You've moved out, or you're about to, and the same question keeps you up at night: sell the house, or keep it and let it? Since the Renters' Rights Act, the answer has changed for a lot of people. There are really three options, not two, and each one suits a different owner.
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Key takeaways
- You have three options: sell, let to a tenant, or short-let.
- The Renters' Rights Act has made tenancies harder to end, and many landlords plan to sell.
- Selling costs around 2% to 3% of the sale price.
- Short lets keep you in control of your dates, but take more work.
- Compare what's left after every cost, and take tax advice before you decide.
Contents
What are your three options?
- Sell: take the money now, and walk away.
- Let to a tenant: a steady monthly rent, under the new tenancy rules.
- Short-let: let the home to guests by the night, keeping control of your dates.
Why are so many landlords selling?
The Renters' Rights Act has changed the deal for landlords. Section 21 has gone, tenancies roll on with no end date, and the government's guide says a landlord who takes the home back to sell or move in will not be able to market or re-let their property for 12 months. A Deposit Protection Service survey, reported by Property Reporter, found 56% planned to sell some or all of their portfolio.
When does selling make sense?
- You need the money for your next home.
- You don't want the responsibility of a let property.
- The home needs work you can't or won't fund.
- Your mortgage or lease doesn't allow letting.
Budget for the costs. Springbok Properties suggests budgeting 2% to 3% of your sale price. Read How much does it cost to sell a house?
When does letting to a tenant make sense?
A tenancy gives a steady monthly income, with the tenant paying the bills. In Brighton and Hove, the ONS puts the average private rent at £1,816 a month. The trade-off is control: tenancies now roll on with no fixed end, and getting the home back needs a legal ground and months of notice.
When does short-letting make sense?
Short lets can earn more than a tenancy in busy areas, and guests have a home elsewhere, so a genuine short let is usually treated as a licence rather than a tenancy. You keep control of your dates and can use the home yourself or sell it later without serving notice on anyone. The trade-offs are more work, higher running costs, and income that changes through the year. Homes we manage in Brighton and Hove were booked on 66.8% of nights in 2025.
What about tax if you keep the house?
If you sell your main home, there's usually no Capital Gains Tax. If you keep it and sell later, once it's no longer your main home, you may pay Capital Gains Tax on part of the gain. Domovita summarises the rates on additional property as 18% / 24%, with an annual allowance and a deadline to report. Speak to an accountant before you decide.
How do you compare the three honestly?
- Sell: the sale price, minus selling costs and any mortgage to repay.
- Let: a year's rent, minus agent fees, repairs, insurance and mortgage costs.
- Short-let: a year's bookings, minus management, cleaning, bills, council tax, insurance and mortgage costs.
Our short-let vs long-let calculator compares the two letting options month by month.
Frequently asked questions
Is it better to sell or rent my house in 2026?
It depends on whether you need the money now, how much control you want, and the numbers after costs for your home.
Why are landlords selling up?
Mainly the Renters' Rights Act. A DPS survey found 56% planned to sell some or all of their portfolio.
Can I short-let instead of selling?
Often, yes, if your mortgage, lease and insurance allow it, and the letting ban doesn't apply.
Will I pay Capital Gains Tax if I rent my house out?
Possibly, when you sell later, on part of the gain. Speak to an accountant.
Can I sell later if I short-let now?
Yes. There's no tenant to serve notice on, so the home can go on the market when you're ready.
Related guides
Sources
This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.