To serve a valid Ground 1A notice, a landlord must satisfy the following conditions:
Notice Period
A minimum four-month notice period must be given to the tenant. This effectively doubles the two-month notice period that applied under Section 21 prior to the Coronavirus Act extensions. The notice must be in the prescribed form and must correctly state the ground being relied upon.
Intention to Sell
The landlord must have a genuine intention to sell the property. Acting on this intent must be demonstrable: the property should be marketed for sale within three months of the tenant vacating. A landlord who serves a Ground 1A notice but does not subsequently list the property for sale may face a legal challenge from the tenant.
The Re-Letting Embargo
Once the tenant has vacated under Ground 1A, the landlord is prohibited from re-letting the property for 12 months. This is the most commercially significant aspect of the ground. If the sale falls through, or the landlord changes their mind, they cannot simply re-let the property during this period without risk of civil penalties and/or legal action by the displaced tenant. The suggesting starting fine for violations is £25,000 per property.
The potential financial impact of the re-letting embargo — based on a full 12-month void period at average UK private sector rents — is approximately £16,128 per property. For portfolio landlords, this figure multiplies accordingly.
Restrictions on Selling to Connected Parties
Ground 1A cannot be used to evict a tenant in order to sell the property to a family member, business associate, or other connected party who intends to let it again. The sale must be a genuine arm’s-length transaction.