A 12-month restriction under the Renters’ Rights Act 2025 can prevent a landlord from advertising or re-letting a property after recovering possession through Ground 1 or Ground 1A.
These grounds apply when the landlord or a close family member intends to move in, or when the landlord intends to sell.
Hamptons has estimated that if the rules had applied to landlord properties listed for sale in 2025, between 80,000 and 100,000 unsuccessful sales could have been prevented from returning immediately to the rental market.
However, this does not mean 100,000 homes are currently empty. It is a retrospective, counterfactual estimate based on previous sales data, not an official government forecast or a confirmed count of vacant properties.
The restriction also does not prevent a landlord from continuing to market or sell the property.
Key Renters’ Rights Act Letting Ban Figures:
| Key point | Current position |
| Main reforms took effect | 1 May 2026 |
| Area covered | England |
| Relevant possession grounds | Ground 1 and Ground 1A |
| Ground 1 | Landlord or close family member intends to occupy |
| Ground 1A | Landlord intends to sell |
| Minimum notice period | Four months |
| Initial tenant protection | Grounds 1 and 1A cannot require possession within the first 12 months of a tenancy |
| Re-letting restricted period | 12 months |
| Potential maximum financial penalty | Up to £40,000 as an alternative to prosecution |
| Estimated homes potentially affected | 80,000 to 100,000, based on Hamptons’ application of the rules to 2025 sales data |
| Landlord properties failing to sell in 2025 | 51% |
| Flats failing to sell | 60% |
| Status of the 100,000 figure | Industry estimate, not a confirmed total |
What is the Renters Rights Act Letting Ban?
The phrase “Renters Rights Act letting ban” generally refers to the restriction on re-letting or remarketing a property after a landlord uses certain possession grounds.
It is not a general prohibition preventing landlords from renting out homes. Instead, it is designed to stop a landlord from removing a tenant by claiming that the property will be sold or occupied by the landlord, only to advertise it for rent again shortly afterwards.
The main tenancy reforms under the Renters’ Rights Act 2025 came into force for England’s private rented sector on 1 May 2026.
They abolished Section 21 “no-fault” evictions and require landlords to rely on an appropriate Section 8 possession ground when seeking to recover a property.
The government’s official guide to the Renters’ Rights Act explains that landlords can still recover properties for legitimate reasons, including selling or allowing the landlord or a close family member to move in.
What is Ground 1?
Ground 1 can be used when the landlord or a qualifying close family member genuinely intends to occupy the property as their only or main home.
A landlord cannot require the tenant to leave under this ground during the first 12 months of the tenancy. At least four months’ notice must normally be provided.
What is Ground 1A?
Ground 1A is the mandatory possession ground used when a landlord genuinely intends to sell the property.
As with Ground 1, the landlord must generally give at least four months’ notice, and the notice cannot require possession before the tenancy has been running for 12 months.
The landlord may serve the notice earlier, but its expiry date must fall after the initial protected period.
If the tenant does not leave when the notice expires, the landlord must apply to court and provide evidence that the possession ground applies. A notice alone does not legally evict the tenant.
How Does the 12-month Re-letting Restriction Work?
After relying on Ground 1 or Ground 1A, the landlord is normally prevented from:
- granting a new short residential tenancy;
- advertising or otherwise marketing the property as available to rent;
- instructing an agent to find a new tenant; or
- granting certain paid licences to occupy the property.
Government guidance confirms that remarketing includes placing an online rental advertisement or carrying out letting agency work that presents the property as available to let.
The restriction is intended to make landlords’ stated reasons for possession meaningful. A landlord who recovers a home by claiming an intention to sell should not ordinarily be able to reverse that decision immediately after the tenant has left.
When Does the Restricted Period Start?
The 12-month period does not necessarily begin on the day the possession notice is served.
Where no court claim is needed, it generally runs from the expiry date stated in the possession notice. Where possession proceedings are started, the relevant date can be the date of the court application if that is later.
The National Residential Landlords Association has therefore advised that a landlord using Ground 1A may need to allow at least 16 months from serving the notice before being free to re-let: four months’ notice followed by the 12-month restricted period.
A later court application may extend the practical timeline further.
