How to Sell a Rental Property Using Ground 1A Possession

The Renters' Rights Act 2025 abolished Section 21, but it also introduced a new tool for landlords who want to sell: Ground 1A. This is the first time English law has included a specific possession ground for landlords intending to sell a tenanted property with vacant possession.

If you are considering selling a rental property and your tenant will not agree to leave voluntarily, Ground 1A is the legal route you need to understand. This guide covers every step — the notice period, the restrictions, the evidence courts expect, and the financial trade-offs between selling with vacant possession and selling with a tenant in situ.

For the full Section 8 process covering all grounds from drafting your notice to court enforcement, see our complete Section 8 notice guide.

Disclaimer: This guide is for information only and does not constitute legal or financial advice.

What Is Ground 1A?

Ground 1A is a mandatory ground for possession introduced by the Renters' Rights Act 2025. It is set out in Schedule 2 of the Housing Act 1988 as amended.

"Mandatory" means that if you prove the ground is made out, the court must grant a possession order. The judge has no discretion to refuse based on the tenant's circumstances.

The ground applies when the landlord genuinely intends to sell the property with vacant possession. The word "genuinely" is critical — Ground 1A is not a backdoor replacement for Section 21. The court will scrutinise your intent, and there are penalties for misuse.

The 12-Month Protected Period

You cannot use Ground 1A within the first twelve months of the tenancy. This protected period runs from the start of the tenancy — not from when you decided to sell.

If you purchased a property with an existing tenant, the twelve months runs from the start of that tenant's tenancy, not from your date of purchase. If the tenancy has already lasted more than twelve months when you buy, you can serve notice immediately.

This restriction exists to prevent landlords from granting short tenancies and then using Ground 1A to remove tenants quickly. The same twelve-month restriction applies to Ground 1 (landlord moving in) and Ground 6 (major works). For the full list of grounds and their restrictions, see our guide to Section 8 grounds.

Notice Period: Four Months

The notice period for Ground 1A is four months. You must serve a valid Section 8 notice using Form 3A citing Ground 1A and wait four full months before applying to court.

This is longer than the notice period for rent arrears grounds (four weeks) but reflects the fact that the tenant has not done anything wrong. The extended notice gives the tenant reasonable time to find alternative accommodation.

If you are unsure how to serve the notice correctly, see our complete Section 8 notice guide.

Evidence of Genuine Intent to Sell

The court will expect evidence that your intention to sell is genuine. Turning up and simply asserting that you want to sell is not enough.

Strong evidence includes:

• An instruction letter or contract with an estate agent
• A formal property valuation from a qualified surveyor or agent
• A solicitor engagement letter for the conveyancing
• Correspondence with a mortgage lender about redemption
• Evidence that the property has been marketed (listing, brochure, online portal)

Weak or insufficient evidence:

• A verbal claim that you "plan to sell"
• No engagement with any professional
• Contradictory evidence (e.g., advertising the property for re-let on a different platform)

The more concrete your evidence, the faster the process. Judges are alert to landlords who claim Ground 1A but have no genuine intention to sell — particularly given the concerns about misuse raised during the parliamentary passage of the Act.

The Court Process

If the tenant does not leave by the end of the four-month notice period, you apply to the county court for a possession order. The process follows the standard Section 8 route:

1. File the claim — Form N5 for possession, Form N119 for particulars. Court fee: £415 (HMCTS fee list EX50)
2. Court hearing — typically listed four to eight weeks after filing. Present your evidence of intent to sell
3. Possession order — if Ground 1A is proven, the court must grant an outright possession order. The tenant is given 14 days to leave (up to 42 days in exceptional circumstances)
4. Enforcement — if the tenant still does not leave, apply for a warrant of possession (Form N325, fee £152). Bailiffs attend to carry out the eviction, typically four to six weeks after the warrant is issued

Realistic timeline: Six to nine months from serving notice to gaining vacant possession in a straightforward case.

