Selling a house with sitting tenants in the UK

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

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

For AST tenants, you can serve a Section 21 notice giving the tenant at least two months' notice to vacate (subject to the specific dates of the tenancy and the correct procedural requirements). If the tenant does not leave voluntarily after the notice expires, you would need to apply to court for a possession order.

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

However, the time required to regain possession, the uncertainty of whether the tenant will leave without a court process, and the loss of rental income during the void period are all factors to weigh against the higher potential price.

Note: at the time of writing, the Renters Rights Bill is progressing through Parliament. This bill proposes significant changes to possession rights for landlords, including the abolition of Section 21 no-fault evictions. If you are planning a sale that relies on obtaining possession, get specific legal advice on the current law at the time you are acting.

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.

Please note: taxes including Capital Gains Tax remain the seller's responsibility. We recommend seeking independent tax advice if applicable.

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 cash buyer can complete in as little as 7 to 28 days. Selling on the open market to an investor typically takes longer, as the pool of buyers is smaller. Selling after serving Section 21 notice requires at least two months for the notice period, plus any additional time for the tenant to vacate.