Selling a house with sitting tenants in the UK

Published 28 April 2026 · Last reviewed: 1 June 2026 · the South Yorkshire Property Buyers team

What is a sitting tenant?

The term "sitting tenant" is used in two ways, and understanding the distinction matters.

In its original legal sense, a sitting tenant is someone with a regulated tenancy under the Rent Act 1977. These tenancies are rare today, they date from before the Housing Act 1988, but they carry very strong tenant rights, including the right to remain in the property at a controlled (often below-market) rent, and strong protections against eviction.

A property with a regulated sitting tenant is significantly more complex to sell and achieves a substantially lower price than a vacant property.

In its more common modern usage, "sitting tenant" simply means a tenant who is currently occupying the property when the landlord wants to sell. Most tenants in the UK today have assured shorthold tenancies (ASTs), which operate under different rules entirely. The rest of this guide focuses on AST tenants.

Can you sell with a tenant still in the property?

Yes. You can sell a tenanted property at any time. Your right to sell the property is not affected by the existence of a tenancy.

What you cannot do, without following the correct legal process, is sell the property with vacant possession if the tenant has a valid AST and has not given notice or agreed to leave.

You have two choices: sell with the tenant in place (the tenant continues their tenancy under the new owner), or obtain vacant possession before selling. Each has different implications for your buyer pool and the price you achieve.

Selling with the tenant in place

Selling a tenanted property to a buyer who accepts the tenant is called selling "with tenants in situ." The tenancy transfers to the new owner automatically on completion, the tenant does not need to sign a new agreement.

The advantages: you continue receiving rent during the sale process, you do not need to serve notice, and the tenant's daily life is not disrupted.

The disadvantages: your buyer pool is significantly narrower. Most residential buyers want to move into their new property. Most mortgage lenders will not lend on a property being purchased as a buy-to-let without specific buy-to-let mortgage products, which have different criteria. Your likely buyers are other landlords or property investors.

Selling with vacant possession (and what changed in 2026)

Vacant possession means the tenant has left before completion, and the new owner takes the property empty.

The Renters Rights Act 2025 changed this route significantly. Section 21 no-fault eviction was abolished in 2026, and existing ASTs converted into rolling assured periodic tenancies. To regain vacant possession you must now rely on a Section 8 ground — most relevantly the new Ground 1A, "landlord intends to sell." Ground 1A requires four months' notice, cannot be used in the first 12 months of the tenancy, and if the tenant does not leave you must apply to court for a possession order. Court timelines in 2026 typically add a further 4 to 9 months.

Selling with vacant possession still opens the property to the full buyer pool, including mortgage-backed residential buyers, and typically achieves a higher headline price than selling with tenants in situ.

However, in 2026 you must weigh that higher price against: four months' minimum notice, court risk and delay if the tenant does not leave, lost rental income during the void period, and the risk that the market moves against you while you wait. For many landlords, a landlord-to-landlord sale with tenants in situ now nets more after costs and time.

An NRLA quarterly landlord survey published in Q4 2025 reported that around 41 percent of small landlords were planning to sell at least one property within 12 months. That has thickened the investor buyer pool for tenanted stock and made the in-situ route faster than it was a year ago.

Impact on sale price

A tenanted property typically achieves a lower sale price than an equivalent vacant property. The discount varies.

With a cooperative AST tenant and full market rent, the discount may be small, some investor buyers are happy to acquire a property with an established tenant paying market rent.

With a below-market rent, a difficult tenant relationship, or a property where the investor would need to carry out significant work, the discount can be significant.

With a regulated (Rent Act 1977) sitting tenant, prices can be 30 to 50 percent below vacant market value.

Who buys tenanted properties?

The main buyers for a tenanted property are:

• Buy-to-let investors
• Property companies and portfolio buyers
• Cash buyers (who can buy regardless of tenancy status)

Most of these buyers are not using high-street estate agents. They operate directly, through specialist property investors' networks, or through cash buying services.

South Yorkshire Property Buyers buys tenanted properties with sitting tenants in place. We cover properties across Sheffield, Rotherham, Doncaster, Barnsley and the surrounding area, and we can complete on a sale without requiring the tenant to leave first. For full detail on the process, see our service page: Sell house with tenants in situ.

