Selling buy-to-let property: a guide

There has been a sharp rise in the number of landlords choosing to sell up their buy-to-let (BtL) properties and exit the market in 2026.

Faced with higher taxes, more stringent regulations, new tenant rights and incoming energy efficiency rules, many landlords have decided it’s time to sell up. The final quarter of 2024 saw record numbers (26%) of landlords selling their properties, while those investing in new properties sat at just 8%.

At House Buyer Bureau we’re seeing landlords exiting the market due to rising costs of compliance, reduced tax relief and increasing tenant regulation. Many of the landlords we see are accidental landlords who’ve inherited property and are choosing to sell up rather than carry the cost of upgrading their properties to meet new EPC standards.

Why are landlords selling their BtL properties?

Many landlords are selling due to a combination of rising costs, increased regulation and falling profits. New tenant protections and EPC upgrade requirements are increasing the burden on landlords. Many ‘accidental’ landlords simply don’t see the benefit of letting a property out, and many experienced landlords are downsizing their portfolios due to the rising costs involved in an effort to release capital and improve overall profitability.

Is now a good time to sell a buy-to-let property?

Whether now is the right time to sell depends more on personal circumstances and your own goals than it does market seasonality. In our experience, you should weigh up whether the costs and ongoing maintenance are worth the rental yield. If not, then selling may be the better outcome for you.

How have the rules around buy-to-let properties changed?

1. Landlords based outside the UK now face a 2% stamp duty surcharge (as of April 2026). This is in addition to the existing 3% surcharge for anyone buying a second property in the UK. These surcharges are in addition to the standard SDLT rates for purchasing homes above the threshold of £125k, so, if you already own a property anywhere in the world, you will be subject to a 5% stamp duty surcharge on any BTL properties you buy in the UK.
2. The government is expected to increase the Energy Performance Certificate (EPC) requirement for landlords in a bid to achieve its netzero carbon emissions target by 2050. Currently, landlords need to provide an EPC with a rating of at least E and conduct gas-safety checks annually.
   All tenancies must have a valid Electrical Installation Condition Report (EICR) and a new EICR is required every five years. Failure to comply will result in fines of up to £5,000 for a first offence and up to £30,000 for all subsequent offences.
   The cost of bumping an E-rated property to a C rating will typically be more than £17,000.
3. The Renters’ Rights Act (2026) has brought in new protections for tenants and taken control away from landlords. Under the new legislation, evictions need legal reasons, rent increases are limited to once a year and tenants can now challenge increases at tribunals, and it’s easier for tenants to leave of their own accord.
4. A requirement to install carbon monoxide alarms in all rented accommodation was introduced in November 2021. Landlords must also bear the cost of repairing or replacing smoke and carbon monoxide alarms if they are faulty. The regulations around rental properties in England and Wales grow each year, and there is a particular focus on making properties “greener”, all of which means more hassle and expense for buy-to-let investors.
5. Changes to mortgage tax relief have made being a landlord less lucrative, with tax relief for all BTL owners now only 20%, down from effectively 40%.

Had enough of all the red tape surrounding being a landlord? Want to sell your rental property fast? Contact us for a free property valuation and offer from a genuine cash house buyer today.

What landlords are telling us before selling

At House Buyer Bureau, landlords are routinely telling us that:

• The costs and admin burden outweigh the benefits
• Regulatory changes have made it far less profitable and more complicated to be a landlord
• Managing tenants has become far more difficult
• Upgrading properties to meet new EPC standards is expensive
• It’s simply too much hassle

Many accidental landlords who have inherited their relative’s property simply don’t want the added hassle and burden of being a landlord. Many of them just choose to sell.

Gary sold his inherited property as it was costing too much time and money to maintain:

https://youtube.com/shorts/ydqTvOUFPEw?si=GBcIn43UyyIltYfA

Sue sold her rental property to House Buyer Bureau when the tenants moved out, and she didn’t want the hassle or re-letting it.

https://youtube.com/shorts/X68BEYJzYbw?si=BEvaVC0EViIijvyi

Christine sold her unwanted BtL to House Buyer Bureau in just 44 days.

Is buy-to-let still a good investment?

Whether BTL is a worthy investment for you will depend on more than taxes and new government regulations – you’ll need to consider your personal circumstances and what your long-term goals are.

Many professional landlords still stay committed to the rental market as they view it as a long-term investment. There is rising demand amongst renters, fuelled by a lack of rental stock on the market. According to the ONS, rents have increased by 3.3% in the 12 months to July 2026, to an average of £1,388.

