Over 25% of UK Landlord Property Sales Include Sitting Tenants, Survey Finds

Summary: Recent research reveals that more than one in four UK landlords sold properties with tenants still residing in them over the past year. This trend highlights the ongoing transfer of rental stock within the private rented sector (PRS), even as the overall sector faces contraction due to sales to owner-occupiers.

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SEO Meta Title: Landlord Property Sales with Tenants in Place in the UK

SEO Meta Description: Over 25% of landlord property sales in the UK include tenants in place, showing ongoing rental stock transfers within the private rented sector.

Significant Share of Landlord Sales Involve Tenants Remaining in Situ

Data from the latest Pegasus Insight Landlord Trends survey reveals that more than a quarter of landlords who sold a property in the past year did so with tenants still occupying the premises. On average, landlords sold approximately 1.8 properties with sitting tenants, indicating that tenant occupancy often continues despite changes in ownership.

This finding challenges the assumption that landlord sales necessarily remove properties from the rental market. Instead, it shows a meaningful minority of sales involve properties being transferred directly between landlords, sometimes with tenants already in place.

Private Rented Sector Stock Transfers and Shrinking Market

Mark Long, founder and director of Pegasus Insight, emphasises that landlord sales do not automatically mean rental properties disappear from the PRS. He explains, “In a meaningful minority of cases the property is simply being transferred from one landlord to another and sometimes sold with tenants already in place.”

However, Long also points out that the overall trend is towards a shrinking private rented sector. This is driven by a substantial proportion of landlord sales being made to first-time buyers or other owner-occupiers, which reduces the pool of homes available for rent.

According to the survey, around 30% of homes sold by landlords were acquired by other landlords, indicating ongoing stock transfer within the sector. Meanwhile, first-time buyers accounted for 34% of purchases, and other residential buyers made up 29%, both groups moving properties out of the lettings market.

Implications for Landlords and Policy Considerations

The research highlights the importance of recognising how regulatory and fiscal pressures influence landlord behaviour. Mark Long warns, “Policymakers must recognise the cumulative impact of ever tighter regulation and rising taxation on landlords, particularly smaller operators. Many are deciding that the pressures and uncertainty are no longer worth it.”

This trend is significant because the PRS provides homes for around 20% of UK households. Therefore, policy decisions affecting landlords have direct consequences for tenants and the availability of rental properties.

For landlords, understanding that a notable portion of sales include sitting tenants may influence decisions on whether to sell with tenants in place or vacant possession. Selling with tenants can offer continuity of rental income and appeal to investor buyers, but also requires consideration of tenancy agreements and tenant rights.

What It Means for UK Landlords

Landlords should be aware that the market increasingly involves sales where tenants remain in situ, reflecting a dynamic rental sector where properties often remain as investment assets. However, the pressure from regulatory changes and taxation is contributing to a reduction in rental stock as more properties transfer to owner-occupiers.

Those considering selling should weigh the benefits and challenges of selling with tenants in place, while also monitoring how policy changes might impact the viability of remaining in the PRS.

Suggested internal link anchors

• private rented sector
• landlord property sales
• selling with tenants in place
• tenant occupancy
• regulation and taxation impact
• first-time buyers
• rental property market trends
• landlord sales to owner-occupiers
• rental stock transfer
• PRS housing availability

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/