What is a Sitting Tenant’s Right in the UK?

The first thing to note is that this right doesn’t prevent you, as a landlord, from selling your property. In fact, there is very little a tenant can do to stop the selling process. Landlords still have every right to sell  their property at any time they wish, but the process may be made slightly trickier if a tenant exercises this right.

What does it mean?

A sitting tenant’s right means that a tenant reserves the right to continue living in a property even after a changed ownership. It is against the law for any current or future landlords to evict a tenant directly before or after the sale of a residence if they have an ongoing contract. You may also see this described as a ‘tenant in situ.’ 

Whilst the majority of new landlords can give the current tenant a section 21 notice, ensuring you vacate the property within 2 months, you may fall under an alternate category. If you entered into the tenancy agreement before 1989 you will be under the Rent Act of 1977, meaning you have the rights to remain in the property even after your original agreement or tenancy has expired.

How it impacts the selling process

As we mentioned before, there is very little, if anything at all, that a tenant can do to stop a landlord from selling their property. However, it is important to remember that a tenant can still hinder the process. If you are selling to another landlord, they may be reluctant to buy if the property already has a current occupant, especially if they plan to renovate. 

Many tenants may also be on rent control, meaning if they exercise their sitting tenants right the new landlord will struggle to charge them updated rent costs based on the current house market. 

If you are interested in selling to those who aren’t landlords, you may struggle even more. With house buyers often wanting to move into the property relatively quickly, it all depends on when the tenancy agreement ends.

How it impacts the tenant

If you are someone who is renting a property a landlord is selling and you have an ongoing contract, this makes you a sitting tenant. As an occupier, it’s important to do your research to know what exactly your rights are under the current government guidelines. 

It is common for rental properties to be sold to other landlords, if this occurs you will most likely have little to worry about. Again, eviction is still a possibility for the tenant, but the sitting tenants right ensures you are not kicked out immediately.

Are there any positives?

This right doesn’t mean that the experience for both seller and tenant will end in tears, there are some positives to the sitting tenants right. For example, some occupied properties are more desirable for other landlords, as they are guaranteed rent for at least the rest of the tenancy agreement.

For tenants, an alternate landlord may bring about positive changes for the property, such as renovation or better amenities. 

If you are a current landlord interested in selling your occupied property, contact us today for an evaluation.