Sitting tenants increasingly face eviction in ‘landlord exodus’

Thousands of sitting tenants are facing eviction due to struggling landlords selling their properties before the tenancy agreement ends, research reveals.

House Buyer Bureau says there has been a ‘landlord exodus’ in recent months across the country as landlords struggle to make a profit in the face of rising BTL mortgage rates.

Its analysis also reveals that buy-to-let mortgage arrears are escalating at a faster pace for landlords compared to homeowners, underlining how difficult life in the private rented sector (PRS) is becoming.

And that struggle is seeing growing numbers of landlords opting to offload their properties before the tenancy agreement has ended with the tenant in situ.

‘Landlords often get a lot of stick’

House Buyer Bureau’s managing director, Chris Hodgkinson, said: “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. Landlords – especially those who own just one or two properties – are facing mortgage cost increases that they simply cannot keep up with.”

He added: “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.”

12,518 properties are currently listed for sale

The research reveals that there are 12,518 properties are currently listed for sale that have sitting tenants.

Rented properties in the North West account for the largest share, with 20% (2,545) of these properties up for sale.

The South East follows closely, with 17% (2,188) of properties listed.

In other parts of the country, Yorkshire and Humber represent 13% of the total, and the East of England at 12%, and the East Midlands and West Midlands both at 11% each.

‘Effectively being sold as part of the house’

Mr Hodgkinson said: “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.”

He added: “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.”