Landlords should calculate the period carefully and obtain legal advice before advertising the property again.
Why Could Unsuccessful Sales Leave Rental Homes Empty?
A landlord using Ground 1A usually seeks vacant possession because owner-occupiers may be unwilling or unable to purchase a property with a sitting tenant.
Once the tenant has left, the landlord can place the property on the sales market.
The commercial difficulty arises if:
- the property fails to attract a buyer;
- an agreed transaction collapses;
- the landlord withdraws the property from sale; or
- the achievable price is substantially below expectations.
Before the reforms, a landlord in this position might have returned the home to the private rental market. Under the new restricted-period rules, that option may not be immediately available.
The property can continue to be marketed for sale, but the landlord may have to cover mortgage payments, service charges, council tax, insurance, utilities and maintenance without rental income while the restriction remains in force.
Where Does the 100,000 Empty Homes Estimate Come From?
The figure originates from analysis by estate and letting agency Hamptons using data on landlord properties marketed for sale during 2025.
Hamptons found that:
- 51% of homes listed for sale by landlords in 2025 failed to sell;
- the unsuccessful-sale rate increased to 60% for flats; and
- applying the new restriction to those historic listings would have left an estimated 80,000 to 100,000 homes unable to return immediately to the rental market.
The warning was reported in The Telegraph’s coverage of the re-letting restriction and is supported by Hamptons’ published market analysis.
Hamptons’ research also found that previously rented properties represented 9.2% of homes listed for sale in June 2026, down from 11.3% in June 2025.
At the same time, landlords accounted for 10.2% of property purchases, meaning landlord purchases exceeded the share of former rental homes listed for sale for the first time since 2019.
Is the 100,000 Figure a Confirmed Number of Empty Homes?
No. The figure should not be presented as a confirmed number of homes currently standing empty.
It is an estimate of what might have happened if the new rules had applied to landlord sales attempted in 2025.
Actual outcomes under the legislation will depend on several factors, including:
- how many landlords use Ground 1A;
- how many tenants leave following the notice;
- how many properties subsequently fail to sell;
- whether landlords continue marketing unsuccessful properties for sale;
- whether an exception applies; and
- whether landlords become more cautious about attempting to sell.
The estimate is nevertheless significant because it illustrates the scale of the potential exposure in a slow sales market.
Why Are Flats Particularly Exposed to the Letting Restriction?
Hamptons found that approximately 60% of flats marketed by landlords in 2025 failed to sell, compared with a lower overall unsuccessful-sale rate of 51%.
In June 2026, 24.4% of flats marketed for sale had previously been rented, compared with 7.8% of houses. A typical flat also took around 85 days to go under offer, compared with 59 days for a house.
Several factors can make flats more difficult to sell:
- increasing service charges;
- uncertainty about major building works;
- fire and building-safety documentation;
- shorter remaining lease terms;
- restrictions imposed by freeholders;
- weaker demand from owner-occupiers; and
- affordability pressures affecting first-time buyers.
This creates a greater risk that a landlord could recover possession through Ground 1A but fail to complete a sale before deciding that renting would have been the more viable option.
Can Landlords Still Sell During the Restricted Period?
Yes. The re-letting rule does not prohibit the property from being advertised or sold.
A landlord who has used Ground 1A may continue marketing the property to potential purchasers throughout the restricted period. The restriction concerns marketing or granting occupation for rent, not the sale of the property.
This distinction matters because some reports have described affected properties as being unable to be “sold or rented”. The legislation does not impose a 12-month ban on selling.
The practical problem is that a home may remain unsold while the landlord is simultaneously prevented from returning it to the conventional rental market.
What Happens if the Tenant Chooses to Leave Voluntarily?
The restriction is linked to the landlord’s use of Ground 1 or Ground 1A, not simply to the fact that the property later goes up for sale.
Where a tenant independently gives valid notice and ends the tenancy without the landlord relying on one of those possession grounds, the landlord can generally sell the property and later decide to re-let it without triggering the same restricted period.
Similarly, a mutually agreed surrender should be distinguished from a tenant leaving because the landlord has served a Ground 1 or Ground 1A possession notice. Landlords should keep clear written records showing how and why the tenancy ended.
