If you’re currently renting a property and your landlord is considering selling, you may have the opportunity to buy the home you’re already living in. This is known as buying as a sitting tenant, and it’s something our mortgage advisors often help with.

Whether you’re a first time buyer in Birmingham or someone looking to take that next step, buying your rental property can be a straightforward route onto the property ladder.

Why do landlords sell to tenants?

There are several reasons a landlord might prefer to sell directly to a tenant rather than listing the property on the open market.

From the landlord’s perspective, it can be quicker and more cost-effective. It avoids estate agent fees, reduces the risk of an empty property, and removes the need for costly refurbishments ahead of marketing the home.

In recent years, many landlords have faced changes to tax relief rules, which have increased their costs and affected profits.

Some have decided to leave the market altogether, while others are reducing the size of their portfolios. If your landlord is looking to sell, they may be open to discussing a direct sale with you as the sitting tenant.

What are the benefits for you as a tenant?

Buying the property you already live in has several advantages:

  • You know the home inside out — there are no surprises when it comes to condition, layout or location.
  • The purchase process can move faster – as there’s no need for the seller to wait for you to vacate.
  • In some cases, landlords may offer a lower price, especially if the home isn’t being listed publicly.

If the agreed price is below the current market value, some mortgage lenders may use that equity as part of your deposit. This means you could need a smaller deposit or possibly none at all, depending on your circumstances.

Our mortgage advisors in Birmingham can explain how much deposit you’re likely to need and talk you through whether the lender would accept equity in place of a cash deposit.

Can I approach my landlord about buying?

If your landlord hasn’t offered to sell the property, but you’re interested in buying it, there’s no harm in starting the conversation. Keep it informal to begin with, let them know you’re settled and would be open to buying if they were considering a sale in future.

Some landlords may not have thought about selling until the option is raised. Others might already be planning to leave the market and will welcome the idea of a hassle-free sale. If they’re interested, the next step would usually involve getting a property valuation to help set a price.

Our mortgage advisors in Birmingham can support you through this process, including what to ask and how to check if the agreed price reflects the current market.

Can you use a gifted deposit when buying from a landlord?

If you’re receiving a gifted deposit, for example, from a parent or close family member, it can usually be used even when buying as a sitting tenant. The same rules around evidence and affordability will apply.

We’ll guide you through what documents are required, how the funds should be transferred, and what lenders expect to see.

In some cases, your landlord may even offer a discount on the price as a form of gifted equity, which some lenders will treat in a similar way to a deposit.

Speak With a Mortgage Advisor in Birmingham

If you’re a sitting tenant and thinking about buying your rental property, speaking with a mortgage advisor in Birmingham can help you understand what’s possible.

Every situation is different, and the right approach will depend on your personal circumstances, deposit options, and the agreement you’ve reached with your landlord.

Our team has helped many tenants secure a mortgage on the home they’re already living in. We’ll explain everything clearly, help you prepare for your application, and explore the best lender options available to you.

We’re available seven days a week to support you from your first enquiry through to completion. If you’re ready to get started, you can book a free mortgage appointment online at a time that works for you.

Date Last Edited: June 17, 2025