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Sell the Underperformers
Properties with the lowest yields, the highest voids or the heaviest maintenance demands may be costing more than they return. Selling them can leave you with a smaller portfolio that is easier to manage.
Selling Part of Your Property Portfolio
You do not have to exit entirely. Portfolio Sales Consultancy helps landlords sell selected properties – perhaps those that are underperforming, difficult to manage or no longer worth your time – while you keep the ones that continue to work for you.
Request a Portfolio AppraisalWhy a Partial Sale Can Make Sense
Selling part of your portfolio – rather than all of it, or none of it – can be a sensible middle course. Higher mortgage costs, energy-efficiency requirements, the Renters' Rights Act 2025 (under which Section 21 "no-fault" evictions were abolished in England from 1 May 2026, with further measures being phased in during 2026 and 2027, according to local authority guidance) and the general administrative load of letting have led many landlords to review which properties they want to keep.
Not all properties in a portfolio perform equally. Some deliver steady yields with little management. Others take up a disproportionate amount of time, generate low or negative cash flow, need expensive ongoing maintenance, or carry tenancy problems that erode any profit. A partial sale lets you exit the properties that no longer suit you and concentrate on those that do.
Tax treatment depends on your circumstances. Speak to a qualified accountant before deciding how and when to sell.
Whatever your reason for considering a partial sale, PSC can talk through the properties you have in mind, introduce them to suitable investor buyers and support each sale through to completion.
Which Properties Should You Sell First?
There is no single right answer – it depends on your goals. These are some of the approaches landlords commonly consider.
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Sell the Problem Properties
Difficult tenancies, persistent arrears, disrepair or short leases can take up a great deal of time and money. Selling these first can let you concentrate on the rest. The price will reflect the issues the buyer takes on.
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Sell by Geography
If your portfolio spans several towns or cities, it may be easier to manage once concentrated in one area. Selling properties that are furthest from home or in less familiar locations can make good practical sense.
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Sell for Capital Release
If you need to raise capital – for retirement, reinvestment or family reasons – you may choose to sell the properties with the most equity, regardless of their yield.
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Sell Rather Than Fund Major Works
If a property needs significant improvement works – including any needed to meet energy-efficiency standards – you may prefer to sell rather than fund them. The price will reflect the work a buyer will need to do.
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Sell to Simplify
Sometimes the aim is not purely financial – it is to reduce the number of properties you are responsible for and free up your time. A partial sale of any size can help.
Tax Considerations for Partial Portfolio Sales
Capital Gains Tax (CGT) is usually a key consideration when selling investment property. The points below are general information only.
Current CGT Rates
For the 2026 to 2027 tax year, CGT is charged at 18% on gains within the basic-rate band and 24% on gains above it (GOV.UK, "Capital Gains Tax rates").
Annual Exempt Amount
Each individual has an annual exempt amount of £3,000 for 2026 to 2027 (GOV.UK). Tax treatment depends on your circumstances. Speak to a qualified accountant before deciding how and when to sell.
Allowable Costs
In general, a chargeable gain is worked out after deducting the acquisition cost and certain allowable costs of buying, improving and selling a property. Keeping accurate records of expenditure throughout your ownership helps your adviser establish your position.
Portfolios Held in a Limited Company
Portfolios held in a limited company can be sold either by selling the properties (an asset sale) or, in some cases, by selling the company's shares. The right route depends on your circumstances – your solicitor and accountant will advise. Any proposal involving the sale of company shares is checked by a solicitor before details are shared or promoted.
Tax and legal treatment depends on your circumstances. Speak to a qualified accountant or solicitor before acting. This page is general information, not tax advice.
Frequently Asked Questions
It depends on what you want to achieve. If you want to reduce your management workload, you might look first at the properties that take the most time or deliver the weakest returns. If you need to raise capital, you might look at those with the most equity. We can talk through the options with you, but the decision is yours – take advice from your accountant on the tax consequences.
It depends on how your borrowing is structured. If each property has its own buy-to-let mortgage, each loan is normally repaid from that property's sale proceeds. If you have a portfolio facility secured on several properties, selling one may need your lender's consent and may lead to a partial redemption or a change to the facility. Speak to your lender or a mortgage broker early so that there are no surprises.
Yes. There is no set minimum. Landlords may sell a single problem property, a few underperforming properties, or all the properties in one area of a larger portfolio. Each case is considered on its own merits.
Each sale may give rise to a Capital Gains Tax liability on the gain made since you acquired the property, after allowable costs. For 2026 to 2027, GOV.UK (“Capital Gains Tax rates”) gives rates of 18% on gains within the basic-rate band and 24% above it, and an annual exempt amount of £3,000. Tax and legal treatment depends on your circumstances. Speak to a qualified accountant or solicitor before acting.
Yes. Let properties can be included in a partial sale, and many investor buyers look for tenanted property. The tenancy continues with the new owner, and tenants must be told about their new landlord when the sale completes.
Considering Selling Part of Your Portfolio?
Request a portfolio appraisal and we will give you an indicative market view of the properties you are thinking of selling and talk through your options – a clear, realistic conversation with no pressure.
No obligation. Our terms, including how we are paid, are set out in writing before we act.