Not every property you view will be empty and ready to move into, however that doesn’t mean it’s off the table. Some homes come with tenants already living there, known as tenant in situ properties.
London, in particular, has a high volume of properties that move between owners while still let out and they can present a smart opportunity for the right buyer. With the right information and timing, buying a home with a tenant in place can be a straightforward and well-managed route to homeownership.
What does ‘tenant in situ’ mean?
When a property is listed with a tenant in situ, it means the home is being sold while someone is still renting it, and that tenancy continues after the sale. As the buyer, you become the tenant’s new landlord and take over the agreement as it stands. In many cases, this is part of a standard rental arrangement. For those looking to live in the property, it raises different considerations from a typical purchase.
Who typically buys these properties?
Properties with tenants in situ are commonly marketed to buy-to-let investors. With a renter already in place, the incoming owner begins collecting rent immediately, saving time and letting fees.
However, tenant-in-situ properties aren’t restricted to investors. Residential buyers can also purchase them, though the process involves additional steps and a longer timeline before the property becomes available to live in.
Related: House hunting tips for first time buyers
Can you move into the property?
Not right away. The key detail is that the tenant’s agreement stays in place after the sale. You cannot simply ask them to leave or move in without notice. The length of time before you can take occupancy depends on:
- The type of tenancy
- Whether it has a fixed end date
- Whether the tenant intends to leave voluntarily
- The correct notice periods under current housing law
Tenants with Assured Shorthold Tenancies (ASTs) may be on rolling contracts, which renew month to month. Others might have fixed-term agreements with several months still to run.
Legal responsibilities during the tenancy
If you become the new owner while a tenancy is ongoing, you’re legally responsible for managing it correctly. This includes:
- Honouring the agreement: You cannot change the terms unless both parties agree.
- Protecting the deposit: The tenant’s deposit must remain in a government-approved protection scheme.
- Meeting safety standards: Gas safety, electrical checks, and EPC documentation must all be valid and in place.
- Managing repairs and issues: As landlord, you’re responsible for urgent and structural maintenance during the tenancy.
Failure to meet these obligations can result in penalties, regardless of whether the previous landlord was compliant.
Related: Five dos and don’ts for first time buyers
What happens at the end of the tenancy?
Once the tenancy ends, either by mutual agreement or through the tenant giving notice, you can proceed with your plans to occupy the property. If notice needs to be served, it must be done according to current legal guidelines.
Section 21 notices (commonly used to regain possession) remain in use, though changes to legislation may impact how they function. In some cases, the process to regain possession can take a few months. All steps must comply with the latest housing laws.
What are the risks?
Buying a property with a tenant in situ isn’t risky by default, but it does carry certain limitations:
- You can’t choose when you move in: You’ll need to wait until the tenancy ends.
- You take on landlord duties: Even for a short period, you’re legally responsible for the tenant.
- Limited control over the tenancy: The existing agreement remains in place until it expires.
These are not negative outcomes, but they do require clear understanding and good legal support during the buying process.
Are these properties cheaper?
According to recent data from Zoopla and Rightmove, properties sold with a sitting tenant are often priced below equivalent vacant homes. The reduced price reflects the limited number of buyers who can proceed with delayed possession.
In some cases, these homes have been well cared for and have stable tenancy histories. That can be reassuring, especially in city locations where tenant turnover is low and property standards are closely monitored.
What to check before committing
Before offering on a tenant-in-situ property, ask the estate agent or solicitor for the following:
- Tenancy agreement: Confirm the terms and end date.
- Deposit protection: Request the scheme details and confirmation of compliance.
- Safety certificates: Check for a valid Gas Safety Certificate, EICR (Electrical Installation Condition Report), and EPC.
- Rent history: Look for consistency in payments and note any arrears.
- Service and maintenance records: Review how the property has been managed during the tenancy.
These documents provide transparency and help you understand what your responsibilities will be.
Does this suit all residential buyers?
Not always. If you need to move quickly, maybe for work, school admissions or to keep a chain on track, you might prefer a property that’s already vacant.
But if you’re more flexible with your move-in date or currently renting, the timeline may not be a dealbreaker. Sometimes the tenancy is already nearing its end, meaning the property could be available soon after completion.
Tenant-in-situ homes are a well-established part of the housing market. The key is knowing how the process works and being ready to take on short-term landlord responsibilities if needed.
Related: Understanding closing costs: What buyers need to know
Things to keep in mind
A property sold with a tenant in situ comes with a few extra layers of responsibility, but it’s a normal and well-regulated part of the housing market. For buyers with flexible move-in dates, it can offer good value and a realistic way into ownership, particularly in competitive locations.
Contact your local Parkers branch for tailored advice today.