Are There Exceptions to the 12-month Letting Ban?
Government guidance identifies circumstances in which the restriction may not apply or may end early.
These include situations where:
- the landlord or a close family member moves into the property as their only or main home;
- a person is granted a licence while agreeing to purchase the property or take a lease lasting more than 21 years;
- the new tenancy or lease being marketed will last for more than 21 years; or
- a court subsequently grants possession on a ground other than Ground 1 or Ground 1A.
There is also a specific conditional exemption for some shared owners who are subletting their homes and using Ground 1A. Shared owners must complete prescribed notification and marketing steps to rely on that exemption.
Exceptions are fact-specific. A landlord should not assume that an unusual letting arrangement, holiday let or paid licence automatically avoids the restriction.
What Penalties Could Apply for Re-letting Too Early?
Breaching the re-letting or remarketing restriction can be treated as an offence.
A landlord, letting agent or another person acting on the landlord’s behalf could face a financial penalty of up to £40,000 as an alternative to prosecution. Local authorities have enforcement powers and can investigate advertisements, letting activity and other evidence.
Potentially prohibited conduct includes:
- publishing a rental listing during the restricted period;
- instructing a letting agent to find a tenant;
- entering into a new prohibited tenancy; or
- attempting to disguise a conventional letting as another paid occupation arrangement.
Letting agents should therefore ask whether Ground 1 or Ground 1A was previously used before accepting instructions to market a recently vacant property.
Could the Restriction Reduce the Supply of Rental Homes?
The measure could affect supply in two different ways.
First, a failed sale could leave a previously rented property temporarily outside both the occupied rental market and the completed sales market. This is the scenario behind the 80,000 to 100,000 estimate.
Second, the financial risk may persuade some landlords not to sell. An owner may decide to retain an existing tenant rather than risk an unsuccessful sale followed by a prolonged period without rental income.
Hamptons’ latest figures suggest that landlord sales have already slowed. However, it would be premature to attribute the change entirely to the Renters’ Rights Act.
Higher mortgage costs, previous tax changes, regional property values and achievable rental yields have also influenced landlords’ decisions.
The overall effect on rental supply will therefore depend on how landlords, buyers, lenders and tenants respond over a longer period.
Could the Letting Restriction Push Up Rents?
A reduction in available rental properties can place upward pressure on rents where tenant demand remains strong. However, the 12-month restriction is only one of many factors affecting rent levels.
Rental prices are also influenced by:
- mortgage and refinancing costs;
- landlord taxation;
- local wages and employment;
- population and household growth;
- new housing construction;
- property maintenance costs; and
- regional differences in supply and tenant demand.
Hamptons recorded an average monthly rent of £1,392 for a newly let home across Great Britain in June 2026, representing annual growth of 1.6%. That was the strongest annual growth recorded for new lets in 13 months, although it does not establish that the Renters’ Rights Act caused the increase.
What Should Landlords Consider Before Using Ground 1A?
Using Ground 1A should be treated as a significant and potentially difficult-to-reverse decision.
Before serving notice, a landlord may need to consider:
- whether the property is realistically priced;
- likely demand from owner-occupiers and investors;
- how long comparable homes are taking to sell;
- whether the property has unresolved leasehold or building-safety issues;
- mortgage and insurance costs during a void period;
- the evidence needed to demonstrate a genuine intention to sell; and
- the date on which the restricted period will end.
Landlords should also make sure that the tenant’s deposit has been protected correctly and that all other legal requirements connected with possession proceedings have been met. Failure to follow the correct process may delay or prevent possession.
Practical Example: A Property Fails to Sell
A landlord with a tenancy that has already run for more than 12 months serves a valid Ground 1A notice on 1 June 2026.
The four-month notice expires on 1 October 2026, and the tenant leaves on that date. The property is advertised for sale, but no acceptable offer is received.
Assuming no court proceedings or relevant exception changes the dates, the landlord may be prevented from marketing or granting a new rental tenancy until 1 October 2027. The home can remain on the sales market during that period.
Practical Example: Court Proceedings Are Required
A tenant remains after the Ground 1A notice expires, so the landlord starts possession proceedings on 15 November 2026.