Pros of buy-to-let

• You earn a regular income – which can be considerable, depending on your property.
• You’ll still benefit from the property value appreciation over time.
• There is a lot of flexibility and choice when investing in property; you can choose between residential and commercial sectors, and choose specific property types to focus on.
• You can take out insurance to cover some of the issues that can arise when renting property – loss of income, damage, legal costs etc.

Cons of buy-to-let

• Renting and managing property takes a lot of time and effort; it is not a truly ‘passive’ income.
• Changes to tax laws have made it less profitable for high-income earners.
• The introduction of a 2-5% SDLT surcharge has made the initial cost of buying a BTL property considerably higher.
• Any “void periods” (when the property sits empty) will eat into your profit margin, and you’ll need enough to cover the mortgage and council tax without the rental income.
• The cost of maintenance, repairs and refurbishment will eat into your net profit.
• You must comply with relevant regulations and legislation, which are routinely updated, often in the favour of the tenant rather than landlord.
• Higher re-mortgage costs can’t always be offset by increasing in rental payments, due to new laws about when a landlord can increase rent, how often and by how much.
• If property prices fall, there’s a risk of getting into negative equity, and if this happens, you will lose out when selling.

Common issues we see when landlords try to sell

Here at House Buyer Bureau, the biggest issues landlords talk to us about are:

• Empty properties after tenants have moved out
• Inheriting property in poor condition and in areas they don’t know well
• Tenants not complying with terms of contract and refusing access for viewings
• Properties that need EPC upgrades
• Buyers withdrawing after surveys
• Chains getting stuck or collapsing altogether
• Long delays caused by conveyancing

Should I sell my rental property in 2026?

This depends on your personal circumstances and future plans. You should also take into account the current property market – will you be able to achieve a sale price you are happy with?

The latest House Price Index shows that there is still demand for housing, provided it’s priced sensibly – over-egged house prices are the main reason why properties aren’t being sold.

If rising costs, increased tax, tighter regulation and falling returns means it’s no longer viable to be a landlord and you want to sell your house fast, selling to a professional property buyer will provide a quick sale option.

If you’d like to know how much House Buyer Bureau can offer for your Buy-toLet property, get in touch!

Can I sell my buy-to-let property to a family member?

You can sell your property to whoever you choose. But, if you want to sell the property to them for below market value or gift it to them, there will be special legal considerations that are best navigated with a qualified solicitor or conveyancer.

Many people choose to gift a property to a family member to reduce the amount due in inheritance tax. This tax applies to properties worth more than £325,000 (or a combined total of £650,000 for married couples). If your BTL property is valued at more than these thresholds, you could arrange to transfer ownership to a family member via a “deed of gift”.

Provided that you meet the following eligibility criteria:

• There are no outstanding debts secured against the property.
• You, the owner, are of sound mind when you make the decisions to gift the property.
• You are named as the owner in the Land Registry’s proprietorship register.
• You have obtained independent legal advice before transferring the property.

Even if you meet all of these criteria, you’ll need a specialist legal advisor to make sure that you don’t fall into the common pitfalls of gifting property. Remember, if you gift a property:

• You can’t reverse the decision, even if you fall out with the beneficiary.
• You can’t control the future – if you gift your BTL property to a family member who subsequently goes through a divorce, an unintended beneficiary (i.e. their former spouse) could be legally entitled to a proportion of the property.
• Your chosen beneficiary may lose the property, for example, if they have undisclosed debts or financial commitments.

If you choose to transfer ownership of your BTL to a family member, be prepared to relinquish all control over it, just as you would if you sold to an unknown buyer.

Can I sell a buy-to-let with tenants still living there?

Yes, as a landlord, you can sell a BTL property as a tenanted investment or as a vacant property. But, if you choose to sell with sitting tenants, you’ll limit the pool of potential buyers to investors. Vacant properties may also attract a higher sale price than a tenanted one.

If you plan to sell your BTL as a tenanted property, make sure that you communicate with your tenants and keep them updated on the sale process. Taking the time to reassure your tenants and explain what a sale could mean for them will increase the chances of them being helpful and amenable to property viewings or visits from estate agents to photograph their home, which will make your life a lot easier.

Check your tenancy agreement before steaming ahead with marketing the property. It will probably detail your current tenants’ rights, for example, the right to “quiet enjoyment” of their home, which means that you can’t demand they allow people into their home for viewings or any other purpose.

If there is no “break clause” in the agreement, you may need to wait until the end of their tenancy before you can take the property back and begin marketing it. If you’re not sure about how to proceed, speak to a solicitor.

