How Can Sitting Tenants Affect a House Sale?

If you’re a landlord considering selling a property with a tenant still occupying it, you’re not alone. Whether you want to release equity, reduce your portfolio, or exit the buy-to-let market entirely, it’s critical to understand how a sitting tenant may impact your home sale. 

While a tenanted property may appeal to the right buyer, it can also present challenges, ranging from legal obligations to decreased market value. In this guide, we’ll go over everything you need to know about selling a house with sitting tenants in 2025, including how to make the process as smooth as possible.

What is a sitting tenant?

A sitting tenant is someone who stays in a property with a valid tenancy agreement after the landlord decides to sell. This could be a tenant with a fixed-term Assured Shorthold Tenancy (AST) or, in some cases, a regulated tenancy dating back before 1989, which provides even greater tenant protections.

If you’re wondering how long before a tenant becomes a sitting tenant, the answer is, there is no timeframe. A tenant becomes a sitting tenant the moment a landlord decides to sell the property while the tenant is still legally living there under a valid tenancy agreement. As the property owner, you cannot remove them simply because you want to sell. Their rights are transferred to the new owner once the sale is completed.

Do sitting tenants reduce a property’s value?

Yes, in many cases, selling a property with a sitting tenant can lower its value.

Because the new buyer inherits the tenancy agreement, their flexibility is limited. If the buyer is a residential homeowner looking to live in the property, they may be turned off completely. Even landlords may expect a discount, especially if:

• The rent is below market rate
• The tenant has significant legal protections
• The property needs renovations that can’t happen until it’s vacant

Properties with sitting tenants usually sell for 20% to 40% less than comparable vacant homes. However, this varies depending on location, rent yield, tenant reliability, and property condition.

How do sitting tenants affect the sales process?

Selling with a sitting tenant necessitates a few extra steps and considerations. Here’s how it affects the process:

1. Fewer interested buyers

Buy-to-let investors are particularly interested in properties with existing tenants. While some may view an existing tenancy as advantageous, the average homeowner is unlikely to want the hassle of taking on someone else’s tenant.

2. Legal responsibilities transfer

The new owner becomes the landlord, which requires them to:

• Honour the terms of the existing tenancy agreement
• Secure the tenant’s deposit (if applicable)
• Comply with legal requirements like gas and electrical safety, EPCs, and Right to Rent checks

This increased responsibility may make the property less appealing to inexperienced buyers.

3. Viewings and access

To arrange viewings, you must provide at least 24 hours’ written notice, and the tenant reserves the right to refuse access. This can slow down the sale, especially if the tenant is uncooperative or uncomfortable with the process.

Can you sell a house with a sitting tenant?

Absolutely, and it occurs more frequently than you might think. Many landlords sell properties with tenants still in place, particularly if the tenant is dependable and the rent is consistent.

Sell House Fast specialises in buying properties with sitting tenants, including those with complicated tenancy agreements or regulated tenancies. Whether you want a quick sale or to avoid the hassle of evicting tenants, we have a simple, legally compliant process.

Your selling options

1. Sell to a buy-to-let investor

This is often the simplest option. A tenanted property may appeal to a professional landlord or property investor because it provides immediate rental income and eliminates the void period. You’ll want to provide clear tenancy details, including

• Rent payments and frequency
• Tenancy length
• Deposit protection (where applicable)
• Safety certificates

2. Wait for the tenant to vacate

If the highest possible price is your top priority, you may want to wait until the property is vacant. However, this can be time-consuming and unpredictable. You must follow proper legal procedures to terminate the tenancy, such as issuing a Section 21 notice, and provide adequate notice.

You also risk rent arrears, legal disputes, or the tenant refusing to leave, all of which can cause the sale to be delayed and cost you more money.

3. Negotiate with the tenant

In some cases, landlords provide an incentive for tenants to leave early, known as ‘cash for keys’. This informal agreement can work well if it is handled respectfully and legally. Any agreements should be confirmed in writing, and consulting a property solicitor is strongly advised.

4. Sell to a property buying company

If speed and certainty are important, selling directly to a professional cash house buyer is the best option. Sell House Fast buys tenanted homes in the UK with no legal fees, estate agent commissions, or delays. Whether the property has one or more tenants and whether they are on an AST or a protected tenancy, we can make a cash offer and close in as little as a few weeks.

Legal considerations when selling with a tenant

When selling a tenanted property, it’s important to consider several legal obligations:

• Provide the buyer with accurate tenancy details, including agreements and deposit schemes
• Ensure that the Energy Performance Certificate (EPC) is valid
• Make sure the gas and electrical safety certificates are up to date
• If you’re ending the tenancy, make sure the proper Section 21 or Section 8 notices are served
• Respect the tenant’s right to the quiet enjoyment of the property

Failing to meet legal requirements could result in delays, fines, or the inability to sell at all.

Selling a house with a sitting tenant presents some challenges, but it is far from impossible. With the right approach and buyer, you can ensure a smooth sale while respecting your tenant’s rights and protecting your financial interests.

Need to sell your tenanted property?

If you’re unsure about your next step or want to avoid costly delays, we can help. The Sell House Fast team has extensive experience of helping people like you with selling a tenanted property. We’ll work with you to find the quickest and most equitable solution for your needs.

Let us take the stress off your hands. Whether your tenants stay or leave, we will make you a free, no-obligation cash offer today.