Key takeaway
Section 21 has been abolished for new possession action from 1 May 2026, but landlords who need to sell with vacant possession still have a route. Ground 1A of the amended Housing Act 1988 allows a landlord to recover possession where a genuine sale is intended, but it comes with a four-month notice period, restrictions on reletting and remarketing, and potentially significant penalties for misuse.
Section 21 was, for many landlords, the main mechanism behind a sale. Few buyers want a tenant they did not choose, and few tenants can be persuaded to leave voluntarily to suit someone else's completion date. Without a no-fault route, the Act would have made selling a tenanted property considerably harder, even where the tenant had done nothing wrong.
Parliament's answer is Ground 1A, a new mandatory ground inserted into Schedule 2 of the Housing Act 1988
What is Ground 1A?
Ground 1A is a mandatory ground for possession under the amended Housing Act 1988 that allows a landlord to recover possession of a rented property where they genuinely intend to sell it.
Who can use Ground 1A when selling a tenanted property?
The obvious audience is the private landlord looking to exit the market or release capital. But this ground also matters to property developers buying or selling tenanted stock.
Ground 6, the redevelopment ground, is only available to the landlord who granted the tenancy in the first place. A developer buying a property with a sitting tenant cannot rely on it.
That leaves Ground 1A as the practical route for anyone acquiring tenanted property for development purposes and wanting it empty. Expect vacant possession to feature more prominently in sale terms as a result and expect this ground to be used accordingly.
For wider discussion of the changing property landscape for developers and investors, see our article on the Draft Commonhold and Leasehold Reform Bill.
What notice is required under Ground 1A?
There are two conditions that define Ground 1A: four months' notice must be given, considerably longer than the two months previously required under Section 21; and the notice cannot expire before the tenancy is twelve months old.
A landlord can serve notice at any point, including within the first twelve months, but the notice period cannot end before that twelve-month mark has passed. For a very new tenancy, this may mean giving more than four months' notice in practice, simply to bridge the gap to the twelve-month point.
What happens after a Ground 1A notice is served?
Once a landlord has served notice under Ground 1A, a restricted period applies: it begins on the date the notice is served and continues until twelve months after the notice expires.
During that time the landlord cannot grant a further tenancy, permit anyone to occupy under licence, or market the property to let. The purpose is straightforward: to stop landlords citing an intention to sell simply to remove a tenant they wish to be rid of, then quietly letting the property to someone else once possession is recovered.
The difficulty is that this restriction applies even where the landlord's intentions were entirely genuine at the time. A downturn in the market, a lack of buyer interest, or a sale that falls through at exchange are all realities of property transactions, but none of them automatically lifts the twelve-month bar.
A landlord who serves notice on Ground 1A needs to be prepared to see the process through, or to accept a lengthy period without rental income if the sale does not complete.
If a sale has already been agreed, the parties need patience while the notice period runs, and potentially while any possession proceedings for a non-compliant tenant work through the court.
What are the penalties for misusing Ground 1A?
A landlord who breaches the restrictions can face a financial penalty of up to £40,000 as an alternative to prosecution. Rent Repayment Orders have also been expanded under the Renters’ Rights Act, with up to two years' rent potentially recoverable for qualifying offences.
What should landlords consider before serving a Ground 1A notice?
Before relying on Ground 1A, landlords need to be honest with themselves about the nature of the sale.
Is this a firm decision to sell, or a speculative test of the market?
The evidential threshold for demonstrating intention to sell is generally lower than that required for the redevelopment ground. Landlords also need to think tactically about when to serve - we discuss problems around timing in our article on the landlord's right to reclaim possession and the Leadmill case.
Given the four-month notice period and the twelve-month restriction that follows, serving too early or without a genuine settled intention can leave a landlord with a property that sits empty longer than anticipated, generating no income and no completed sale.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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