The 12-Month Re-Let Ban

This is the anti-abuse provision. If you gain possession under Ground 1A and then re-let the property within twelve months instead of completing a sale, you face financial penalties imposed by the local authority.

The penalties are designed to deter landlords from using Ground 1A as a substitute for the abolished Section 21. If you gain possession claiming you want to sell, you must actually sell.

What counts as completing the process:

• A completed sale to a third party
• A sale that fell through despite genuine effort (retain evidence of the marketing, offers, and reasons for failure)

What triggers the penalty:

• Re-letting the property to a new tenant within twelve months of gaining possession
• Withdrawing the property from sale without a credible reason

If circumstances genuinely change after gaining possession — for example, you receive no viable offers and decide to keep the property — retain detailed evidence of your marketing efforts and the reasons the sale did not proceed. This may not prevent a penalty, but it demonstrates good faith.

Vacant Possession vs Tenant in Situ: The Trade-Off

Not every landlord who wants to sell needs Ground 1A. You can sell a tenanted property with the tenant in situ — you just need to understand the financial impact.

For a property worth £250,000, a 10% discount for selling in situ costs £25,000 off the sale price. But Ground 1A costs you legal fees plus months of void and process time. Run the numbers for your situation — the answer depends on your property's value, rental income, and local market conditions.

For a broader analysis of the financial trade-offs around selling, see our article on whether selling or staying makes more financial sense. If you are part of the wider trend of landlords reconsidering their portfolios, our analysis of the landlord exodus and what it means for remaining investors provides useful market context.

Capital Gains Tax: A Critical Factor

Any decision to sell involves capital gains tax. Since April 2024, CGT on residential property disposals is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, with an annual exempt amount of just £3,000.

The full CGT rates and rules are set out on GOV.UK. On a property with significant appreciation, the CGT bill can easily exceed £10,000–£20,000.

This is not a reason to avoid selling if the decision is otherwise sound — but it is a factor that many landlords underestimate. Speak to an accountant before committing. Timing the sale (for example, splitting across tax years or using spousal transfers) can reduce the liability, but these strategies require professional tax advice.

This guide does not constitute financial advice. Always consult a qualified accountant or financial adviser about your specific tax position.

Step-by-Step Summary

1. Confirm eligibility — the tenancy must be at least twelve months old
2. Gather evidence — instruct an estate agent, obtain a valuation, engage a solicitor
3. Serve the Section 8 notice — Form 3A, citing Ground 1A, four months' notice
4. Wait for the notice period to expire — do not apply to court early
5. Apply to court — if the tenant has not left, file Forms N5 and N119
6. Attend the hearing — present your evidence of genuine intent to sell
7. Enforce if necessary — warrant of possession via Form N325
8. Complete the sale — within twelve months to avoid the re-let penalty

Frequently Asked Questions

How long does Ground 1A possession take from notice to vacant possession?

The notice period is four months, after which you can apply to court if the tenant does not leave. Court listing typically takes four to eight weeks, and enforcement (if needed) another four to six weeks. A straightforward case takes roughly six to nine months from serving notice to gaining vacant possession.

Can I use Ground 1A within the first year of a tenancy?

No. Ground 1A cannot be used within the first twelve months of the tenancy. This 12-month protected period applies from the start of the tenancy, not from when you decided to sell. If you need to sell within that period, you must sell with the tenant in situ or wait.

What happens if I re-let the property instead of selling after using Ground 1A?

If you re-let the property within twelve months of gaining possession instead of completing a sale, you face financial penalties imposed by the local authority. This anti-abuse provision is designed to prevent landlords from using Ground 1A as a replacement for the abolished Section 21.

Is it better to sell with vacant possession or with a tenant in situ?

Vacant possession typically achieves 5–15% more than selling with a tenant in situ, because the buyer pool is larger — owner-occupiers, investors, and developers can all bid. However, selling in situ avoids the time and cost of the possession process, which can take six to nine months. Run the numbers for your specific property to determine which route makes more financial sense.

This article is for informational purposes only and does not constitute legal or financial advice.