Whether you have deliberately invested in a buy to let (BTL) property or have found yourself an accidental landlord of your former home or an inherited property, there will inevitably come a time when you start looking for an exit strategy.
In an increasingly difficult rental market – with increasing regulation already in force and imminent controls on landlords ability to end tenancy agreements coming in the Renters Rights Act, which was given Royal Assent in the autumn of 2025 – many landlords are opting to sell up and move on.
According to research by lender Black & White Bridging, some 65,000 UK landlords sold their properties between 2023 and 2024, and it forecasts that another 100,000 will have followed suit by the end of 2035.
In many ways selling a BTL is no more or less challenging than selling an owner-occupied property, but there are key differences to consider.
Some landlords wait until their property is empty before attempting to sell. Under the Renters Rights Act landlords who wish to sell can issue their tenants with a four-month notice, after the first 12 months of tenancy. The landlord cannot go on to re-let the property for a year, so if you struggle to sell you may end up losing income.
Expert advice is crucial because in some areas a tenanted investment may be more appealing to investors than a vacant property. But if you sell a vacant property your pool of potential buyers will also include owner occupiers – a much larger market.
The key advantage of selling a tenanted property is that not only do you continue to earn an income right up until you complete a sale, but some investors will welcome not having to find a new tenant themselves and starting to earn money immediately. They may be pleased to buy into a going concern.
Any sensible investor is going to want to look at the books before making a decision, so make sure you have copies of your rental documents and tenancy agreement to hand, and be prepared to produce financial information showing the property’s income and outgoings.
And, as part of the handover, you will need to hand over the deposit your tenants have paid to their new landlord, and reassign your lease agreements to the new owner – a solicitor’s help will be needed here.
If you want to sell a BTL you will need to pay close attention to the detail of your tenancy agreement.
Assured shorthold tenancy is the most common agreement for private rented properties. If you have this form of agreement you can ask your tenants to leave but, from the start of 2026, will have to give them four months’ notice. If there are problems with your tenant – perhaps they are damaging the property or failing to pay rent – you can still evict them, although this can be a slow and stressful process.
Given the notice period you may wish to start marketing your property before your tenants have moved out. Most tenancy agreements do allow for this but you need to consider the current state of the property. If it is, to be blunt, a bit of a miss, you might be better served to wait until your tenants leave, spruce it up, and then sell. Equally if your relationship with your tenants is poor trying to persuade them to cooperate with viewings might be difficult.
If you sell a BTL you will have to pay Capital Gains Tax on the uplift in value on the property – the difference between what you paid for it and what you sell it.
This tax can eat away up to 28 per cent of the value of your property, depending on your overall income, and is something you must factor in when considering offers.
There are some costs – including estate agent and legal fees – which you can deduct when calculating your capital gain. You may also be able to recoup some of the Stamp Duty paid when you first bought the property. And any improvements you have made to the property during your tenure will also be taken into account. There is also a modest tax-free capital gains allowance, which will save you a few thousand pounds.
Landlords selling homes they once lived in themselves can also reduce their CGT bill although professional advice is, again, highly recommended.
If you bought your BTL property through a limited company, the good news is that you won’t be subject to capital gains tax. You will, however, have to pay Corporation Tax at 19 per cent.
However diligent the landlord, homes which have been rented out for a long time tend to look rather worn around the edges. Tenants don’t tend to take as much care as they would with their own home and some landlords don’t keep up with maintenance and decoration as diligently as they would in their own homes.
Pictures sell properties and you would be wise to consider updating the property before you sell. At the moment few buyers are willing to take on a fixer upper property – the rising cost of building works plus the sheer aggravation of organising them means that the majority of buyers want a move in ready home.
If you are selling a multi-million pound property it is well worth getting a reputable interior designer or home staging company to come in and fix up the property before you try to sell it. As well as advising on what you should do to upgrade the property they will dress the property with loaned furnishings and décor. A stylish finish can really attract a premium.
If you would prefer not to spend too much then take a critical look around yourself. If there are any obvious repairs – cracked tiles, cupboard doors that don’t shut – get a handyman to fix them.
Simple changes like getting the windows cleaned, refreshing paintwork, and replacing worn flooring will not break the bank but can make a real difference. And don’t forget making sure the garden is, at the very least, tidy. For more advice on landlord responsibilities, read our guide here.
We would be delighted to hear from you to discuss your own property requirements. For a non-obligatory consultation, please contact us.
