If you’ve read our Renters’ Rights Act guide and Section 24 post, you’ve probably got a reasonable sense of the pressures on UK buy-to-let in 2026. The next question is practical: what do you actually do?
This post compares the four realistic options — with honest timelines, cost structures, and net-return implications. There’s no universally right answer. The best option depends on your leverage, tax position, tenant situation, and how much you actually want to keep doing this.
The four options
- Hold and adapt. Keep the property, absorb the compliance burden, adjust the portfolio structure.
- Sell with tenants in situ. Transfer the tenancy to a new landlord; no eviction required.
- Serve notice and sell with vacant possession. Use Ground 1A (landlord selling) under the new Section 8 framework; sell empty.
- Sell to the tenant. Offer the property directly to whoever’s living there.
The comparison table
Assume a typical UK buy-to-let: £280,000 market value, £1,400/month rent, 65% LTV at 5% interest. Assume a higher-rate-taxpayer landlord.
| Hold | Tenants in situ | Vacant possession | Sell to tenant | |
|---|---|---|---|---|
| Net proceeds | Ongoing | £246,400 (88%) | £280,000 (100%) | £272,000 (97%) |
| Timeline to cash | N/A | 7–14 days | 6–12 months | 2–4 months |
| Carrying cost | £0 | £0 | £4,800–£9,600 | £1,600–£3,200 |
| Capital at risk | Full | None (post-exchange) | Tenant refuses to leave; court proceedings | Tenant’s mortgage falls through |
| CGT event | No (yet) | Yes | Yes | Yes |
| Ongoing net income | £2,400–£5,000/year | N/A | N/A | N/A |
These figures are illustrative, not guarantees. Real figures depend on property specifics.
Option 1: Hold and adapt
When it makes sense:
- You own outright or at very low LTV (Section 24 doesn’t bite).
- The property yields strongly relative to your alternatives.
- You enjoy being a landlord, or the administrative overhead fits your life.
- You have long-standing reliable tenants you want to keep.
- You expect capital appreciation to outweigh current regulatory frictions.
What you take on:
- Decent Homes Standard compliance from 2026.
- Landlord database registration.
- Ombudsman membership.
- Possible EPC C requirement from 2030.
- Extended possession timelines if a tenant situation deteriorates.
Net return: continues at current yield, adjusted for compliance costs (perhaps £200–£600/year in licensing, compliance, and administration).
Option 2: Sell with tenants in situ
When it makes sense:
- You want to exit quickly and cleanly.
- You don’t want to serve notice or risk contested possession.
- Your tenants are staying (or willing to) — we take over as landlord.
- You’re willing to accept 78–90% of vacant-possession value in exchange for speed and certainty.
- You’d rather realise capital now than risk market direction.
How it works:
- We make a written offer within 24 hours based on the property as a yielding asset.
- On acceptance, solicitors transfer the tenancy on completion. Tenant’s deposit registration updates.
- The tenant stays. You’re out. Completion in 7–14 days.
Effective net proceeds on a £280,000 property: typically £246,400–£252,000 (88–90%). No carrying costs in the interim. CGT applies as normal.
See sell a tenanted property for full detail.
Option 3: Serve notice and sell with vacant possession
When it makes sense:
- You want full open-market price.
- Your tenancy is ending naturally, or the tenant is willing to leave amicably.
- You have 6–12 months of runway and can absorb carrying costs.
- You’re confident you can evidence Ground 1A (landlord selling) — you must genuinely intend to sell, with evidence.
How it works:
- Serve Section 8 notice under Ground 1A with 4 months’ notice. Evidence of sale intention (estate agent instruction, cash buyer offer letter) required.
- Tenant vacates at notice expiry. If they refuse, apply for court possession — typically 8–16 weeks in 2026 courts.
- Market the property vacant. Open-market sale timelines typically 3–5 months.
Effective net proceeds on £280,000 property: £280,000 − agent fees (£4,200) − legal (£1,200) − carrying costs (£4,800–£9,600 over 8 months) = £264,200–£269,000 (94–96%).
Note the carrying costs largely offset the headline-price advantage. Once you factor in the risk of a tenant contesting Ground 1A (possible under the new rules — Ground 1A requires genuine intent) and the risk of the open-market sale collapsing (~25% fallthrough rate), the real net advantage over Option 2 narrows further.
Option 4: Sell to the tenant
When it makes sense:
- The tenant has the means or the prospective mortgage credit to buy.
- The tenant wants to stay long-term.
- You’re on speaking terms and can have a direct conversation.
How it works:
- You offer the property to the tenant at a fair price, typically slightly below full market.
- The tenant instructs their own solicitor and arranges mortgage financing (or uses cash / family help).
- Completion proceeds like a standard sale, except without estate agent fees or marketing.
Effective net proceeds on £280,000: typically £272,000 (97%) — small discount to reflect the direct-sale simplicity, offset by no estate agent commission.
Risk: tenant’s mortgage application falls through, forcing a restart. More common than landlords expect.
The honest takeaway
For highly-leveraged, higher-rate-taxpayer landlords with 1–3 properties whose marginal return has dropped to zero or below, Option 2 (sell with tenants in situ) is often the rational choice — not because it’s the highest-price route, but because it’s the lowest-risk, lowest-effort, fastest-realisation route. The headline-price premium of Option 3 often evaporates once carrying costs and timeline risks are factored in.
For larger portfolios, Option 4 (tenant-buyout) or a structured Option 2 portfolio sale often produces better aggregate outcomes.
For unleveraged, low-tax-rate landlords with reliable tenants, Option 1 (hold) remains viable — the regulatory overhead is manageable and the ongoing yield is still competitive with many alternatives.
If you’re selling with tenants in situ
That’s our specialism. Share the postcode, current rent, and tenancy type (AST, periodic, HMO, regulated). We’ll come back within 24 hours with a written offer reflecting the property as an investment asset — typically within 7–14 days of acceptance to completion.