Landlord Selling House? Tenants’ Rights UK

Finding a rental property that suits your needs as tenant and budget is no easy task.

Once you’ve settled into your home, the last thing you want to hear is that your landlord decides he wants to sell the property. It can be a worrisome situation, but rest assured that as a tenant, you have rights that protect you during this process.

In this article, home sales specialists with 20+ years of experience Property Solvers explain how to navigate through this complex situation.

New Owner Intentions With Your Rented Property

When a landlord wants to sell a tenanted property, the new owner typically intends to continue renting it out. This is good news for you because it means that your tenancy can continue without any major disruptions. The new owner is often an individual looking to become a landlord or an existing landlord expanding their portfolio.

They see the value in an already occupied property with immediate rental income, saving them the hassle of marketing and finding new tenants. In such cases, you can breathe easy knowing that your tenancy will likely remain intact.

Many landlords own five or more rental properties, so the chances of the prospective buyer being another landlord showing interest in an already-tenanted investment property are relatively high.

Rental Property Eviction: When New Landlords Flip the Script

However, it’s important to acknowledge that the new owner may have different plans for the property, which could involve an eviction process.

While this can be stressful, it’s crucial to remain calm and composed. Remember, your tenant rights are still in place and protected by the law.  The landlord cannot simply sell the house in a couple of weeks, for example.

Tenant Rights During a Property Sale

Your rental agreement is a legal interest in the property, and a change in ownership does not nullify that interest. Your tenancy agreements and rights, as outlined by the law, remain unchanged, unaffected by the transfer of ownership. Here are some of the key rights you retain:

Right to Remain

You have the right to stay in the property for the entire fixed term period. The new landlord is obligated to accept you as a tenant until the fixed-term agreement expires.

They can initiate eviction procedures, but they must adhere to the established rules to avoid unlawful eviction.

Right to Peaceful Enjoyment

You have the right to enjoy your rented property in peace. The new landlord cannot show prospective property buyers around the property without your permission, and neither can estate agents.

They must send you a written notice at least 24 hours in advance, and the viewings have to be at a reasonable time. You are not obliged to let them in, especially if your landlord hasn’t given estate agents or you a heads up beforehand.

Right to a Safe Environment: Holding Landlords Accountable

Your right to a safe and habitable living environment is fundamental to being a UK tenant. It’s the responsibility of both your current landlord and new landlord to ensure that your rental property remains a well-maintained, safe and protected environment, regardless of whether it is being sold or not.

Landlords are legally obligated to address any repair issues promptly. They must also maintain a hazard-free environment for their tenants, regardless of any other circumstances at play.

Landlords are not obligated by law to install security systems or cameras in rental properties, but many are willing, with fisheye surveillance cameras growing in popularity due to the vast capture-range. Just remember that landlords must comply with privacy laws and obtain proper consent from you before installing.

The law recognizes that UK landlords have a duty of care towards their tenants, and that they must take all reasonable steps to prevent hazards and maintain the property in a safe condition. This includes addressing structural issues, electrical or plumbing problems, pest infestations, or any other potential risks that may compromise the safety or well-being of their tenants.

In the case of a property sale, it is crucial to emphasise that the new landlord inherits these responsibilities. They cannot neglect their duty to provide a safe living environment simply because the property has changed ownership. The law remains clear: landlords must ensure that the property remains safe and habitable at all times.

Retaliatory Evictions

Unfortunately, there are instances where rogue landlords deliberately create difficult living conditions to force unwanted tenants out. This unethical practice, known as ‘retaliatory eviction,’ is not only morally reprehensible but also illegal.

Retaliatory eviction occurs when a landlord purposely allows the property to deteriorate or refuses to make necessary repairs as a means to pressure tenants to leave. Such behaviour is a direct violation of tenants’ rights and is subject to legal consequences.

