Housing Minister admits government has not assessed impact of 12-month re-letting ban

The Housing Minister has admitted the government has not carried out an assessment of the impact of banning landlords from re-letting homes if a sale falls through.

Under the Renters’ Rights Act, landlords who evict tenants in order to sell a property, but whose sale then collapses, must wait 12 months before re-letting it.

In a written parliamentary question, the Conservatives asked whether the government had conducted an assessment of the impact this rule could have on the number of empty homes.

My Department has made no such assessment

Shadow Housing Secretary James Cleverly asked: “To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential impact of provisions in the Renters’ Rights Bill on the number of empty homes, in the context of the ban on re-renting homes after a home has been vacated for sale.”

Housing Minister Matthew Pennycook admitted the government have not carried out an assessment.

He said: “My Department has made no such assessment. Landlords making use of new mandatory possession ground 1A (sale of dwelling-house) will be expected to sell their property with vacant possession as intended.

“To prevent abuse of this ground, landlords will not be able to market or re-let their property for twelve months after using the selling ground. This will remove the financial incentive to landlords from misusing the grounds and evicting a tenant with the intention to re-let at a higher rent.”

Despite a last-minute attempt in the House of Lords to reduce the period from twelve months to six months, the amendment ultimately failed.

The Renters’ Rights Act has since gained Royal Assent and will now become law. However, the government has not yet confirmed an exact timeline for its implementation.

What responsible landlords should know

The Renters’ Rights Act now prevents landlords from re-letting a property for twelve months after evicting tenants under Ground 1A, where the stated intention was to sell. The absence of a government impact assessment leaves uncertainty over how this will affect vacant stock levels and cash flow for those whose sales collapse. Responsible landlords will need to prepare for longer void periods and demonstrate genuine sales activity should their plans change.

What this means for you

A property repossessed for sale but not sold cannot be re-let for twelve months, even if the transaction falls through.

Lenders and insurers may request confirmation that the property is genuinely being marketed for sale before approving related decisions.

The Act’s enforcement approach remains to be detailed, so record-keeping and evidence of sales intent will be essential.

Practical steps (do now)

Keep dated marketing materials, sales correspondence, and conveyancer records showing genuine efforts to sell.

Review mortgage terms to confirm whether extended vacancy periods affect your lending conditions or insurance cover.

Update your financial projections to include potential twelve-month voids in worst-case scenarios.

Discuss with your agent whether to adjust your marketing strategy to minimise time on the market.

Keep copies of all tenancy termination notices and any advice received from solicitors or letting agents.

Good practice that reduces stress

Maintaining a clear audit trail protects credibility with regulators, lenders, and tenants alike. Landlords who can show their commercial reasoning and proper documentation will navigate the new rule with fewer disputes and greater confidence in their compliance.