including changes to notice periods, eviction practices and restrictions on re-letting.
For landlords, this means big changes when it comes to their responsibilities to tenants, legal obligations and even the selling process.
At J Property Management London, we’re here to guide landlords through these changes. We know London landlords, and are committed to making things simple and affordable for them. Whether it’s making changes to your rental property or understanding your new legal obligations, we can help! Get in touch with our friendly team today.
What Is The Renters’ Rights Bill?
The Renters’ Rights bill is new legislation designed to encourage fairer landlord practices and give tenants more legal rights, greater stability and safer living conditions.
It does this by:
- Protecting tenants by preventing landlords from evicting them unfairly
- Preventing landlords from discriminating against tenants with children, pets or those who are claiming benefits.
- Making landlords to adhere to stricter standards
- Banning inflexible tenancy contracts or multiple rent increases.
When it comes to selling their rental property this year, landlords will also have to consider increased notice periods for tenants, restrictions on evictions and stricter rules when it comes to re-letting.
Key Things To Know About The Renters’ Rights Bill If You’re Selling A Rental Property In 2026
If you’re selling a rental property in 2026, these are the key parts of the Renters’ Rights bill that could affect your sale:
Different Eviction Process
To give tenants more rights, the Renters’ Rights bill states that landlords must use Section 8 and go through a specific process to evict tenants including providing a formal notice and potentially applying to court.
Additionally, they have to have clear grounds to justify the eviction such as property damage or rent arrears. While tenants are more protected, it means that the eviction process is now harder and more time-consuming for landlords.
No Evictions During The First Year
Landlords will no longer be able to serve an eviction notice during the first 12 months of a tenancy. This means that some landlords may be out of luck if they were wanting to sell their rental property in 2026.
Longer Notice Periods
For landlords with existing tenants, they will need to provide four months’ notice before selling the property. The current notice period is two, so landlords will need to factor in this time when planning the sale.
Evidence Of Intent To Sell
As part of Section 8, landlords will need to show tenants evidence of their intention to sell the property and provide a 4-month notice period. They will not be able to present this intent to sell if it’s within the first 12 months of tenancy.
Potential For More Court Hearings
More rights for tenants may give rise to more misunderstandings and tenancy disputes.
For example, if tenants refuse to leave after the 4-month notice period, landlords may have to take legal action in order to regain possession of their property.
This is why a clear tenancy agreement from the beginning is so important. Working with a property management company will help you produce the right paperwork to avoid misunderstandings and disputes.
No Re-Lets Within 12 Months
In the case that a landlord has evicted tenants in order to sell and the sale has fallen through, the landlord is prohibited from re-letting the property for 12 months following the eviction notice.
This makes property sales a higher risk for landlords, as they may be left with an empty property if any sale does not go ahead.
Because of this, selling with tenants “in-situ” (selling the rental with tenants still living there) may become a more popular option for those looking to sell their rental property quickly. It allows landlords to sell without having to evict their tenants, speeding up the process.
On the one hand, it avoids void periods and saves the landlord from redecoration costs. They’ll also be able to receive a rental income all the way up to completion day. However, it does mean that the sales will only be open to property investors, rather than those looking for a home, which may mean a smaller pool of buyers.
What Do Landlords Need To Sell A Rental Property In 2026?
Landlords need to provide the right paperwork in order to sell their rental properties in 2026. This will include:
- A valid Energy Performance Certificate (with E rating or above)
- Complete history of Gas Safety Certificates (including a current, valid one)
- A valid and up-to-date Electrical Installation Condition Report (EICR)
- Right to rent for any existing tenants (if selling with tenants in-situ)
- Proof of adherence to the tenancy deposit protection scheme.
Not sure if you have everything you need? Get in touch with our team! We’re always on hand to make sure you have the right documentation.
How Will Property Resale Be Affected In 2026?
Anyone selling a rental property in 2026 will be required to pay a Capital Gains Tax; however, there are a few new things to bear in mind including:
Taxes
From 2026, landlords will have increased reporting requirements including quarterly tax payments instead of annual and digital submission. They’ll have to get used to a digital system and be aware of new deadlines in order to avoid penalties under the new ‘Make Tax Digital’ requirements.
Tax On Interest
From April 2026, certain interest carried over will be taxed as income tax rather than Capital Gains Tax.
More Expensive BADR
If a rental property is set up as a limited company, the Capital Gains Tax rate under Business Asset Disposal Relief (BADR) is set to increase from 14% to 18% for all disposals made after April 6th, 2026.
Rental Property: To Sell Or Rent In 2026?
2026 is set to bring about a wind of change for the private rented sector and a new set of complications for landlords. If you’re wanting to rent out your property, buy-to-lets are still profitable – as long as they’re well managed.
The new 2026 legislation is a call for landlords to get more organised – from better property upkeep to staying on top of taxes and legal compliance.
At J Property Management, we’re there to help every step of the way. We offer a personalised and professional management service to help you optimise your rental property and understand how these new laws affect you.
Contact us today to see how we can make your life as a landlord easier!
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