What is a sitting tenant?
- A sitting tenant is a tenant who occupies a property under a legally protected tenancy when the property is sold or transferred. The tenant retains their legal right to remain despite the change of ownership
- Under English law, a sale does not end a tenancy: the incoming owner takes the property subject to the existing tenancy and all its terms. The new landlord steps into the shoes of the previous landlord
- Post-RRA 2025 (from 1 May 2026): all assured tenancies are Periodic Assured Tenancy Agreements. Section 21 'no-fault' notices are abolished. A sitting tenant under a Periodic Assured Tenancy has stronger security of tenure than under the previous fixed-term regime
- Historical regulated tenancies: some very long-term tenancies (pre-Housing Act 1988) may be regulated tenancies under the Rent Act 1977. Regulated tenants have statutory security of tenure and rent controlled by the Valuation Office, these are rare but exist. Obtain specialist legal advice before purchasing any property with a pre-1989 tenancy
- Licensees: occupiers under a licence agreement are not sitting tenants in the legal sense and have weaker security of tenure. Confirm the legal nature of the existing occupation before purchasing
Security of tenure for sitting tenants (post-RRA 2025)
- Section 21 abolished: since 1 May 2026, landlords cannot serve a Section 21 no-fault notice. A sitting tenant cannot be evicted simply because the new owner wants vacant possession
- Possession requires grounds: the new landlord must rely on one of the Section 8 grounds in Schedule 2 of the Housing Act 1988. The most commonly used for owner occupation is Ground 1 (owner-occupation) or Ground 1A (sale with vacant possession)
- Ground 1A (sale): requires 4 months' notice and the court must be satisfied the landlord genuinely intends to sell with vacant possession. A new owner cannot immediately use Ground 1A, the tenancy must have started more than 12 months ago
- Minimum notice periods (post-RRA): most Section 8 grounds require 2 months' notice. Ground 1 and Ground 1A require 4 months. Ground 8 (rent arrears of 3+ months) requires 4 weeks
- Discretionary grounds: most grounds are discretionary, even where a ground is proved, the court may refuse possession if it would not be reasonable. Only Grounds 7A, 8, and 8A are mandatory
Buying a property with a sitting tenant
- Valuation discount: properties sold with sitting tenants are typically discounted against vacant possession value, commonly 10�30% depending on the tenancy type, rent level, and likelihood of recovering possession within a reasonable period
- Investment strategy: buying with a sitting tenant can be an attractive buy-to-let investment if the rent is at or near market rate, you acquire an existing income stream without a void period
- Below market rent: if the sitting tenant is paying below market rate, factor the yield into your return calculations. Increasing rent is governed by the Section 13 procedure (once per 12 months, 2 months' notice), you cannot immediately increase rent to market rate on purchase
- Due diligence: obtain the existing tenancy agreement; evidence of deposit protection; gas safety, EICR, and EPC certificates; a history of any arrears or disputes; and the landlord's Information Sheet if already served
- Finance: some lenders are cautious about mortgaging properties with sitting tenants, check your lender's requirements before purchase, as some require vacant possession as a condition of the mortgage offer
Ending a sitting tenancy lawfully
- Mutual surrender: the cleanest route. Agree a surrender date with the tenant and confirm in writing. A financial incentive (cash for keys) is often appropriate where the tenant is unlikely to leave voluntarily, this avoids lengthy court proceedings
- Section 8 possession: serve a Section 8 notice specifying the ground(s). If the tenant does not vacate, issue a claim at the county court. Mandatory ground claims (e.g. Ground 8 for substantial arrears) proceed to a possession order; discretionary grounds are more uncertain
- Ground 1 (owner-occupation): you require the property as your principal home. Give 4 months' notice (post-RRA). A prior notice at tenancy commencement is required, if not served originally, this ground may not be available
- Time to possession: if the tenant contests the claim, county court timescales in 2026 are typically 6�18 months from claim to possession order. Factor this into any purchase where vacant possession is required within a specific timeframe
- Unlawful eviction: attempting to force a sitting tenant out by cutting off utilities, removing fixtures, entering without notice, or making threats is an offence under the Protection from Eviction Act 1977. Penalties include an unlimited fine and imprisonment