Thousands of landlords across Britain are selling their properties before tenancy agreements have concluded, causing uncertainty and potential eviction for tenants who remain in situ, a new study has suggested.
House Buyer Bureau’s findings revealed that there are currently 12,518 properties listed for sale while still having tenants in situ.
20% (2,545) of these properties are for sale in the North West, while 17% (2,188) are listed in the South East.
Yorkshire & Humber accounts for 13%, followed by the East of England (12%), East Midlands (11%), and West Midlands (11%).
Recent months have seen landlords aplenty leave Britain’s buy-to-let market due to rising mortgage rates making it more difficult than ever to earn a profit from rental income.
Indeed, according to Savills, 25,000 homes in the UK were sold between April and May compared with 22,000 between February and March. What’s more, one in seven properties sold in 2023 was previously classified as buy-to-let.
Recent research has also shown that buy-to-let mortgage arrears are worsening at a faster rate than they are for homeowners.
“Landlords often get a lot of stick. Tenants see the price of rent going up and often assume it’s the result of landlord greed, but this simply isn’t the case. Certainly not anymore,” said Managing Director of House Buyer Bureau, Chris Hodgkinson, continuing:
“Landlords – especially those who own just one or two properties – are facing mortgage cost increases that they simply cannot keep up with. And while some are trying to combat this by passing the cost onto their tenants, others are simply selling-up and getting out of the game. That’s how bad it’s become.
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.
This could mean that an eviction is on the horizon to make way for the new owner-occupier. It could mean that higher rent will be demanded. Whatever the outcome, it’s causing unsustainable levels of stress and concern for renters at a time where stress and concern are already at a high.
With the current economic picture remaining uncertain at best, there’s a high chance that more buy-to-let properties will be up for sale, resulting in even less opportunities for tenants.”
