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 The practice of advising a landlord to evict tenants in order to sell a property is outdated.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.”