More than £500m worth of rental income is lost annually in this country because buy-to-let landlords are often encouraged to sell properties tenant free, new research shows.
After evicting tenants in order to sell, the average landlord will lose just over three months’ rent, based on the average time taken for a property to sell from point of marketing, according to online buy-to-let marketplace Vesta.
Based on rental data from HomeLet, the loss to a single private landlord typically ranges from £2,757 to £5,514, while Vesta estimates that the total loss to private landlords in this country ranges from £551m to £1.1bn.
The old fashioned practice of evicting good renters is not only losing private landlords critical income, but it is also causing unnecessary distress and costs to thousands of long-term tenants who have to find alternative accommodation as quickly as possible, according to Russell Gould, Vesta’s chief executive.
He commented: “The practice of landlords evicting perfectly good tenants when they want to sell their property is outdated in this day-and-age and highlights that the sector is long overdue for reinvention and transformation.
“You really have to question a process that loses rental income for the seller whilst putting the tenant through huge amounts of stress and cost when it is totally unneccessary.”
He added: “Forecasts suggest that 380,000 private landlords are planning to sell their properties in the next 12 months resulting in thousands of tenants facing unnecessary evictions.
“We want the buy-to-let sector to realise that there are viable alternatives to the traditional model that are both socially responsible and financially beneficial to investors, landlords and their tenants.”