Because the court application occurred later than the notice expiry date, the restricted period may run from that later date. The landlord could therefore remain unable to re-let until 15 November 2027, even if possession is recovered earlier.
Practical Example: The Tenant Gives Notice
A tenant independently gives two months’ notice and leaves. The landlord then tries to sell the property but later changes course after receiving no acceptable offers.
Because the landlord did not use Ground 1 or Ground 1A to obtain possession, the specific 12-month restricted period would not ordinarily be triggered.
What Does the Restriction Mean for Tenants?
The rule gives tenants greater protection against landlords misusing the selling or occupation grounds.
A tenant asked to leave under Ground 1A can expect the landlord to have a genuine intention to sell. If the same property is immediately advertised for rent after the tenant leaves, that may indicate a potential breach.
Tenants who suspect that a property has been unlawfully re-let or remarketed can keep evidence such as:
- screenshots of rental advertisements;
- dates and details from the possession notice;
- messages from the landlord or agent; and
- information suggesting that a new tenant has moved in.
Concerns can be reported to the relevant local authority’s private-sector housing or tenancy enforcement team.
Final Takeaway
The Renters Rights Act letting ban is more accurately described as a targeted 12-month re-letting and remarketing restriction. It applies when landlords use Ground 1 to recover a home for occupation or Ground 1A to recover it for sale.
The warning that as many as 100,000 homes could be left empty is based on Hamptons’ analysis of unsuccessful landlord sales in 2025.
It illustrates a genuine commercial risk, particularly for landlords selling flats in slower regional markets, but it is not a confirmed count of homes currently standing vacant.
The restriction does not prevent a property from being sold. Its practical effect is that a landlord who removes a tenant to pursue a sale may be unable to return the property quickly to the rental market if that sale fails.
For landlords, the decision to serve a Ground 1A notice now requires careful assessment of sales demand, pricing, legal compliance and the financial cost of an extended void period.
For tenants, the rule provides an important safeguard against being removed from a home under a selling or occupation claim that is not followed through.
Frequently Asked Questions About the Renters Rights Act Letting Ban
When did the Renters’ Rights Act letting restriction start?
The main private rented sector tenancy reforms, including the restrictions associated with Grounds 1 and 1A, took effect in England on 1 May 2026.
How long is the Ground 1A re-letting ban?
The restricted period lasts 12 months. It generally runs from the expiry of the possession notice or from a later date on which possession proceedings are started.
Can a landlord advertise the property for sale?
Yes. A property can continue to be marketed for sale during the restricted period.
Can a landlord advertise the property for rent before the 12 months end?
Normally no. Advertising or otherwise marketing the property as available to rent can itself constitute a breach, even if no new tenancy is ultimately agreed.
Does the restriction apply when the tenant leaves voluntarily?
It does not ordinarily apply where the tenant independently ends the tenancy and the landlord has not used Ground 1 or Ground 1A to obtain possession.
Can the landlord use the property as a holiday let?
Landlords should not assume that short-term occupation avoids the restriction. Paid licences and other arrangements may be covered, depending on their legal structure. Professional advice should be obtained before granting any form of occupation during the restricted period.
What happens when a buyer pulls out?
The landlord may continue trying to sell the property. However, a collapsed transaction does not automatically cancel the re-letting restriction.
Is the 100,000 homes figure from the government?
No. It comes from Hamptons’ analysis of landlord properties listed for sale in 2025. It is not an official government estimate.
Are letting agents responsible for checking the restriction?
Agents and other people acting on a landlord’s behalf can face enforcement action. Agents should conduct appropriate checks before advertising a recently recovered property.
Can a landlord avoid the rule by serving a different possession ground?
A landlord must only rely on a ground that genuinely applies and must provide the required evidence. Knowingly or recklessly using an inappropriate ground can result in enforcement action.
Important Note:
Editorial Note: This article has been reviewed against official Renters’ Rights Act 2025 legislation and Ministry of Housing, Communities and Local Government guidance.
Legal information disclaimer: This article provides general information about housing legislation in England and does not constitute legal, financial, mortgage or tax advice.
The application of possession grounds and restricted periods depends on the facts of each case. Landlords, tenants and agents should consult the current legislation, official government guidance or an appropriately qualified housing professional before acting.
