The tenancy does not end when the landlord dies. The tenancy agreement transfers automatically to the deceased landlord's estate, and the executor (if there is a will) or administrator (if there is no will) steps into the landlord's shoes for all purposes — including collecting rent, maintaining the property, and complying with housing regulations — while probate is obtained.
The Renters' Rights Act 2025 (from 1 May 2026) applies to estates just as it applies to individual landlords. An executor who inherits a post-1 May 2026 tenancy cannot serve a Section 21 notice (abolished). They can only regain possession using the Schedule 2 grounds — including Ground 1 (the beneficiary intends to use the property as their only or principal home) and Ground 1A (the estate intends to sell the property).
What happens to a tenancy when a landlord dies?
The tenancy does not automatically end — it passes to the estate:
- The tenancy survives death: A residential assured periodic tenancy is not terminated by the death of the landlord. It passes to the estate and continues on the same terms
- Executor steps in as landlord: The executor (named in the will) or administrator (appointed by the probate court where there is no will) takes on the landlord's obligations immediately, even before the grant of probate or letters of administration is obtained
- Rent continues to be due: The tenant must continue to pay rent, and the estate is entitled to receive it. The executor can open an estate account to receive rent during the administration period
- Maintenance obligations continue: The obligation to repair (Section 11, Landlord and Tenant Act 1985) passes to the estate immediately. Executors who fail to carry out urgent repairs risk enforcement action
- Deposit protection: The tenancy deposit already in a protection scheme remains protected. The executor should check which scheme holds the deposit and ensure they are registered as the new landlord contact
- Where the deceased landlord was a sole trader (not a company), all licensing requirements (HMO, selective, additional) also pass to the estate. The executor should notify the local housing authority promptly
Executor obligations to tenants during probate
Executors must comply with all landlord obligations throughout the estate administration:
- Section 48 notice: The executor must serve a new Section 48 notice (Housing Act 1988) on the tenant informing them of an address in England or Wales where notices can be served. Until a valid Section 48 notice is served, no rent is legally due — it is suspended, not waived
- Right to rent checks: If the tenancy was granted before 1 December 2014, a right-to-rent check was not required. However, any new tenancy granted by the executor during administration must comply with current right-to-rent obligations
- Gas safety certificate: The annual gas safety check obligation continues uninterrupted. The executor must arrange a gas safety inspection if one falls due during the administration period
- EICR and EPC: Existing certificates remain valid. If the EICR or EPC expires during administration, the executor must arrange renewal before any new tenancy is granted
- Renters' Rights Act 2025 compliance: Executors cannot serve a Section 21 notice on or after 1 May 2026. If the estate wishes to regain possession, it must use the appropriate Schedule 2 ground
Regaining possession during probate — Ground 1 and 1A
The estate can seek possession during administration using these grounds:
- Ground 1 (beneficiary moving in): If a beneficiary of the estate intends to use the property as their only or principal home, Ground 1 is available. The 4-month notice period applies. The beneficiary must genuinely intend to move in — they cannot use Ground 1 and then immediately let it out to someone else (12-month re-let restriction applies)
- Ground 1A (sale with vacant possession): If the estate intends to sell the property with vacant possession, Ground 1A is available. The estate must genuinely intend to sell — not simply end the tenancy and re-let. The 12-month re-let restriction applies from completion of the sale
- Ground 1A — notice period: 4 months' notice (from 1 May 2026). The notice can only be served after the tenancy has been in place for 12 months. For very recent tenancies, the executor may need to wait before serving notice
- Selling with tenant in situ: The estate can sell the property with the tenant remaining — the buyer takes over as landlord and the tenancy continues. Investor buyers typically pay a discount to vacant possession value (typically 10–25% depending on the tenancy terms and tenant behaviour)
Tax on rental income during estate administration
Rental income received by the estate during administration is taxable:
- Income tax: Rental income received by the estate from the date of death until the administration is completed is subject to income tax at the standard rates (20% basic rate) in the estate's hands. The personal allowance is not available to estates
- Beneficiary income: Once the estate is administered and the property is transferred to a beneficiary, rental income is taxable in the beneficiary's hands at their own marginal rate. If the beneficiary is a higher-rate taxpayer, Section 24 mortgage interest restrictions apply to them personally
- Estate tax return: The executor must file a Self Assessment tax return for the estate covering the administration period, reporting rental income and any other estate income
- Allowable deductions: The usual landlord expenses are deductible during the administration period: repairs, letting agent fees, insurance, and property-related expenses. Executors' professional fees related to managing the tenancy are also deductible
Capital gains tax on inherited rental property
CGT on inherited rental property is a major tax planning consideration:
- Uplift on death: The property is valued at its open market value on the date of death for both inheritance tax (IHT) and CGT purposes. This 'probate value' becomes the CGT base cost for the beneficiary or the estate on subsequent sale — so any gain that accrued during the deceased's ownership is wiped out
- CGT on sale by the estate: If the estate sells the property (rather than distributing it to a beneficiary first), any gain between probate value and the sale price is subject to CGT. The estate has a CGT annual exempt amount in the tax year of death and the two following tax years. After that, no annual exempt amount is available to the estate
- CGT rate on residential property: From 30 October 2024, the CGT rate on residential property sales is 18% (basic rate) and 24% (higher rate). The estate pays at the appropriate rate based on total estate income and gains
- Private residence relief: If the deceased lived in the property as their main home, the beneficiary who inherits and subsequently moves in can claim private residence relief (PRR) for the period they actually live there, but the period it was let does not attract PRR
- Where IHT is payable on the estate, the IHT paid on the property is not deductible from CGT — the two taxes run independently. However, the probate value used for IHT becomes the CGT base cost
Frequently asked questions
Can an executor evict a tenant during probate?+
Yes, but only using the lawful possession process. From 1 May 2026, Section 21 is abolished and the executor must use a Schedule 2 ground — most commonly Ground 1A (intent to sell with vacant possession) or Ground 1 (beneficiary intending to move in). A valid Notice to Seek Possession (Form 3) must be served with at least 4 months' notice, and a County Court possession order must be obtained. The executor cannot change the locks or exclude the tenant without a court order.
Does a tenancy end if the landlord dies?+
No. A residential tenancy does not end on the landlord's death — it passes to the estate and continues on the same terms. The executor or administrator takes on the landlord's obligations from the date of death, including 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 in base cost to the probate value on death. CGT is only payable when the property is subsequently sold or disposed of, calculated on the gain between the probate value and the sale price. The estate's annual CGT exempt amount is available in the tax year of death and the two following years.
Do I need to re-serve a Section 48 notice as executor?+
Yes. When the landlord changes (including by death), a new Section 48 notice (Housing Act 1988) must be served on the tenant providing an address in England or Wales where notices can be served on the new landlord (the estate c/o the executor). Until this is done, no rent is legally due from the tenant — it is suspended, not written off.