Quick answer
Yes, in most cases you can sell a house with a tenant still living in it. However, this depends on the tenancy type and existing agreements. Selling a tenanted property involves specific legal steps and notifying tenants, especially if it’s an assured shorthold tenancy. It’s important to seek professional conveyancing advice to understand your responsibilities and avoid delays.
On this page
- Understanding the Basics
- Different Types of Tenancies and Selling
- Selling With a Tenant: Your Legal Responsibilities
- Advantages and Challenges of Selling With a Tenant
- Vacant Possession vs. Selling Let With Tenants
- The Conveyancing Process for Tenanted Properties
- Special Considerations in England and Wales
- How we can help
Understanding the Basics
Many homeowners wonder, "Can I sell a house with a tenant still living in it?" The short answer is yes, but there are several important factors to consider under the laws of England and Wales.
When a property is rented out, the tenancy agreement grants the tenant certain rights which generally continue even if ownership changes. Whether you can sell easily depends on the tenancy type and the arrangements you have with your tenant.
Different Types of Tenancies and Selling
The most common tenancy in England and Wales is the Assured Shorthold Tenancy (AST). Under an AST:
- The tenant has the right to remain in the property until the fixed term ends or they are properly served notice.
- The new owner "steps into the shoes" of the landlord and must honour the existing tenancy agreement.
This means you can sell the property, but the sale will usually be subject to the tenant's existing tenancy. The buyer will take over as landlord.
For other tenancy types, such as excluded licences or rarer contractual tenancies, the rules may vary. It’s always prudent to check the specific tenancy agreement.
Selling With a Tenant: Your Legal Responsibilities
As a landlord selling an occupied property, you must ensure compliance with legal obligations, including:
- Providing the tenant with required notices if you intend to end the tenancy before sale (usually under Section 21 or Section 8, if appropriate).
- Supplying safety certificates and energy performance reports to prospective buyers and tenants.
- Informing tenants about the sale and arranging viewings at reasonable times, with proper notice.
Failure to follow proper procedures can lead to legal complications and potential delays.
Advantages and Challenges of Selling With a Tenant
Advantages
- Avoids leaving the property vacant, which may reduce security risks.
- Attracts buyer landlords who prefer investment properties with sitting tenants.
- Potential for a smoother sale if the tenant maintains the property well.
Challenges
- Potential difficulty arranging viewings and inspections.
- Possible restrictions if the tenant refuses to cooperate.
- Buyers may pay less for a property with a tenancy in place compared to vacant possession.
Vacant Possession vs. Selling Let With Tenants
Some sellers prefer to regain vacant possession before selling. This normally involves:
- Serving the appropriate notice to end the tenancy.
- Ensuring the tenant vacates before completion of the sale.
- Potentially facing delays if tenants contest the eviction or if there are possession proceedings.
Other sellers market the property as an investment with tenants in situ (“subject to tenancy”). This can be quicker but influences the type of buyer and price achievable.
The Conveyancing Process for Tenanted Properties
Selling a property with tenants increases the complexity of your conveyancing. Your solicitor or licensed conveyancer will:
- Request the tenancy agreement and all documentation associated with the tenancy.
- Provide prospects with details of the tenancy, safety certificates and gas/electric compliance.
- Explain to the buyer the tenant’s rights and the impact on the sale.
- Handle any notices or assignments related to the tenancy.
It’s advisable to choose a regulated conveyancer familiar with tenanted property sales to navigate these issues efficiently.
Special Considerations in England and Wales
Remember, these rules apply to England and Wales. Scotland and Northern Ireland have different tenancy laws and processes, which are beyond the scope of this guide.
In England and Wales, the Tenant Fees Act 2019 also limits fees landlords and agents can charge tenants, which can be relevant during the sale process.
How we can help
If you are considering selling a property with tenants or need help understanding the additional legal and practical steps involved, we can connect you with regulated conveyancers skilled in tenanted property sales. Get a fixed-fee, itemised quote and clear advice tailored to your circumstances. For more information, please get a quote from Affordable Conveyancing today.
Frequently asked questions
Do tenants have a right to stay after the property is sold?
Yes, in most cases the new owner takes over the tenancy and tenants have the right to stay until the tenancy ends or they are given proper notice.
Can I evict a tenant to sell the property?
You can only evict tenants by following the correct legal process, which usually involves serving notice and may require a court order.
Will selling with a tenant affect the sale price?
Properties sold with tenants in place may attract lower offers compared to vacant possession, as buyers consider the tenant’s rights and rental terms.
What documentation do buyers need about existing tenants?
Buyers should receive tenancy agreements, safety certificates, energy performance certificates, and details of any deposits held.
This guide is general information about the law in England and Wales as at the date shown above. It is not legal advice. Every property is different, so ask your conveyancer about your own situation. More in Conveyancing for buying a house.
