The number of homes being sold with tenants in situ has fallen by almost 44% in the last two years, according to new research from Propoly, as landlords grow increasingly cautious about inheriting tenants they have not personally vetted in the wake of the Renters’ Rights Act.
Propoly has analysed residential listing data across Britain and found that there are currently an estimated 6,973 properties for sale with existing tenants in situ. This is 43.9% fewer than there were two years ago when the total stood at 12,423.
The South East has seen the nation’s biggest regional decline at 60%, followed by Yorkshire & Humber at 56.3%, the East of England at 54.9%, the East Midlands at 54.2%, and the West Midlands at 53.5%.
The North West currently has the largest number of in situ properties on the market, with 1,909 listings accounting for 27.4% of the national total, reflecting the region’s strong concentration of buy-to-let stock. The South East is home to 11.2% of all in situ properties, followed by Yorkshire & Humber at 11.1%, the East Midlands at 10.4%, and the West Midlands at 8.8%.
London and Scotland account for the lowest shares of in-situ properties currently listed for sale, at just 3% and 3.7% of the national total, respectively.
Sim Sekhon, Group CEO at Propoly, said: “At first glance, this decline suggests that fewer landlords are selling up and leaving the market altogether, which challenges some of the wider narrative around a mass landlord exodus.
However, the more significant shift is in landlord appetite when it comes to taking on tenants already in situ. The Renters’ Rights Act has created a market where landlords face greater long-term exposure and less flexibility once a tenant is in place, which naturally makes investors more cautious about inheriting occupants they have not personally vetted themselves.
What this data really highlights is a changing investment landscape across the rental sector. Landlords are becoming far more selective about the properties they purchase, and many are increasingly reluctant to take on existing tenants without having carried out their own referencing and due diligence process.”
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