Landlord-to-landlord conveyancing: what's different

A tenanted sale is a slightly different conveyancing transaction to a vacant residential sale. Your solicitor will need to package up extra documents the buyer's solicitor will ask for from day one: the current tenancy agreement (and any addenda), proof of the deposit being protected in an approved scheme with the prescribed information served, gas safety certificate, EICR (electrical), EPC, How to Rent guide service confirmation, and a rent schedule with payment history. Where the landlord operates through a limited company, the buyer will also want the SPV's basic details for AML.

On completion the tenancy transfers automatically, the deposit must be transferred to the new landlord's scheme within 30 days and re-served with updated prescribed information, and the tenant must be notified in writing under Section 3 of the Landlord and Tenant Act 1985. Rent apportionment is dealt with on the completion statement. Getting the paperwork ready up front is the single biggest factor that shortens a tenanted sale.

Capital Gains Tax on the sale

A rented property is not your main residence, so it does not qualify for Private Residence Relief on the period it was let. From April 2024 the CGT annual exempt amount was cut to GBP 3,000, and residential CGT is charged at 18 percent (basic rate) or 24 percent (higher rate) on the gain after costs and allowances. You must report and pay residential CGT to HMRC within 60 days of completion using the online UK Property Disposal service. Selling at a slightly lower in-situ price can sometimes net more after CGT, costs and void months — speak to an accountant before you commit to a route.

Common questions

Can I sell my house with a tenant still living in it?

Yes. You can sell a property at any time regardless of whether it is tenanted. The tenant's right is to remain under their tenancy, not to prevent a sale. You can sell either with the tenant in place or (after following the correct notice procedure) with vacant possession.

Does my tenant have to know about the sale?

There is no legal requirement to notify the tenant at the point you decide to sell. However, once viewings are planned, you must give the tenant 24 hours' notice before accessing the property, and the access must be at a reasonable time. It is generally better practice to inform the tenant early, as it maintains a cooperative relationship.

What is the difference between a sitting tenant and an assured shorthold tenant?

A sitting tenant in the strict legal sense has a regulated tenancy under the Rent Act 1977, with very strong rights including indefinite occupancy. An assured shorthold tenant (AST), the most common type today, has a tenancy that can be ended by the landlord following the correct notice procedure. The protections are significantly different.

Can a cash buyer buy a property with a sitting tenant?

Yes. A cash buyer does not need vacant possession. South Yorkshire Property Buyers buys tenanted properties with tenants in situ as a routine matter. The sale can complete without the tenant needing to leave.

How long does it take to sell a tenanted property?

Selling to a specialist investor cash buyer can complete in 7 to 28 days because the tenancy simply transfers on completion and no possession is needed. Selling on the open market to a buy-to-let investor typically takes 8 to 14 weeks. Since the Renters Rights Act 2025 abolished Section 21 in 2026, recovering vacant possession now requires a Section 8 ground and a court order, which can take 4 to 9 months.

How has the Renters Rights Act 2025 affected selling tenanted property in 2026?

The Renters Rights Act 2025 abolished Section 21 no-fault evictions in 2026 and converted ASTs into rolling assured periodic tenancies. Landlords can no longer regain vacant possession through a no-fault route. To recover possession in order to sell, you must rely on a Section 8 ground (such as the new Ground 1A "landlord intends to sell") and obtain a court order. This has shifted many landlords toward selling with tenants in situ to a buy-to-let investor or specialist cash buyer.

Will I owe Capital Gains Tax when I sell a tenanted property?

Most likely yes. A rented property is not your main residence, so it does not qualify for Private Residence Relief on the period it was let. From April 2024 the CGT annual exempt amount fell to GBP 3,000 and higher-rate residential CGT is 24 percent. You must report and pay residential CGT within 60 days of completion via HMRC's online service. Speak to an accountant for figures specific to your purchase price, improvements and ownership structure.

Why are so many small landlords selling in 2026?

An NRLA quarterly landlord survey published in Q4 2025 reported that around 41 percent of small landlords were planning to sell at least one property within 12 months, citing the Renters Rights Act, mortgage costs after the higher base rate cycle, and tighter EPC and licensing regimes. This has increased supply of tenanted properties for investor cash buyers and made landlord-to-landlord sales the dominant route in 2026.