Landlords Are Selling to Landlords - and It Could Be the Smartest Route
The buy-to-let market is shifting, but good opportunities are still around. With more landlords selling to other landlords, a tenanted sale could help avoid the need for vacant possession using Ground 1A under the Renters’ Rights Act. This has many benefits; protecting rental income, reducing disruption and helping tenants stay in their homes.
The buy-to-let market is changing, and, despite the usual negative media headlines, it is not disappearing for good!
Recent figures reported by Estate Agent Today show that the share of homes bought by landlords has climbed to its highest level since 2016.
Between January and April 2026, landlords accounted for 13.3% of property purchases across the UK, with a noticeable rise in landlords buying homes that were already let. In fact, 23% of homes bought by landlords this year had previously been rental properties.
To be honest, this does not surprise me. The private rental sector is going through one of its biggest periods of change in a generation, and while some landlords are choosing to exit, others are actively growing. The result is a quieter but very important shift: landlords selling directly to other landlords.
And for many, that could be a far better outcome than selling with vacant possession.
Why landlord-to-landlord sales are increasing
Higher mortgage costs, tax pressure and the Renters’ Rights Act have encouraged some smaller landlords to review whether they still want to remain in the market. But where one landlord sees pressure, another may see opportunity.
Experienced portfolio landlords are often better placed to absorb regulation, spread costs and take a longer-term view. They may also prefer buying a property that is already let, especially where the tenant is settled, the rent is clear and the property has a proven rental history.
That creates a more sensible route for landlords who want to sell without necessarily disrupting the tenant, losing rental income during the sales process or triggering unnecessary possession proceedings.
The Ground 1A issue: why this matters
Under the Renters’ Rights Act, landlords who want to recover possession in order to sell will use Ground 1A. Ground 1A can be used where a landlord intends to sell the property, but it comes with important conditions, including a four-month notice period and restrictions around being able to give this notice within the first 12 months of a tenancy.
The crucial point is this: Ground 1A is only needed where the landlord wants possession from the tenant in order to sell.
If a landlord sells the property to another landlord with the tenant remaining in place, the sale can often proceed without needing to remove the tenant at all. In practical terms, a landlord-to-landlord sale may negate the need to use Ground 1A, because the buyer is purchasing the property as an ongoing rental investment rather than requiring vacant possession.
That matters because once Ground 1A has been used, there are restrictions on re-letting or marketing the property to let during the restricted period. After using Ground 1A, the restricted period starts when the Section 8 notice is served and ends 12 months after the notice period ends; during that period, landlords must not re-let or market the property to let.
So, if a landlord serves Ground 1A, the tenant leaves, and the sale falls through, the landlord may be left with an empty property, no rental income and restrictions on putting it back on the rental market.
A landlord-to-landlord sale can help avoid that problem.
Better for landlords. Better for tenants. Better for the rental market.
This route can create a more balanced outcome for everyone.
For the selling landlord, it may mean continued rent up to completion, fewer void periods, less disruption and a smoother sale process.
For the buying landlord, it provides immediate rental income and a known tenancy position.
For the tenant, it may mean they can remain in their home rather than being asked to leave simply because the owner has decided to sell.
In a rental market where supply is already under pressure, keeping good homes in the private rented sector is important. Every property sold out of the rental market is one less home available to tenants. But when landlords sell to landlords, the property remains part of the rental supply. That is a more collaborative solution, and collaboration is exactly what the market needs right now.
Should every landlord sell this way?
Not always.
Some properties will achieve a better result with vacant possession, particularly if they appeal strongly to first-time buyers or owner-occupiers. Others may be more attractive to investors because of their yield, location, tenant profile or long-term rental potential.
The key is not to make assumptions.
Before serving notice, before relying on Ground 1A, and before deciding that selling means removing the tenant, landlords should take proper advice. The right strategy depends on the property, the tenancy, the rent, the likely buyer profile and the landlord’s wider financial position.
At Cope & Co., we help landlords look at the whole picture, not just the sale price, but the route that gives the best outcome with the least unnecessary risk.
Thinking of selling a tenanted property in Derby?
If you are a landlord considering your next move, do not assume your only option is to evict, sell empty and start again. There may be another landlord already looking for exactly the kind of investment you own.
Our team can advise on the best route for your property, whether that is a landlord-to-landlord sale, a traditional open-market sale, or a wider portfolio review.
For clear, practical advice on Landlord Services in Derby, Buy to Let in Derby or Property Management in Derby as well as selling tenanted property, speak to me here at Cope & Co.
We are here to help landlords move forward with confidence.
