Ground 1A Explained: The New Mandatory Ground for Possession Under the Renters’ Rights Act

Ground 1A under Section 8 replaces Section 21. Here's what landlords need to know

Table of contents

Ground 1A is the new mandatory possession ground introduced by the Renters’ Rights Act 2025 that allows a landlord to end a tenancy on the basis of an intention to sell the property. It replaces, in part, the function that Section 21 previously served for landlords wishing to sell with vacant possession — but it does so with considerably more complexity, potential cost and legal risk.

Understanding Ground 1A is essential for any landlord making decisions about their property in 2026 and beyond. This guide sets out exactly what it is, how it works, what it costs, and what the alternatives are.

What Is Ground 1A?

Ground 1A is a new mandatory possession ground under Section 8 of the Housing Act 1988. “Mandatory” means that if the landlord correctly establishes the ground, the court must grant possession — there is no judicial discretion to refuse on the tenant’s circumstances.

The ground allows a landlord to recover possession of a property where they intend to sell it with vacant possession. It is the legislative mechanism designed to replace Section 21 for the specific purpose of a property sale.

The Requirements of Ground 1A

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.

How Ground 1A Differs from Section 21

Prior to 1 May 2026, Section 21 allowed landlords to end a tenancy without providing a reason, subject only to correct notice service and procedural compliance. It was widely used by landlords prior to a sale to secure vacant possession. The contrast with Ground 1A is significant:

Section 21 (pre-May 2026)

Ground 1A (post-May 2026)

Reason required? No — no-fault Yes — intent to sell
Notice period 2 months (standard) 4 months minimum
Re-letting restriction? None 12-month embargo
Sale must complete? Not required Expected within 3 months of vacancy
Financial risk if no sale? Low High: potential 12 month/ £16,128 income loss

 

Looking to sell?

The Alternative: Selling with Tenants in Place

Ground 1A applies only where a landlord requires vacant possession for a sale. It is not necessary where the landlord sells the property with the tenancy intact.

A tenanted sale, to a buyer who intends to continue the tenancy, sidesteps Ground 1A entirely. There is no notice period, no re-letting embargo, no vacant possession requirement, and no risk of legal challenge from a displaced tenant. The landlord sells; the buyer takes on the tenancy; the tenant’s security is protected.

This is the structural advantage of the LP Exchange model. By connecting landlords with verified investors who are specifically seeking tenanted income-producing assets, LP Exchange removes Ground 1A from the equation.

What Landlords Should Do Next

Ground 1A is relevant to any landlord in England who is considering a property sale and has a sitting tenant. If you are in this position, you should:

  • Seek independent legal advice from a specialist property solicitor before serving any notice
  • Consider whether a tenanted sale to a verified buyer removes the need for any notice at all
  • Review the LP Exchange platform as a structured alternative to the open-market vacant possession route

Explore tenanted sale options — avoid Ground 1A entirely

Request a confidential valuation from LP Exchange — no obligation, no estate agent fees.

Get in Touch