If you plan to sell a tenanted property, especially one under a regulated one, understanding the nuances of tenant rights and property valuation is essential. At The Property Buyers, we specialise in helping landlords navigate the complexities of selling properties with tenants in place—including those with long-standing protected or regulated tenancies.
What Is a Regulated Tenancy?
Regulated tenancies typically apply to rental agreements that began before 15 January 1989, governed by the Rent Act 1977. These agreements, whether the property is furnished or unfurnished, grant tenants extensive legal protections. Post-1989, tenancies fall under either Assured Tenancies or Assured Shorthold Tenancies (ASTs). Regulated tenancies today only arise in rare, specific circumstances.
It’s also important to note that regulated tenants differ from sitting tenants, although both types may affect a property’s value and saleability. Read more about sitting tenants here.
Key Rights of Regulated Tenants
Selling a property with a regulated tenant requires understanding their legal rights, which include:
- Protection from eviction – A landlord can only evict a regulated tenant by obtaining a possession order from the court, and only in specific cases.
- Tenancy succession—If the tenant passes away, a spouse or family member living in the property may inherit the tenancy.
- Fair rent regulation – Both tenant and landlord can request a fair rent assessment via the Valuation Office or local council. Once registered, rent cannot exceed this capped amount and is reviewed periodically.
- Housing benefits – Tenants may qualify for housing assistance through the local authority.
- Repair obligations – Landlords are typically responsible for structural repairs. Grants may be available through local councils to assist with these costs.
- Eco-efficiency support – Eco insulation and heating improvements grants may be accessible, mainly if the tenant receives benefits.
Due to the long-term security for tenants and regulated rent caps, these properties often trade at around 50% of open market value—which is why they attract investor interest, particularly where rental yields align with low capital requirements.
Selling a Property with Regulated Tenants: What to Watch Out For
Many investors and even landlords fail to recognise the implications of a regulated or protected tenancy. Here are key signs and considerations:
- Below-market property pricing – If a property is listed significantly under market value, this may indicate the presence of a regulated tenancy or another restriction.
- Fair Rent Register—Use the Fair Rent Register (available since 2003) to check whether a tenancy has been registered. It’s not exhaustive, but it’s a good starting point.
- Solicitor insight – During the conveyancing process, a solicitor will often uncover issues with tenancy types, including regulated agreements, early in the transaction.
Visit our guide to selling with tenants for more tips.
The Property Buyers: We Purchase Regulated Tenancy Properties
We are a specialist property-buying company with over 16 years of experience acquiring tenanted and regulated properties. Acting on behalf of two significant pension funds, we make the sales process fast, secure, and transparent.
Here’s how we work:
- Desktop Valuation – We provide a fast, no-obligation valuation based on your property details.
- Firm Offer – You’ll receive a formal offer, and we will proceed to exchange it with non-refundable funds.
- Completion of Your Terms – We complete the sale within a timeframe that works for you.
Whether you’re selling due to inheritance, landlord fatigue, or portfolio restructuring, we ensure a hassle-free sale process.
Ready to Sell Your Regulated Tenancy Property?
If you’re ready to take the next step, simply complete this online form. Our team will contact you to guide you through the process from start to finish.