How do you sell a property with a sitting tenant?
A sitting tenant is a tenant who stays in the property when it is sold. The term is most often used for Rent Act 1977 regulated tenants, whose tenancies began before 15 January 1989. They pay a registered fair rent, have strong security and succession rights, and properties let to them sell at a significant discount to vacant value.
Read more in our guide: Selling a portfolio with tenants
Regulated tenancies at a glance
| Point | Position |
|---|---|
| Created | Before 15 January 1989 |
| Rent | Fair rent registered by the rent officer, reviewable every 2 years |
| Rent cap | Increases limited by the Maximum Fair Rent formula |
| Security | Possession only on Rent Act grounds, usually with a court order |
| Succession | Spouse or partner keeps a regulated tenancy; other family may get an assured tenancy |
| Value | Often well below vacant possession value |
Two meanings
Any tenant who stays put through a sale is a sitting tenant in everyday speech, and since the Renters' Rights Act 2025 almost every tenant has an assured periodic tenancy. In the trade, though, sitting tenant usually means a regulated tenant under the Rent Act 1977. The Renters' Rights Act did not convert these tenancies, so the old rules still apply to them.
Fair rents
The rent officer at the Valuation Office Agency registers a fair rent, which ignores scarcity and is usually well below market rent. Either side can apply for a new registration every two years, and increases are capped by a formula linked to inflation. The rent cannot be raised using Section 13.
How they are valued
Value depends on the tenant's age, the rent, the condition of the property and the chance of succession. Buyers of regulated property, who are often specialist investors, price in the low income and the eventual vacant possession. Discounts to vacant possession value are commonly large, and an expert valuation is essential.
Options for the owner
- Sell to a specialist investor with the tenant in place.
- Offer the property to the tenant or their family, who may be keen to buy at a fair price.
- Agree a surrender with a payment or alternative accommodation, with the tenant taking independent advice.
- Include it in a wider portfolio sale, where the buyer looks at the whole income.
Repairs remain the landlord's duty, and long-standing regulated tenants are often elderly, so handle any approach with care and respect.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A sitting tenant is a tenant who stays in the property when it is sold. The term is most often used for Rent Act 1977 regulated tenants, whose tenancies began before 15 January 1989. They pay a registered fair rent, have strong security and succession rights, and properties let to them sell at a significant discount to vacant value.
No. Wanting to sell is not a ground for possession under the Rent Act.
Not a legal right, but many owners offer them the chance, and it can be a good outcome for both sides.
Almost never. Since 15 January 1989 new lettings have been assured, with very limited exceptions.
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