You can sell a house with sitting tenants as it is or give notice and potentially refurbish the property before selling it on the open market.
Remember that your ‘sitting tenant’ has rights to quiet enjoyment of the property, and they might not be too happy to allow potential buyers to view your property. You can legally sell your house with sitting tenants; you can’t necessarily evict them just because you wish to sell.
Selling a house with sitting tenants might sound like a tricky task, but it’s more common than you think—and it can even work in your favour. Whether you’re downsizing your property portfolio or simply moving on from being a landlord, understanding the process is key to ensuring a smooth sale.
Here’s everything you need to know about selling with tenants in situ.
Table of Contents
What Is a Sitting Tenant?
A sitting tenant, also called a tenant in situ, is someone who continues living in a property while it’s being sold. Their tenancy agreement doesn’t end when ownership changes hands, meaning the new buyer inherits the tenant and becomes their landlord. While this arrangement can complicate the sale process, it’s often attractive to buy-to-let investors looking for immediate rental income.
How To Sell Your House With Sitting Tenants?
Selling a house with a tenant in situ is never easy, but we always help landlords sell their properties for cash.
The government’s landlord tax, Section 24, has resulted in many tired landlords exiting the residential market and investing in commercial properties. The media wrongly portrays landlords as greedy, rich, and taking advantage of tenants. The reality is that landlords are ordinary folk who have worked hard and saved up and invested in one or more additional properties as a pension pot.
You could be at the end of your mortgage fixed term or retiring, and now might be a great time to release equity tied into your rental portfolio.
Selling a house is one of the most stressful experiences in life. Throw in the uncertainty of non-committed buyers, dodgy estate agents, incompetent solicitors and tenants’ rights activists who think the world owes them. It can become extremely frustrating.
The good news is that we are on your side because we buy any house.
How much does a sitting tenant devalue a property?
A house with a sitting tenant has limited appeal because of the nature of protective tenancies and anti-landlord sentiments. Telegraph states that properties with sitting tenants can sell at a 60% discount in an auction. This is where we can help.
Selling a property with sitting tenants can be almost impossible if tenants are not on your side. Tenants are fully aware of their rights to a quiet enjoyment of their property. Selling a house with protected tenancy means that if a property has life or rent act tenancy, the valuation is determined by the age of the tenant and rent arrears.
Regulated tenancies is another name for protected tenancies. Created prior to January 1989, a regulated tenancy gives the tenants much more security than an AST. It is, in effect, a tenancy for life with a right of succession for a family member and fair, affordable, low rents.
There are also assured tenancies issued between 1989 and 1997 and aren’t ASTs. Tenants with regulated or assured tenancies have a right to permanently occupy the property even if it is sold.
If your property has a periodic tenancy, you must serve at least 2 months’ notice to your tenant, wait for them to give up possession and hope that they have not damaged your property, or it does not require substantial refurbishment once you receive keys.

What are problems when selling a house with sitting tenants?
One of the major problems of selling a tenanted occupied house is that it can be difficult for the buyer to get a mortgage. Banks or building societies do not lend against properties with regulated tenants in occupation. A few that may lend will want a much higher deposit and charge higher interest, thus putting off any potential buyers. Even if you find a buyer, they may not be able to get a mortgage.
If you are looking to sell a tenanted property, then Property Saviour can help you.
Steps to Sell a House with Sitting Tenants
- Decide Your Selling Strategy
You have three main options:
- Sell to another landlord: Market your property as an investment opportunity for buy-to-let buyers.
- Sell at auction: Auctions attract investors and offer quick sales but may fetch much lower prices.
- Sell on the open market: This is harder as most residential buyers prefer vacant properties.
- Inform Your Tenants
Legally, tenants must be notified of your intention to sell. Keep communication clear and respectful to avoid disputes. If viewings are required, provide at least 24 hours’ notice and agree on suitable times.
- Understand Tenants’ Rights
Sitting tenants have specific rights depending on their tenancy type:
- Assured Shorthold Tenancy (AST): The most common type, allowing landlords to issue Section 21 notices for eviction with two months’ notice.
- Regulated Tenancy: Rare but offers tenants indefinite rights to stay under the Rent Act 1977.
Ensure you comply with all legal obligations before proceeding.
- Offer Right of First Refusal
Consider offering tenants the chance to buy the property before listing it publicly. This can simplify the process and avoid complications.
- Transfer Deposits and Agreements
Once sold, the new landlord inherits all tenancy agreements and responsibilities, including deposit protection schemes. Ensure these are properly transferred during conveyancing.
Advantages of Selling with Sitting Tenants
Immediate rental income for buyers—no need to find new tenants.
Attracts experienced landlords or investors who understand tenancy agreements.
Maintains rental income for you until completion day.

Disadvantages of Selling with Sitting Tenants
- Reduced market value—properties with sitting tenants often sell for less.
- Limited buyer pool—most residential buyers prefer vacant properties.
- Potential tenant resistance—some may refuse viewings or make the process difficult.
Can You Sell a House with Sitting Tenants?
Yes, you can sell a house with sitting tenants, but it’s typically easier when selling to another landlord or investor who is happy to take on the existing tenancy agreement.
Can My Landlord Evict Me if He Wants to Sell?
If you’re on an AST, your landlord can issue a Section 21 notice giving two months’ notice to vacate. However, this depends on your agreement and whether Section 21 evictions remain legal under upcoming rental reforms.
Should I Buy a House with a Sitting Tenant?
Buying with sitting tenants offers instant rental income but comes with risks like reduced flexibility for renovations or evictions. It’s ideal for landlords seeking stable returns but less suited for buyers wanting vacant possession.
How Long Before a Tenant Becomes a Sitting Tenant?
The term “sitting tenant” typically refers to regulated tenancies agreed before January 1989 under the Rent Act 1977. These tenants have indefinite rights to remain in the property unless specific grounds for possession are proven.
How easy is it to sell a house with a tenant in it?
- A guaranteed sale with the certainty that will allow you to move with your plans
- Just one visit. Our instant decision to buy it. You only have to give your sitting tenant 24 hours’ notice.
- Completion in 28 days or a timeframe to suit you.
You can sell your house with sitting tenants the stress-free way! Request a call back today. We buy nationwide across England, Scotland & Wales.
Sell with certainty & speed

Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.

We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.

Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.