For landlords looking to streamline their portfolio or exit the rental market altogether, selling a property at auction can be a fast, secure, and financially rewarding route. In today’s challenging rental landscape, more landlords across the UK are turning to property auctions as a way to sell quickly, avoid delays, and reach motivated buyers.

In this guide, we break down everything landlords need to know about selling by auction, including how it works, the pros and cons of selling with tenants in situ, and what to expect during the process.

Why Are Landlords Choosing to Sell at Property Auctions?

The UK rental market has changed significantly in recent years. Tighter regulations, rising mortgage rates, and increased maintenance costs have led many landlords to reconsider the long-term profitability of holding rental properties. In this climate, property auctions have emerged as an increasingly popular alternative to selling through traditional estate agents.

Here’s why:

1. Speed and Certainty

One of the biggest advantages of property auctions is the speed of the sale. Once the hammer falls, the sale is legally binding, and completion usually takes place within 28 days. This is a major draw for landlords who want to avoid the uncertainty of private treaty sales, where buyers can pull out at the last minute or drag the process on for months.

2. Immediate Exposure to Cash Buyers and Investors

Auction rooms (both physical and online) are filled with serious buyers, many of whom are cash-rich investors. This means your property is far more likely to sell quickly, even if it needs refurbishment or comes with tenants. These buyers often value the rental potential or development opportunity more than the property's current condition.

3. Transparent Selling Process

With a reserve price in place (the minimum you’re willing to accept), you remain in control. The competitive nature of auctions can also help drive up the final sale price, especially if there is strong interest from multiple bidders.

Selling with Tenants in Situ: What You Need to Know

One of the most common questions from landlords is: “Can I sell a tenanted property at auction?” The answer is yes — and in many cases, it’s an advantage.

Selling a rental property with tenants in situ means the buyer will inherit an income-generating asset from day one. This can be especially appealing to investors, as they won’t need to find new tenants or wait for rent payments to begin.

However, there are a few things to keep in mind:

• Legal Pack Requirements: The auction legal pack should include the tenancy agreement, rent payment history, and any deposit protection documentation. This provides full transparency for buyers.
• Tenant Communication: While tenants don’t need to vacate the property before the sale, it’s good practice to keep them informed. Viewings and marketing photos should be handled respectfully and in line with the tenancy agreement.
• Rental Income Until Completion: As the landlord, you’ll continue receiving rent until the sale is completed — a helpful bonus if the process takes several weeks.

Selling a Vacant Property

Alternatively, you may choose to sell your property vacant. This opens up the buyer pool to include not only investors but also owner-occupiers and first-time buyers.

A vacant property:

• Allows for easier access during viewings.
• May attract buyers who want to renovate or move in immediately.
• Removes any complications with tenant notices or ongoing rental contracts.

However, vacant properties come with their own costs — including council tax, insurance, and potential security concerns. If your property has been empty for some time, selling it quickly at auction can help reduce ongoing losses.

Should I Sell with or Without Tenants?

There’s no one-size-fits-all answer. Your decision will depend on several factors, including:

• The demand in your local market (is it driven by investors or homeowners?)
• Your financial priorities (do you need ongoing rental income or a quick exit?)
• The condition of your tenancy (are tenants reliable and long-term, or causing issues?)

If your property is located in a high-rental-demand area and your tenants are paying rent on time, selling with tenants in situ could increase the sale price. On the other hand, if you’re targeting a broader buyer base, or your tenancy is due to end soon, selling the property vacant may make more sense.

How the Property Auction Process Works for Landlords

1. Choose the Right Auction House
   Not all auction houses are the same. Some specialise in investment properties or have a larger buyer network in certain regions. Look for one that understands landlord needs and offers marketing support.
2. Agree the Reserve Price
   You and the auctioneer will set a minimum sale price. This gives you peace of mind that your property won’t be sold for less than you’re willing to accept.
3. Prepare the Legal Pack
   Your solicitor will compile the documents needed for the sale, including the title deeds, tenancy agreements (if applicable), searches, and any other relevant information.
4. Market the Property
   Your property will be listed in the auction catalogue and promoted to thousands of potential buyers. This often includes listings on Rightmove, Zoopla, and the auction house’s own platform.
5. Auction Day (or Online Sale)
   Once bidding ends and the hammer falls, the sale is legally binding. The buyer pays a deposit immediately and is required to complete the purchase within a set timeframe (typically 28 days).
6. Completion
   On completion day, you receive the remaining balance and transfer ownership — just like with any other property sale.

Final Thoughts

Whether you're looking to offload a single rental or liquidate your entire portfolio, selling via property auctions offers speed, certainty, and access to motivated buyers. With demand from investors still strong, especially in key rental areas, landlords can take advantage of competitive bidding and fast completions — all while staying in control of the process.

Before diving in, make sure you partner with a trusted auction house, weigh up the pros and cons of selling with tenants, and get professional legal advice to ensure everything runs smoothly.