How Soon Can You Sell a House After Buying It?

There is no minimum period that you must wait before selling a house after buying it in the UK. Legally, as soon as you own the property (i.e. the purchase has completed and you are registered as the owner with HM Land Registry), most often it is up to you when you decide to sell your home. This could even be the very next day if you wanted to. 

Although it is worth bearing in mind that there may be some exceptions to this rule. For instance:

• Some leasehold properties do have clauses that restrict immediate resale – so always check your deeds and documentation.

• Certain mortgage lenders place restrictions on immediate resale (e.g. your mortgage terms may specify that you cannot remortgage or sell within a certain amount of months, without special permission).

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Why Would Someone Buy a House and Sell it Immediately?

People might buy a house and sell it straight after buying for many reasons, including: 

• Property ‘flipping’: This involves buying a property at a low price (for instance, buying a property auction), quickly making home improvements or fixing things that needed repairing, and selling for a profit.
• Market changes: Spotting a rise in local house prices or demand for the area and wanting to cash in quickly.
• Change in personal circumstances: A sudden job relocation, needing to sell property because of a divorce or separation, or to release equity due to financial difficulty.
• Buying mistake or regret: Realising after completion that the property, area or even neighbours are not what they’d originally hoped for.
• A chain break solution: Sometimes people buy a property to keep a chain moving and always intend to resell immediately. This allows buyers to proceed with purchasing a new property, even if their current property has not yet been sold.

Potential Pitfalls of Buying and Selling a House Straight Away

There are several downsides to buying a house and selling it straight away, including:

• Questions from buyer’s lender: If you’re selling very soon after buying, the buyer’s lender might question the reason for the quick resale (to guard against mortgage fraud).
• Questions from buyers: The data for when the house was last sold is readily available online, so buyers are likely to wonder why you are selling so soon. This can make the property harder to sell or push down the price.
• Market fluctuation: The market could move against you; property prices may fall before you manage to resell, meaning you could end up with a loss.
• Stamp Duty Land Tax (SDLT): You will have paid Stamp Duty on the purchase of your property, but you will not get this back (except in rare cases).
• Transaction costs: Along with Stamp Duty fees, there are likely to be estate agent fees, legal costs, survey fees and moving costs which you will not get back.
• Capital Gains Tax (CGT): If the property is not your main place of residence, you may have to pay Capital Gains Tax on any profit you made when you sell it. If you sell the house you purchased quickly, you could find that any profit is taxable because the property would not qualify for Private Residence Relief, which normally exempts gains made on your main home. 
• Mortgage lender limitations: Many lenders will not lend if a property has changed hands within six months, which limits the seller pool.

Is it Illegal to Sell a House Straight After Buying It?

No, legally there are no restrictions in the UK on buying a house and selling it straight away. This means that if you want to sell your home immediately after buying it, you are likely to have the right to do so.

However, our experts recommend checking your mortgage documentation if you intend on doing so, as some homeowners can be tied into contracts that can have restrictions and limit how quickly you put the property you have bought back on the market. See our guide to selling a house with a mortgage for more.

Can I Get a Mortgage for a Property I Intend to Sell Soon?

Many mainstream mortgage lenders will be cautious about lending on properties that the buyer intends to sell again in the short term. This is mainly due to quick resales raising concerns about mortgage fraud, or artificial price inflation.

Many mortgage lenders have policies in place which say that they will not offer a mortgage on a property that has been owned for less than six months. This is quite commonly known in the field as ‘the six month rule’. Anything under six months of ownership can make it difficult for you to get a mortgage for short-term ownership, but also for your future buyer when you come to resell.

How Long am I Liable After Selling a House?

Once you have sold your home, no matter how short of a time you officially owned it, you might assume your responsibilities end there. However, under UK law, you can still be held liable after the sale completes.

If the buyer later discovers issues with the property that you failed to disclose (e.g. not declaring the presence of Japanese knotweed), particularly if you purposefully provided incorrect information or concealed defects, they may have grounds to take legal action.

The Misrepresentation Act 1967 gives buyers up to six years from the date of the contract to bring a claim if they can prove that you misrepresented facts about the property. That is why it is crucial to answer pre-sale enquiries honestly and disclose any known problems, helping protect yourself from future disputes – whether you owned the property for a short time or not.

If you’re looking to sell your house fast, whether you’ve just bought or inherited it or you’ve lived there for many years, we can provide a cash offer on your property if you are not in a position to wait for a future house auction. Cash offers allow sellers a faster and simpler way to sell.

Get a free valuation on your home today to see if selling via auction is the right route for you, and if you accept the offer, we can set a completion date that suits your needs. Completion can then take place in as little as seven days.