@Birdy
and just to confirm, for the period during which the period mustnt be relet or marketed below is set out exactly what a LL can’t do during the period it mustnt be re-let and during the period it mustnt be marketed - and the fines/penalties [see shelter page extract below which gives every source Shelter Legal - Possession when a landlord wants to sell or move in - Shelter England ]
best
--
When the property must not be re-let
During the restricted period, a private landlord must not:[13]
A private landlord who has used ground 1 can re-let the property during the restricted period to:[14]
A qualifying family member includes the family members listed in ground 1.
When the property must not be marketed
During the restricted period, a landlord must not market or authorise another person to market the property to be:[15]
A person markets the property if they:[16]
-
advertise that a property is or may be available to be occupied
-
inform any other person that the property is or may be available, in the course of letting agency work
When the restrictions do not apply
The restrictions do not apply if the landlord used ground 1A and the letting or marketing is to a licensee who has agreed to:[17]
-
purchase the landlord’s interest in the property
-
lease the property for a term of more than 21 years without a break clause, and the license to occupy is granted in anticipation
Shared ownership
The restrictions do not apply after the landlord uses ground 1A for some shared ownership properties where the landlord intends to assign the shared ownership lease.[18]
If the tenancy existed before 1 May 2026, the landlord must give a written statement to the tenant that the landlord is a shared owner by 31 May 2026.[19]
Where the tenancy starts on or after 1 May 2026, the landlord must give the written statement to the tenant before the tenancy starts.[20]
When a landlord can receive a financial penalty
A landlord or their representative could be subject to a financial penalty for breaching the rules for ground 1 or ground 1A.[21]
Legal representatives are exempt from enforcement action.[22]
Financial penalties for misuse of grounds
A landlord can be subject to a financial penalty if both:[23]
-
they rely on a ground where they do not reasonably believe they can gain possession
-
the tenant gives up the tenancy within 4 months of the notice, without a possession order
For example, the landlord serves a notice on ground 1 or ground 1A, knowing that the criteria for the ground is not met, and the tenant leaves the property during the notice period.
The maximum penalty is £7,000.[24]
When a financial penalty cannot be imposed
A financial penalty cannot be imposed if:[25]
-
the person has already been convicted of an offence for the same conduct
-
criminal proceedings have been started but not concluded
-
criminal proceedings have concluded and the person was not convicted
A local authority must have regard to any government guidance when imposing financial penalties.[26]
When a landlord commits an offence
A landlord might commit a criminal offence if they breach the rules on ground 1 or ground 1A.
A person who is prosecuted and found guilty of one of these offences can be fined up to a maximum of £40,000.[27]
Re-letting or marketing during the restricted period
A landlord or their representative commits an offence if they re-let or market the property during the 12 month restricted period.[28]
It is a defence for a person other than the landlord who markets or authorises a person to market the property if they can show they took all reasonable steps to avoid contravening it. For example, a letting agent who was not aware that the property was in the restricted period.[29]
A person does not commit an offence if they only publish an advert or provide a means by which a prospective landlord and tenant can communicate.[30] For example, online property portals.
Knowingly and recklessly misusing a possession ground
A landlord or their representative is guilty of an offence where both:[31]
-
they rely on a possession ground, either knowing or being reckless as to whether the landlord can gain possession on the ground
-
the tenant surrenders the tenancy within four months of the notice, and no possession order is made
Where a financial penalty has been imposed
A landlord or their representative is guilty of an offence where:[32]
-
a financial penalty has been imposed and the final notice imposing the penalty has not been withdrawn
-
the conduct causing the penalty continues after the period of 28 days, starting with the day after the penalty was imposed, or if the person appeals against the final notice, the day after the appeal is determined or withdrawn
Repeated breaches within five years
A landlord or their representative is guilty of an offence where:[33]
Financial penalties for offences as an alternative to prosecution
A local authority can impose a financial penalty as an alternative to prosecution if it is satisfied beyond reasonable doubt that the landlord or their representative is guilty of an offence.[34]
The offences include:
-
re-letting the property in the restricted period after using ground 1 or ground 1A
-
marketing the property in the restricted period after using ground 1 or ground 1A
-
continued or repeated breaches of tenancy law
The maximum amount of a financial penalty as an alternative to prosecution is £40,000.[35]
Find out more about local authority enforcement duties.
Rent repayment orders for ground 1 or 1A breaches
An occupier or local authority can apply for a rent repayment order against a landlord who has:[36]
A tenant or local authority can apply for up to a maximum of two years’ rent. The application must be made within two years of the offence.
Find out more about rent repayment orders.
Last updated: 1 May 2026
Shelter Legal - Possession when a landlord wants to sell or move in - Shelter England
