More than one in four landlord sales have tenants in place

More than a quarter of landlords who sold a property over the past year did so with tenants still in place, research reveals.

According to data tracking how homes move through the private rented sector, landlords typically sold an average of 1.8 properties with sitting tenants.

The latest Pegasus Insight Landlord Trends survey shows that a tenant’s occupancy often continued despite a change in ownership.

Also, around 30% of homes sold by landlords were acquired by another landlord.

PRS is shrinking

The firm’s founder and director, Mark Long, said: “Landlord sales do not automatically mean a rental property disappears from the sector.

“In a meaningful minority of cases the property is simply being transferred from one landlord to another and sometimes sold with tenants already in place.”

He added: “However, the overall direction of travel still points to a shrinking PRS.

“When a substantial proportion of landlord sales are going to first-time buyers or other owner occupiers, it inevitably reduces the pool of homes available for rent.”

Policies must help landlords

The research highlights that the 30% of homes being sold to other landlords points to stock being transferred within the sector rather than leaving it entirely.

However, a larger share of sales involved buyers intending to live in the property.

First-time buyers made up 34% of purchases, while a further 29% went to other residential buyers.

Those transactions move homes away from the lettings market and reduce the number of properties available for rent.

Mr Long said: “Policymakers must recognise the cumulative impact of ever tighter regulation and rising taxation on landlords, particularly smaller operators.

“Many are deciding that the pressures and uncertainty are no longer worth it.”

He adds: “This is significant because the PRS provides homes for around 20% of the UK’s households, so policy decisions affecting landlords ultimately have consequences for tenants too.”

If you would like to discuss quickly selling your rental property with experts, contact Landlord Sales Agency: