x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Private tenants want long-term security even after the landlord sells

Almost fourth-fifths of renters do not want to move property due to a change in ownership, a fresh study shows.

The research, undertaken by Vesta Property, found that private renters generally do not care about who their landlord is or locking in to a long-term tenancy with them.

What they do care about is being able to stay in the property regardless of change in ownership, with 78% of tenants’ surveyed saying that they want the option to stay in their homes even if their landlord sells to another buy-to-let investor.

Some 79% of respondents think it is ‘ridiculous’ for a landlord to evict a tenant simply for the new landlord to replace them, while 70% of tenants do not care who their landlord is – as long as the property and their contract remain the same if the property is sold

Based on average rents and voids during the time period it takes to sell a property, Vesta Property calculates that landlords collectively lose about £550m each year in lost rental income due to early eviction, the void during the selling and purchase process, and the delays in finding a new tenant when a property is purchased.

Russell Gould, CEO at Vesta Property, said: “Discussions such as enforcing three-year tenancies have raised strong reactions from both landlords and tenants who do not want to have their hands tied. This is not to say that tenants do not want to stay in their homes - far from it. But the answer is not to make the system more rigid, it is to move with the times and mould it into something that works for both landlords and tenants alike.

“If a landlord needs to sell their property they should absolutely have the right to do that within a time frame that suits them and ideally without losing rental income. But equally, their settled tenants should not suffer and lose their home because of it. Nor do they need to. The practice of advising a landlord to evict tenants in order to sell a property is outdated.

“New models like Vesta offering tenant in place sale and purchase, satisfy both the needs of tenants who want to keep their home and landlords or investors who wish to sell or buy.”

Poll: Would you prefer to sell a property with a tenant in-situ?

PLACE YOUR VOTE BELOW

  • icon

    I tried to sell a property with tenants in situ. Disaster! Place never clean and tidy for viewing and only ludicrous offers. After the lease finished, we marketed the property as if we lived in it ourselves and sold it within 2 weeks at the top end of our expectations. I would never try to sell a property with tenants in situ, as any loss of rent is small compared to the difference in selling price achieved. I've also bought a property with sitting tenants and got a bargain then.

  • icon

    Luck of draw. Sold nice 2 bed flat with tenant in and got full market price. No rent loss and no work to property or council theiving tax to pay!

    icon

    Me too. 2 bed flat sold with tenants who agreed to stay right up to two days before completion. Perfect but risky if they hadn't gone. I may not be so brave when it comes to selling any of my larger properties.

     
  • icon

    Many properties sold with tenant are sold under value, that's why at auction they are generally sold with vacant possession.
    It also limits the market you can sell too,if someone else wishes to live in it!!
    Never had a tenant stay 3 years, and they can anyway already fairly easily by looking after the property & paying the rent....easy!

icon

Please login to comment

valpal
submit
sign up