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TODAY'S OTHER NEWS

Where are buy-to-let investments with a tenant already in situ most in-demand?

Buy-to-let investments with a tenant already in situ are most in-demand across Glasgow, according to Howsy. 

The letting management platform reports that Leeds and Bristol are also in high demand. 

Buying a property with a tenant in situ means there is already a tenant living in the property and depending on the terms of their letting agreement, they are legally allowed to see out their tenancy even if the property changes hands via a sale.

Providing the tenant is a good one, buying with a tenant in situ can bring a number of benefits.

Calum Brannan, founder and CEO of Howsy, commented: “Providing the tenant is the sort of person you want to rent to in the first place, purchasing a buy-to-let with a tenant in situ is the modern-day equivalent of the golden fleece for UK landlords.

“It can take a whole lot of the headache out of the initial start-up phase of your investment, reducing the initial rental void period usually suffered while finding a tenant, as well as saving on agent finding fees.”

Table shows the percentage of stock with a tenant in situ in each city already under offer or sold subject to contract

Location

Buyer Demand (%)

Glasgow

62%

Leeds

55%

Bristol

55%

Nottingham

51%

Edinburgh

50%

Cambridge

47%

Southampton

40%

Cardiff

38%

Portsmouth

37%

Birmingham

33%

Newport

32%

Manchester

31%

Newcastle

30%

Liverpool

24%

Plymouth

21%

Oxford

21%

Sheffield

20%

Bournemouth

17%

London

15%

Leicester

11%

Swansea

11%

Aberdeen

0%

Belfast

0%

Meanwhile, Cardiff, Oxford and Leeds are home to the highest chance of buying a buy-to-let complete with a tenant. 

Howsy’s research shows that across 23 major UK cities, 0.8% of all properties currently listed for sale come with a tenant in situ. This means the chances of finding the right property to invest in, and it coming complete with a tenant, are slim.  

Cardiff is home to the highest number of homes for sale with a tenant in situ, but they account for just 3.7% of all homes listed.  

Oxford (3.1%), Leeds (2.9%), Newport (2.3%) and Portsmouth (2.1%) are also home to more than two per cent of available property stock with a tenant in situ.

Brannan added: “Of course, you may want to revamp your buy-to-let to appeal to a certain market segment and so having a tenant in situ may not seem like a great idea. However, on the contrary, it can also provide a perfect platform for this work.

“Not only do you have time to plan your property overhaul while the tenancy runs down, but you’re also earning additional income while you do, which will help towards the costs. 

“Unfortunately, buy-to-let properties for sale with a tenant in situ are few and far between, although there are certain pockets where you have a better chance than others.”

able shows the percentage of total stock in each city for sale with a tenant in situ

Location

Stock Level (%)

Cardiff

3.7%

Oxford

3.1%

Leeds

2.9%

Newport

2.3%

Portsmouth

2.1%

Cambridge

1.8%

Swansea

1.7%

Southampton

1.6%

Glasgow

1.2%

Nottingham

1.2%

Liverpool

1.2%

Bournemouth

1.1%

Sheffield

1.0%

Leicester

1.0%

Manchester

0.8%

Birmingham

0.8%

Bristol

0.7%

Belfast

0.5%

Plymouth

0.5%

Aberdeen

0.4%

Newcastle

0.4%

London

0.3%

Edinburgh

0.2%

All

0.8%

  • icon

    ha ha... BTL and a "binding tenancy" - guaranteed way to kiss goodbye to 12 months of income ?

    Paul Barrett

    Yep you would be totally correct.
    If LL cannot easily get rid of rent defaulting tenants then there is NOT much point in being a LL.

    If there are fewer LL then mass homelessness awaits many existing tenants.


    Just the simple expedient of allowing LL to get rid of rent defaulting tenants very quickly without requiring Court action would transform the rental sector for the better.
    There would certainly be many more LL prepared to let to let us say the more 'difficult' tenants.

    It makes no economic sense getting rid of tenants who pay their rent.

    LL only wish to get rid of rent defsulting tenants quickly.

    I'm afraid tenants cannot expect to live like parasites on the backs of LL.

     
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    Paul below is correct, If landlords could get rid of non paying tenants then life would be very much easier for good honest paying tenants, and then we might even start to consider tenants on benefits

     
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    As opposed to the Paul that is above ?.. oh no, there is only one Paul - he could be sideways for all it matters ?..

    and your comment is superfluous - after all, it's all we ever hear, time and time again, on this forum ?

     
  • Paul Barrett

    Seb
    How else would you like the comments to be!?

    They are hardly superfluous.
    The content is still correct whether you like it or not.
    A reality is just that........a reality!!

    icon

    seriously ?.. ""If landlords could get rid of non paying tenants then life would be very much easier for good honest paying tenants"".

    Okay, I'll get my coat.

     
  • icon

    Well gents that's enough for tonight I'm now going to have a nice large Irish.

  • icon

    Seb' you are very rude by if my Auntie had those she would be a man woman and fit very well in today's Society.

  • icon

    Are we heading back to the 1960's when it was nearly impossible to get somewhere to rent because if you let anyone in they immediately became a sitting Tenant a bit like now, so that didn't work very well did it which is why the Laws had to change, short memories or maybe you weren't born & have to relearn again the hard way, a bit like the Recessions that comes around every so often as another generation comes on the seen & it has to happen to them before they believe it, broadly we humans are stupid.

    Paul Barrett

    Yep I believe it is an oft quoted saying.

    Those who forget the lessons of history are destined to repeat them!!



    Looks like idiot GR etc are looking forward to far fewer rental properties and mass homelessness!

    Thatcher stopped that by introducing S21; S8 and the AST.
    Consequently the PRS expanded to meet demand.
    A very successful change to PRS legislation.

    Now it seems we are destined to return to the dark days before these changes.
    That definitely means I'm out of being a AST LL.
    I won't suffer but my homeless tenants will!

     
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