More landlords are choosing to sell rental properties with tenants still in place as rising costs, regulatory change and planned reforms continue to drive restructuring across the private rented sector.
Property solutions company Bettermove has launched a dedicated tenanted-property sales service, citing a significant increase in enquiries from landlords seeking alternatives to vacant possession sales.
The move comes amid growing evidence that landlords are increasingly exiting the sector or reviewing their portfolios following the introduction of the Renters’ Rights Act and the prospect of tougher energy efficiency requirements.
Industry figures suggest the trend is already gathering pace.
LANDLORD EXODUS
Research published earlier this year found that one in four landlord-owned properties sold during the past 12 months changed hands with sitting tenants rather than being marketed as vacant properties.
At the same time, estimates discussed in the House of Lords have suggested that more than 100,000 landlords in England could leave the market this year.
The growing popularity of tenant-in-situ sales reflects a desire among some landlords to avoid disrupting tenants while maintaining rental income until completion.
It can also provide access to a wider pool of investor buyers seeking immediate rental income from established tenancies.
Bettermove says it has seen increasing demand from landlords looking to sell individual properties, multiple units and larger portfolios without requiring tenants to move out before a transaction completes.
INCREASING DEMAND
Elliott Rostron (main picture, inset), Senior Account Manager at Bettermove, said: “Although we’ve supported with tenanted disposals for many years, evolving legislation has prompted more landlords to review their portfolios and reconsider their long-term plans.
“Many are now seeking a more discreet route to sale, particularly where tenants remain in occupation.”
Rostron said the approach can benefit both landlords and tenants by providing greater certainty and reducing disruption.
He adds: “Properties can often be sold with tenants remaining in place, allowing landlords to release capital while providing continuity for tenants.”
