The latest market analysis from property purchasing specialist, House Buyer Bureau, shows that thousands of landlords across Britain are selling-up before their tenancy agreements have even ended, causing great uncertainty and potential eviction for the tenants who remain in-situ.
House Buyer Bureau analysed current for sale stock across the market in Britain and what proportion of this stock is listed for sale with tenants still in-situ who are yet to come to the end of their tenancy agreement.
Recent months have seen a landlord exodus from Britain’s buy-to-let market due to rising mortgage rates making it more difficult than ever to earn a profit from rental income.
In fact, previous research has recently shown that buy-to-let mortgage arrears are worsening at a faster rate than they are for homeowners, demonstrating just how difficult it is for landlords at the moment.
As a result, it seems that thousands of Britain’s landlords are putting their properties up for sale before their current tenancy has even come to an end.
In fact, House Buyer Bureau’s new findings reveal that there are currently 12,518 properties listed for sale while still having tenants in-situ.
20% (2,545) of these properties are for sale in the North West, while 17% (2,188) are listed in the South East.
Yorkshire & Humber accounts for 13%, followed by the East of England (12%), East Midlands (11%), and West Midlands (11%).
Managing Director of House Buyer Bureau, 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. 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.
As our research shows, thousands aren’t even waiting until their existing tenants come to the end of their agreement. And 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. 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.”