Advantages of selling a property with a tenant in-situ

• Keep earning a rental income until the sale is complete.
• Investor buyers will be attracted to the prospect of having a rental income from day one.
• If the sale falls through, you will still have the rental income to fall back on.
• Generally, only investment buyers will be interested in a tenanted property, and they are experienced buyers with ready access to finances.
• Investment purchases often complete more quickly than sales to non commercial buyers.

Can you sell to the tenants?

Out of courtesy, before marketing elsewhere, you should always offer the property to the current tenants. Approaching them, being upfront about your plans to sell and asking if they have any interest in buying the property is best practice when dealing with tenants in situ, as it allows them a fair chance to stay in their current home before it’s offered to others.

Notifying your tenants in advance

Along the same lines, if your tenants aren’t interested in buying the property, and you then want to sell a vacant property, the best practice is to still keep them up to date with your plans and progress in advance of the end of their tenancy. They should have ample time to make other living arrangements and plans before having to vacate the property.

One way to make this work for everyone is to notify the tenants early but to allow their tenancy to continue for as long as possible, perhaps on a monthly basis at the end of their current tenancy, while the property goes up for sale. This means you get to keep collecting rent instead of having the property sat empty for months on end. After all, you don’t know how long the process of selling your property could take.

How much tax will I pay when I sell a buy-to-let property?

Capital Gains Tax (GCT) is due on any profit you make from selling or disposing of an asset (such as property) that has increased in value. If your rental property has increased in value since you bought it, you may have to pay CGT when you sell it.

Speak to a solicitor or conveyancer with expertise in buy-to-let properties to find out if CGT is due and, if so, how much you need to pay. CGT is charged at 18% on the part of the gain that falls within your unused basic rate band, and 24% on the part that falls into the higher rate band.

If you are selling your main residence, you will probably qualify for Private Residence Relief, and no CGT will be due. If the property was your main residence for a period, but you also rented it out for some time, you will pay CGT only for the period when the property was rented out.

Read our blog, “What are the taxes on selling a house?” for more information about paying capital gains tax on property.

What is the 36-month rule for buy-to-let properties?

If the BTL property you are selling was previously your main residence, the period of time when you lived there is exempt from CGT, together with the last 36 months of ownership (even if you did not live there in the final three years).

What’s the process for selling a rental property in the UK

1. Communicate with tenants in situ

If there are tenants living in the property when you decide to sell, give them plenty of notice about your intentions and keep the lines of communication open.

As mentioned, renters may have the right to refuse access to the property for estate-agent visits or viewings, so having them on side will help keep the sales process moving. Some landlords incentivise existing tenants to tidy up before viewings and accommodate potential buyers’ preferred viewing times by offering the last month’s rent free.

2. Carry out repairs and improvements

As with selling a private residential home, the appearance and upkeep of a rental property will affect how long it takes to sell. In particular, a property’s kerb appeal, that is, how it looks from the outside, can make the difference between making and losing a sale.

This is another reason to maintain a positive relationship with any tenants in situ. If you need to access the property to carry out repairs or update the decor, your tenants must agree on a time when tradespeople can enter the property to carry out the necessary works.

3. Research the market

What are renters looking for in properties in the current market? Open-plan living? A private garden? A home office? If your rental property has any of these features, make the most of them. Tidy up a messy garden and add popular features – like fencing to provide privacy. Create an office space and make sure there are plenty of conveniently located power sockets. It’s worth speaking with local estate agents to find out what’s at the top of buyers’ wish lists.

4. Consider selling at auction

Selling via a traditional or modern auction is generally quicker than an on market sale with an estate agent. The average time it takes to sell a house via the traditional route is around four months, whereas selling at auction takes just 28 to 56 days. However, there’s no guarantee your property will sell, and auction house fees can be high. You may not get these back if your property doesn’t sell.

5. Sell to a cash house buying company

Selling to a genuine cash house buying company is the only way to secure a guaranteed sale fast. House Buyer Bureau has the funds to buy any property in the UK in as little as seven days. We buy all types of property, regardless of their condition, and we’ll work to a timescale that suits you, so if you need a little more time, for example, to allow tenants to move out – no problem!

Sell your property fast with House Buyer Bureau

Need help selling your property fast? At House Buyer Bureau, we make selling your property quick and easy. As your dedicated house buying specialists, we will manage the whole sales process – which means no estate agent or legal fees, no viewings, no delays and no hassle.

FAQs

Chris

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

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