Renters' Rights Act 2025, Phase 1 commencement
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England, Probate, Executor Obligations, Tenancy, CGT, Inheritance Tax

Probate & Rental Property UK 2026, Executor Guide

Administering a rental property through probate 2026: executor obligations to tenants, tenancy continuation, Section 48 notice, income tax during administration, CGT on inherited property, and using Ground 1A to sell.

9 min readUpdated 6 June 2026Last reviewed: 2 September 2026ProbateInheritanceCGTExecutor
Written and reviewed by· Founder, LetSafe UKLast reviewed: 2 September 2026

When a landlord dies, their rental properties pass to the estate and the tenancy continues uninterrupted. The executor or administrator becomes the landlord for all purposes -- even before the grant of probate is obtained. The Renters' Rights Act 2025 (from 1 May 2026) applies equally to estates: Section 21 is abolished and only Schedule 2 grounds are available to end the tenancy.

Executor's first steps after a landlord dies

Notify the tenant of the change of landlord. Serve a new Section 48 notice (an address in England or Wales for serving notices on the estate). Locate the tenancy deposit and verify protection scheme registration. Check when the next gas safety certificate and EICR are due. Open an estate bank account for rent collection.

Executor obligations during probate

  • Section 48 notice: must be served on the tenant -- until served, no rent is legally due from the tenant
  • Gas safety certificate: annual check obligation continues uninterrupted
  • Section 11 LTA 1985 repair obligations pass to the estate immediately
  • HMO and selective licensing: executor must notify the local housing authority of the change of landlord
  • No Section 21 notices from 1 May 2026 -- use Schedule 2 grounds only

Regaining possession -- Ground 1 and 1A

  • Ground 1: beneficiary intends to use the property as their only or principal home -- 4 months' notice, 12-month re-let restriction
  • Ground 1A: estate intends to sell with vacant possession -- 4 months' notice, tenancy must be at least 12 months old
  • Selling with tenant in situ: property sold while tenancy continues; buyer takes over as landlord (typically 10-25% discount to vacant possession value)
  • Court-ordered sale does not override the possession process -- Ground 1A must still be followed

Tax during estate administration

  • Income tax: estate rental income taxed at 20% basic rate (no personal allowance available to estates)
  • Self Assessment return required for the estate covering the administration period
  • CGT uplift on death: property valued at probate value; gain accrued during deceased's ownership is wiped out
  • CGT annual exempt amount available to the estate in the year of death and two following tax years
  • CGT rate on residential property sale: 18% (basic) or 24% (higher) from 6 April 2024
  • Finance Act 2023: no-gain/no-loss CGT treatment for transfers to beneficiaries within 3 years of tax year of death
Primary sources

This page is drafted against the legislation below. Always check the current text of the law before acting.

Frequently asked questions

Does a tenancy end when the landlord dies?+

No. A residential tenancy passes to the estate and continues on the same terms. The executor or administrator steps into the landlord's shoes immediately, including obligations for rent collection, maintenance, and regulatory compliance.

Is CGT payable when a rental property is inherited?+

Not at the point of inheritance -- there is an uplift to probate value. CGT is only payable when the property is subsequently sold, calculated on the gain between probate value and sale price.

Templates recommended in this guide

Put this guide into practice, get the Landlord Annual Compliance Checklist from the LetSafe shop, the regulation-current pack that matches this guide.

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