Selling a Rental Property Within 12 Months

Neil Smith
Jul 29, 2025
4 min read

Updated: Jul 30, 2025

The Ultimate Landlord Guide

At Cotton Estates, we know that circumstances change. Maybe you planned to keep your property long-term — but now you’re thinking of selling within the first year of letting it out.

This is entirely legal, but there are specific rules, rights, and risks that landlords must understand, especially during the first 12 months of an Assured Shorthold Tenancy (AST). Below is your complete guide to doing it the right way — without legal trouble, tenant disputes, or delays.

✅ Can I Sell My Property During a Tenancy?

Yes, you absolutely can sell your rental property while it’s tenanted. But your legal ability to remove the tenant during a fixed term is limited.

According to the UK Government:

“During the fixed term of the tenancy, landlords can only evict tenants in specific circumstances — usually via court, or where a break clause allows early termination.”— Tenancy Agreements | Gov.uk

⛔ Can I End the Tenancy in the First Year?

Only if:

There’s a break clause in the tenancy (usually after 6 months), and you serve notice correctly,
Or the tenant voluntarily agrees to leave.

Otherwise, the tenant has a legal right to stay until the end of the fixed term, and you cannot issue a Section 21 notice until at least 4 months into the tenancy — and it can’t expire before the 6-month mark.

📜 Do I Have to Offer the Property to the Tenant First?

No, not under current English law.

Private landlords are not required to offer the tenant the chance to buy the property before it’s put on the open market.

❗ However, you may choose to offer it to the tenant (known as "first refusal"), especially if: They’re reliable and interested You want a quick, low-fuss sale You’re selling at or near market value

You're under no legal obligation to offer it:

At a discount,
At their rent level,
Or at anything below open market value.

You are free to sell at full market value, as determined by a RICS valuation or local agent.

🔮 Will This Change Soon?

At the time of writing (July 2025), there is no confirmed legal proposal to introduce mandatory “first refusal” rights for tenants in the private rental sector.

While it's been discussed by housing advocates and MPs, the Renters Reform Bill does not currently include this requirement.

We’re watching this space carefully — and will alert all Cotton Estates landlords if new obligations are introduced.

💬 What Am I Allowed to Say to Tenants?

When selling your property, your communications must be clear, respectful and legally accurate.

You can say:

“I’m planning to sell the property, but your tenancy remains valid.”
“There’s no change to your legal rights.”
“If you’re interested in buying, I’m happy to pass your details to the agent.”

You must NOT say:

“You’ll need to move out.” (If it’s still within the fixed term, this is false)
“You have to buy it or leave.” (This is coercive and could be considered harassment)

❌ Threatening or misleading tenants could result in claims of unlawful eviction or harassment under the Protection from Eviction Act 1977.

✅ Including a 6-Month Break Clause in a 12-Month AST

This is completely legal — and highly recommended if you want future flexibility.

Example Legal Wording:

“This tenancy shall be for a term of 12 months. However, either party may terminate the tenancy by giving not less than two months’ written notice to the other, such notice not to expire earlier than six months from the start date of the tenancy.”

This allows both landlord and tenant to give notice after month 4, so the earliest end date is month 6 + 2 months’ notice = 8 months.

Break clauses must be:

Fair and balanced (not favouring just the landlord),
Written in the agreement,
Supported by proper notice periods (usually 2 months).

⚖️ Landlord Do’s and Don’ts When Selling During Tenancy

✅ Do	❌ Don’t
Include a 6-month break clause in the AST	Pressure or mislead tenants about moving
Give tenants 24+ hours’ notice for viewings	Enter the property without permission
Keep all communication clear and legal	Offer incentives or threats to get them out early
Use agents familiar with selling tenanted properties	Assume you can use Section 21 immediately
Offer the tenant the chance to buy if you want	Misrepresent your legal rights to gain possession

🛡️ How to Protect Yourself

Use a break clause in all 12-month ASTs for flexibility.
Document everything — especially tenant notices, viewings, and agreements.
Check legal compliance: deposit protection, EPC, gas safety, and paperwork must be up-to-date before issuing any notice.
Work with experienced lettings and sales agents, like Cotton Estates, who understand landlord-first protections.
Choose your buyer wisely — investor buyers may prefer a tenant in situ.

🧠 Summary: Selling Within 12 Months

Question	Answer
Can I sell during a tenancy?	✅ Yes — at any time
Can I force the tenant to leave early?	❌ No — unless there’s a break clause or agreement
Do I have to offer it to the tenant?	❌ No — not required by law
Can I offer it at market value?	✅ Yes — you’re not obligated to offer a discount
Can I include a 6-month break clause?	✅ Yes — fully legal and recommended
What if I breach these rules?	⚠️ You risk legal claims or invalid notices