Many buy-to-let landlords are reluctant to sell a tenanted property because it can increase the chances of the sale falling through compared to selling a vacant property.
Tenants naturally want to avoid the uncertainty of potentially having to find a new home, but property website Vesta believes that it has created a platform that will help landlords reassure and support their tenants, encouraging them to cooperate during the sales process.
Vesta last week launched a new digital property marketplace for the private rented sector (PRS), designed to support growing institutional investment, which could bring the UK’s PRS more in-line with the US and other European markets.
The new marketplace also offers properties with ‘tenants in place’, ensuring that sellers earn all the way to completion, while buyers earn rental income from day one, and tenants avoid disruption to their lives.
Russell Gould, Vesta’s chief executive, commented: “Within the next five years, we strongly believe that Vesta will be the norm for the residential investment property sector, bringing together housebuilders, buy-to-let sellers, buyers and property investors.”
Many homes in the PRS are owned by small investors who buy and sell properties that are vacant and unfurnished, but Gould argues that this is “costly, time consuming and often a painful experience for tenants and landlords”.
He added: “With less rental and capital growth on the horizon, costly tax changes relating to both stamp duty and interest set offs and tougher rules around mortgage terms, there’s an enormous potential in our trading platform to attract institutional investors, a government policy objective.”