The proportion of tenanted properties being sold at auction has returned towards historic levels following a sharp spike in landlord disposals ahead of the Renters’ Rights Act.
New analysis from Property Auction Data shows tenanted property sales surged during 2024 as uncertainty grew over reforms to the private rented sector.
Tenanted auction sales increased 21.8% year-on-year in the second quarter of 2024 before jumping 48.4% in the third quarter.
But that increase proved relatively short-lived, with tenanted properties accounting for 10.2% of residential auction sales during the first half of 2026 – broadly in line with levels recorded before the 2024 spike.
LANDLORD DISPOSALS
The analysis suggests some landlords may have used auction to exit investments while retaining tenants, allowing rental income to continue until completion and giving buyers an immediately income-producing property.
Tenanted properties accounted for 13.3% of auction sales in the first half of 2024 before their share dropped to 9.9% in 2025 and edged back to 10.2% this year.
Property Auction Data says first-half volumes of tenanted sales in 2022, 2023 and 2026 are broadly similar, suggesting 2024 represented an unusually active period for landlord disposals rather than the beginning of a sustained increase.
VACANT STOCK
Vacant property sales have continued to increase, however, against a backdrop of wider growth in the auction market.
The report suggests previously rented homes could be contributing to that increase as landlords who decided to exit regained possession before bringing properties to auction.
Some may have sought vacant possession ahead of the Renters’ Rights Act taking effect in May, although the auction data cannot establish the reasons behind individual landlord decisions.
Vacant former rental properties can potentially appeal to investors looking for refurbishment opportunities or homes that can be returned to the private rented sector.
EARLY DAYS
The Renters’ Rights Act has changed how landlords regain possession, including abolishing Section 21 ‘no-fault’ evictions, although landlords retain grounds to recover properties when they intend to sell.
Property Auction Data cautions that it remains too early to determine the longer-term impact of the legislation on auction stock.
The figures nevertheless suggest the initial surge in tenanted landlord disposals seen in 2024 has subsided, despite the subsequent implementation of the reforms.
Auction continues to provide landlords with routes to sell both vacant properties and investments with tenants remaining in situ.
Stuart Collar-Brown, President of NAVA Propertymark (National Association of Valuers and Auctioneers), says: “EIG’s latest report reflects how auction has firmly established itself as an important part of the property market. For sellers, it can provide speed and certainty, while for buyers it can open up opportunities to purchase a wide range of property.
“As auction becomes more familiar to the public, it is important that consumers understand what makes the process different from a traditional sale. Buyers should have access to clear information about the property, the legal pack and any additional costs, so they can bid with confidence and know exactly what they are committing to.
“This is particularly important for properties where there may be additional considerations, such as leasehold arrangements, works required or an existing tenancy. Clear and accurate information benefits everyone: it helps buyers make informed decisions while giving sellers confidence that their property is being marketed responsibly.”