If you find yourself in a situation where your old or new landlord fails to address repair issues or deliberately makes living conditions difficult, it is crucial to assert your rights. Document all instances of communication with your landlord, including repair requests and their responses. Take photographs or videos of any hazards or unsafe conditions present in the property. This evidence can be invaluable should you need to seek legal recourse to enforce your right to a safe living environment.

Remember, the law is on your side. Landlords who neglect their responsibilities can be held accountable before the courts. If your landlord allows the property to become unsafe or hazardous, they can face legal repercussions, including fines and potential termination of their ownership rights.

Seek guidance from local tenant advocacy organisations, legal aid clinics or housing authorities to understand your options and take appropriate action to protect your rights.

Eviction Procedures: Know Your Rights

The process of eviction does not change due to a property sale. Both the previous and new landlords must follow the established eviction procedures dictated by the law. These procedures provide landlords with a legal path to regain possession of the property. They also give tenants an opportunity to find alternative accommodation.

Understanding Fixed-Term Assured Shorthold Tenancy Agreement

If you have a fixed-term assured shorthold tenancy, you have the right to remain in the property until the fixed term ends, even during the sale of the property. To terminate a fixed term tenancy, landlords must follow these Uk Landlord and Tenant Act (1985) guidelines:

Section 21 Eviction Notice: Landlords can serve a section 21 eviction notice, which takes effect on the last day of the fixed term. They must provide a minimum of two months’ proper notice between the date of service and the effective date, and they do not have to provide a reason.

Section 8 Eviction Notice: Landlords can serve a section 8 eviction notice if there has been a breach of the tenancy agreement, such as rent arrears, or unacceptable renter behaviour. This requires the landlord to provide evidence of the breach.

Possession Order: Landlords can obtain a possession order from the court and enforce it through county bailiffs to evict tenants.

Break Clause: Landlords may have included a special ‘break clause’ in the legal document of the tenancy agreement that allows them to end the contract early, and they can exercise this clause if it exists.

Tenant Agreement or Surrender: Landlords can end the tenancy with the agreement of the tenant or the surrender of the rented property.

Transitioning to Periodic Tenancies

When the fixed term expires, the tenancy automatically transitions into a periodic tenancy unless otherwise agreed. Periodic tenancies offer more flexibility for both landlords and tenants. If you have a periodic assured shorthold tenancy, landlords can use the standard eviction procedures. 

Protection Against Illegal Eviction

It’s important to note that you cannot be evicted simply because the property is being sold. Such a reason does not justify eviction or an accelerated eviction process. Landlords must act within the boundaries of the law; engaging in any attempts at illegal eviction is a criminal offence that is typically harshly punished by the courts; it’s simply not tolerated.

New Landlord’s Responsibilities

The landlord does not gain any additional rights that the previous landlord did not possess. They are subject to the same regulations and obligations as any other landlord. However, they do have additional responsibilities, including toward you, their new tenant, during the transfer period:

Transfer of Deposit

Your landlord must ensure that the tenancy deposit originally provided to your old landlord is transferred and protected in a government-approved tenancy deposit scheme within 30 days of receiving it. They should also inform you of the scheme used.

Safety Checks

Your landlord must also verify that all safety inspections, such as the gas safety check and electrical safety check, are up to date. They must rectify any deficiencies and ensure compliance with the relevant regulations.

Notification of Ownership Change

Within two months of the sale completion, your new landlord must inform you of the change in the property’s ownership name. They must provide their name, address, and contact details.

The Bottom Line on Landlord Selling House – Tenants’ Rights UK

Ultimately, as a tenant, your rights are protected during a property sale. Your tenancy remains valid, and you cannot be evicted simply because the landlord wishes to sell their tenanted property.

The new landlord must fulfil their obligations as described in the new tenancy agreemen.  These include conducting safety checks, transferring the deposit, and notifying you of the ownership change.

It’s important to note that this article serves only as a guide, and for legal advice. We always recommend consulting a professional. Stay informed, assert your rights, and seek a peaceful resolution to any issues that may arise during the property sale process.