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How a Sitting Tenant Affects Property Value

The type of tenancy matters most.

How a Sitting Tenant Affects Property Value Property Investment & Wealth Building

Updated October 2026 · Fraser Bond

Investing · Tenanted sales

Sitting tenants and value

Regulatedbig discount
Periodicsmaller
Investorbuyers
Yieldbased
In short: Selling with a tenant in place usually means selling to an investor, who values the property on its yield and the tenancy's security. Homes with older regulated (Rent Act 1977) tenancies, which give lifetime security and fair rents, can sell at large discounts to vacant value. Modern periodic tenancies under the Renters' Rights Act sell at smaller discounts, especially if rents are at market level and the tenant is reliable.

Frequently asked questions

How big is the discount?

It varies widely with the tenancy type.

Can I sell to the tenant?

Yes, often a good option.

Selling a tenanted property?

Talk to our team or get a free valuation.

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