Many tenants face the uncertainty of potentially having to find a new home as a result of a change in ownership, with a fifth of millennials - 21% - having already been forced to leave their rented accommodation before they were ready because their landlord wanted to sell their property vacant.
The research from online property marketplace Vesta Property claims that 39% of millennials fail to understand exactly what their rights are as tenants when their landlord sells, while 32% somewhat surprisingly did not know that tenants could be legally served notice to vacate even if they have done nothing wrong.
The study indicates that most private renters would prefer to stay in the property regardless of change in ownership, with 77% of tenants’ surveyed saying that they want the option to stay in their home even if their landlord sells to another buy-to-let investor.
Russell Gould, CEO Vesta Property, said: “The current buying and selling system, where good tenants are evicted for no reason other than to sell a property, makes life harder for everyone.
“Buyers have to find new tenants, sellers can lose valuable income and renters are forced to disrupt their lives by finding new accommodation.
Vesta last year launched a digital property marketplace enabling landlords to offer properties for sale 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.
Gould added: “The sector needs to move with the times and mould the system into something that works for both landlords and tenants alike. Specifically, the practice of advising a landlord to evict tenants in order to sell a property is outdated.
“The sector needs new models such as Vesta that offers tenants-in-place during the sale process thereby satisfying tenants who want to keep their home and landlords who wish to sell.”