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Buying a property you are currently renting could mean no bidding war, a simpler move and even the chance to buy below market value. Here’s how to approach your landlord, agree a fair price and find the right mortgage.
As a tenant, you may be interested in buying a property you are currently renting. This can certainly be simpler than buying on the open market – but is only possible if your landlord is willing to part with the property. Here we take a look at how to persuade your landlord to sell, how to negotiate a price, the buying process and your mortgage options.
KEY INFORMATION
Yes. Provided your landlord is willing to sell, there is nothing to stop you purchasing your rental property. The key is starting the conversation – and being prepared to negotiate.
It’s a common misconception that landlords are required to give their tenant ‘first refusal.’ In fact, as a private tenant, there is no automatic ‘right’ to buy the property before it’s offered to someone else.
Landlords are also not obliged to consider an offer from you more favourably than from another buyer.
That said, some may be open to selling directly to an existing tenant, and this type of sale can offer potential benefits to both sides.
When considering whether to approach your landlord about buying the property, it is helpful to understand why a direct sale may appeal to them.
Rising costs, tighter regulation and ongoing maintenance expenses mean lots of landlords are looking to exit the market.
According to Government figures, 31% of private landlords in 2024, planned to reduce the size of their portfolio over the next two years, including 16% saying they were planning to sell all their rental properties.
And some may be more open to selling directly to an existing tenant, as opposed to going through the process of finding a buyer on the open market. That’s largely because under the Renters’ Rights Act 2025, a landlord who stops renting their property and takes it back in order to sell it will generally not be allowed to re-let it for 12 months.
This means that if a landlord gets a tenant to leave because they want to sell, but then the sale falls through, they risk ending up with an empty property and lost income.
Selling directly to the sitting tenant may therefore offer the landlord a simpler and less risky route, which is one reason it may be worth asking whether they would consider it.
In fact, if you rent a leasehold flat, you may find your landlord is especially willing to start a conversation at the moment, as this market remains challenging.
Some leasehold properties are taking longer to sell because of higher service charges, concerns over building safety – and more cautious buyers. For these landlords, selling to an existing tenant could offer a quicker, more straightforward route to a sale. If you’re buying a leasehold do take the time with your conveyancer to understand the terms of your lease and what’s involved.
With many property transactions taking several months to complete, you could point out that, as a committed tenant who already knows the house or flat – and who has demonstrated you can afford the monthly payments – you could be a very attractive buyer.
A direct sale can also provide greater certainty. Rather than marketing the property and hoping to find a buyer, your landlord already has an interested purchaser who knows the property and has lived there.
When discussing a possible sale with your landlord, it may help to explain why selling directly to you could be a straightforward and attractive option:
As a tenant, there are plenty of upsides to getting your landlord to agree to sell to you:
Potentially, yes. Buying directly from your landlord will avoid moving costs and, if you’re buying as a sitting tenant, you may benefit from a simpler, more straightforward purchase.
But don’t assume it will be cheaper. You’ll still need to budget for costs such as a the mortgage and mortgage fees, conveyancing fees, survey costs and, where applicable, Stamp Duty. It’s also important to make sure you’re paying a fair market price by researching comparable sold properties and negotiating if necessary.
If your landlord is prepared to sell at a discount, you may also be eligible for a concessionary purchase mortgage with some lenders, which could reduce the deposit you need. Read on for more on how these work.
Yes, always. Even if you’re buying the home you already rent you should still negotiate the purchase price in the same way you would if you were buying on the open market.
As a tenant, it will likely be down to your landlord to decide how they want to value the property.
They may ask a handful of local estate agents to provide their valuations, or they may instruct an independent chartered surveyor to carry out a formal valuation survey.
Whatever you do, don’t feel you have to accept the first price you’re given. The key is to do your own research by looking at comparable sold prices in the local area. This guide on How to tell if a house is over priced explains how to research local house prices.
This will give you a better idea of what your rental property is worth – and help you decide whether the asking price is reasonable. If you feel your landlord has over-valued the property, don’t be afraid to negotiate.
For tips on negotiating see our guide on How to make an offer on a house & negotiate effectively
Yes. In most cases, when looking at buying a property you’re currently renting, you will apply for a standard residential mortgage in just the same way as you would if you were buying any other house or flat.
A lender will assess your income, outgoings, credit history – and the property’s value – to decide how much they’re willing to lend. You’ll usually need a house deposit, though the amount required will depend on the lender and mortgage you choose.
If you’re a first time buyer, mortgage calculators are a good place to start to see how much you can afford to borrow. The following affordability calculator shows you instantly how much you may be able to borrow and afford based on your income. While the following mortgage cost calculator will also give you an idea of what your monthly mortgage costs are likely to be.
Before making an offer, it’s worth getting a ‘mortgage in principle,’ as this gives an indication of how much you could borrow; it also shows your landlord that you’re a serious buyer.
Bear in mind that buying directly from your landlord can be slightly different from a standard purchase, and particularly if you’re negotiating a discounted sale.
Speaking to a mortgage broker can help you understand your options, and help find a lender that’s right for your circumstances. Mortgage Advice Bureau search over 100 mortgages so you don’t have to. Speak to a broker and get a Mortgage in Principle today
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
While you can get a standard residential mortgage for your purchase, there are also specialist products to consider.
If your landlord agrees to sell the property to you, the tenant, for less than its market value, you may be able to take advantage of a ‘concessionary purchase mortgage.’
With some lenders, tenants may be offered a ‘discount’ which can count towards part or all of the deposit, meaning you need to stump up less cash upfront.
Just note that eligibility and criteria vary, and that only a host of lenders offer this type of mortgage.
While it may be possible to find concessionary deals where you don’t need to put down any of your own cash as a deposit, it may make more sense to put in some of your own money to boost the deposit – and bring down the LTV – hopefully giving you access to better mortgage rates.
