More than 8,500 homes with tenants in situ are currently being marketed for sale across England, with northern regions accounting for the highest concentrations, new research reveals.
Analysis by The Letting Partnership (TLP) identifies an estimated 8,553 tenanted properties among the 470,922 homes currently listed for sale, equivalent to 1.8% of available stock.
The figures highlight the number of properties changing hands with an existing tenancy attached, potentially allowing landlords to acquire investments that generate rental income immediately rather than facing an initial void.
However, TLP warns that agents and landlords need to ensure deposits, rent payments and other client money are correctly accounted for when ownership changes.
NORTHERN CONCENTRATION
Yorkshire and the Humber has the highest proportion of tenanted properties for sale, with 1,575 accounting for 5.1% of available stock.
The North West has the largest number, with 2,227 tenanted properties currently being marketed. They represent 4.6% of homes for sale across the region.
A further 601 are on the market in the North East, equivalent to 4.3% of available stock.
The picture is markedly different across southern England. Just 0.3% of properties listed for sale in London have tenants in situ, rising to 0.7% in the South West and 0.9% in the South East.
CLEAN HANDOVERS
TLP says buying with a tenant in place can provide landlords with an established income stream while avoiding the cost and time involved in finding a new tenant.
But the transaction also transfers an existing tenancy and its financial history to the new landlord.
That means the tenancy deposit and its protection arrangements need to be checked, while rent ledgers should be reconciled to identify any arrears or outstanding balances.
Where a sale completes part-way through a rental period, rent already collected may also need to be apportioned between the outgoing and incoming landlords.
CLEAN HANDOVER
Chris Mason (main picture, inset), Chief Operating Officer at The Letting Partnership, says: “Landlords need to remember that they aren’t just acquiring the property and the tenant, they’re also taking on the financial history of that tenancy.
“That means understanding exactly where the deposit sits and how it is protected, whether the rent account is completely up to date and whether there are any outstanding balances.”
He adds: “The ownership of the property might change overnight, but the tenancy doesn’t, and neither does everything that has happened financially before completion.
“For landlords and agents alike, a clean handover means knowing exactly what money is held, what has been paid, what remains outstanding and ensuring the records supporting that position transfer with the tenancy.”
