A growing number of buy-to-let landlords in the UK are choosing to sell their investment properties while tenants are still living in them, due to an increasing number of property investors leaving the market. According to recent data, there are currently 12,518 properties listed for sale with tenants in-situ.
Of these properties, 20% (2,545) are located in the North West, with 17% (2,188) listed in the South East. Other regions include Yorkshire & Humber (13%), East of England (12%), East Midlands (11%), and West Midlands (11%).
Chris Hodgkinson, the managing director of House Buyer Bureau, which conducted the research, stated that landlords often face criticism from tenants who see rent prices rising and assume it is due to landlord greed. However, he explained that landlords, particularly those who own only one or two properties, are struggling with increasing mortgage costs that they cannot afford. Instead of passing the cost onto tenants, some landlords are choosing to sell their properties and exit the market.
Hodgkinson added that many landlords are not waiting for their existing tenants’ rental agreements to end but are selling the properties with the tenants still in place – “As our research shows, thousands aren’t even waiting until their existing tenants come to the end of their agreement. And while these tenants are legally entitled to stay put until the end of their tenancy agreement, they are effectively being sold as part of the house and their mid-long-term fate is to be decided by whosoever buys the property.”
Summary
- How many properties are affected? Right now, 12,518 properties being sold have tenants in them. Here’s a regional breakdown:
- North West: 2,545 properties (20%)
- South East: 2,188 properties (17%)
- Yorkshire & Humber: 13%
- East of England: 12%
- East Midlands and West Midlands: 11% each
- Why is this happening? Chris Hodgkinson, explained a few things:
- Not about Greed: Some people might think landlords are raising rent prices out of greed. But that’s not the main story now.
- Mortgage Cost Issues: Many landlords, especially those with just one or two properties, are struggling. Their mortgage costs are going up, and they can’t keep pace.
- Two Choices for Landlords: Some landlords are trying to balance these costs by increasing the rent. But others? They’re deciding to sell their properties and exit the rental business. It’s becoming that tough for them.
- What does this mean for tenants? If a landlord sells a house with a tenant inside:
- Legal Rights: By law, tenants can live in the property until their lease ends. But their long-term situation becomes uncertain.
- Possible Outcomes: The new owner might want to live in the house, meaning the tenant might have to leave. Or the new owner could increase the rent. This uncertainty is causing a lot of worry for tenants, especially in already stressful times.
- What’s the future outlook? Given the shaky economic situation, we might see even more landlords wanting to sell their properties. This could mean fewer rental choices for tenants.
In a Nutshell: Landlords are facing rising costs and challenges. As a result, more are choosing to sell their properties, even if tenants are still living inside. This trend is causing a lot of worry for these tenants about their future living situations.