For example, TSB offers a ‘5&5 concessionary mortgage’ which allows a landlord to offer tenant buyers a 5% discount on the purchase price, with the buyer contributing their own deposit on top – a minimum of 5%. TSB also offers a ‘10% concessionary purchase option’ where landlords sell their property to a tenant with a discount of 10% or more on its market value.
Given that ‘concessionary purchase mortgages’ are a specialist area, it’s important to take independent mortgage advice before deciding whether this option is right for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Our Mortgage Expert Sarah Tucker, helps bring the TSB’s 5&5 concessionary mortgage to life:
“The TSB 5&5 concessionary mortgage presents a good opportunity for renters and landlords.
Let’s say you agree with your landlord to buy the home you rent for £300,000. Under TSB’s 5&5 concessionary mortgage, you provide a 5% deposit (£15,000). Your landlord agrees to sell the property at a 5% discount (£15,000).
That means you effectively have a 10% contribution (£30,000) towards the purchase, leaving you to borrow £270,000 (at 90% loan-to-value) – subject to affordability and TSB’s lending criteria.“
Once you’ve got your mortgage, you should also look to factor in the up-front costs of purchasing the home you already rent, including conveyancing fees, survey costs, and most significantly, stamp duty. You can get your own personalised cost of moving with our cost of moving calculator
Equally, once you become the homeowner, be aware you’ll also take on costs that were previously your landlord’s responsibility. This could include things such as maintenance and repairs, buildings insurance, and, if you’re buying a leasehold property, it could include service charges and ground rent.
Before committing, make sure you understand the full cost of buying – and owning a home.
No. The process will be broadly the same as any other property purchase. You’ll still need a conveyancer or solicitor to carry out searches, review the contract, check the property’s legal title and make sure everything is in order before you exchange contracts.
It’s important not to cut corners on any of the usual checks. Even if you think you know your home inside out, your solicitor should still investigate matters such as boundaries, planning permissions, and any restrictions affecting the property.
| Pros | Cons |
| No bidding wars or gazumping | Landlord may decide not to sell |
| You already know the property | You may be emotionally attached to the property and less objective |
| Potentially quicker, simpler purchase | You could overpay if you don’t properly research the value |
| Save on moving costs and hassle | You still need surveys, searches and legal checks, especially if leasehold |
| Direct negotiation with landlord and potential discount | Problems you have accepted as a tenant could be expensive to fix as an owner |
| Possible concessionary mortgage options |
While purchasing your existing rental property might sound attractive, there are scenarios where you might need to think twice. Think carefully before going ahead if:
Yes. Your landlord is under no obligation to sell you the property you’re living in as a tenant unless you have a ‘right’ under a scheme such as ‘Right to Buy.’
Yes. Some social housing tenants may be able to purchase their home through schemes such as ‘Right to Buy.’ But this will depend on their circumstances and eligibility. Criteria includes having had a ‘public sector landlord’ (such as a council or housing association) for three years; you must also have no legal issues with debt or any outstanding possession orders. To get a better idea about whether you qualify, check out the government’s eligibility quiz.
Following a government review, the maximum Right to Buy discount was reduced to £16,000 – £38,000, depending on where you live, or 70% of the property’s value, whichever is lower. Read more in our guide to The Right to Buy.
Yes. Buying directly from your landlord means you can negotiate the price and terms without an estate agent party. But try not to let your familiarity with the property cloud your judgement. Be rigorous about researching the property’s true value before agreeing a price.
Yes. This is known as a ‘concessionary purchase,’ and some lenders may allow the discount to count towards your deposit.
This is the arrangement used when a landlord sells a property to a tenant at below its market value. The discount may count towards the buyer’s deposit, reducing the amount of cash needed upfront
If your lender values the property below the price you’d agreed with your landlord, they may reduce the amount they’re willing to lend. If this happens, you may need to renegotiate the price, amass a larger deposit, or reconsider the purchase. Read our guide on Down Valuations for advice.
Yes. If your landlord agrees to sell to you directly, you can usually go ahead without an estate agent. This can save the landlord agent fees and marketing costs. But as a buyer, remember you’ll still need legal advice and the usual buying checks.
If your mortgage application is turned down, you may not be able to go ahead with the purchase unless you can find another lender. Getting a ‘mortgage in principle’ first can help show you’re a serious buyer.
Yes. You’ll still need a solicitor or conveyancer to handle the legal process, including searches, checking the contract and transferring ownership. The process is broadly the same as buying any other property. See our guide to conveyancing fees for a rough idea of how much this costs and compare instant quotes from conveyancing firms today.
Yes. Even if you know the house or flat well, a survey can help identify hidden problems such as structural issues, roof defects or damp, helping you avoid unexpected repair costs. You can get quotes from local qualified surveyors and compare today so you’re ready to instruct when the time comes. The buyer arranges the house survey.
If this happens, you cannot go ahead with the purchase unless they agree to sell. Until contracts are exchanged, either party can usually withdraw, meaning there is no guarantee the purchase will complete.
If the purchase falls through, there’s a risk your relationship with your landlord could become strained. Take steps to keep lines of communication open. Also remember you still have rights as a tenant.
Yes. In England, landlords who use the new selling ground to regain possession of a property cannot normally re-let or market it for rent for 12 months afterwards. This means that if the planned sale falls through, they may be left without rental income and unable to simply find a new tenant.
Selling directly to the existing tenant can reduce that risk. The tenant can remain in the property and continue paying rent while the purchase progresses, subject to the agreement between both parties. The landlord may also avoid estate agent fees, marketing costs, viewings and the uncertainty of finding another buyer. However, the landlord is under no obligation to sell to their tenant.
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