The number of homes being marketed for sale with tenants already in place has fallen sharply over the past two years, according to new research from Propoly, amid growing caution among landlords ahead of the Renters’ Rights Act.
Analysis of residential listings data across Britain found there are currently an estimated 6,973 properties for sale with tenants in situ, down 43.9% from 12,423 two years ago.
The figures suggest some landlords are becoming more reluctant to purchase properties with existing tenants attached, particularly as regulatory changes reshape the private rented sector and make possession processes more restrictive.
The South East recorded the largest regional fall, with the number of in situ listings dropping by 60% over the two-year period. Yorkshire & Humber saw a decline of 56.3%, followed by the East of England at 54.9%, the East Midlands at 54.2% and the West Midlands at 53.5%.
Despite the decline, the North West continues to account for the largest share of tenant-in-situ listings, with 1,909 properties currently on the market, representing more than a quarter of the national total. The region’s large concentration of buy-to-let housing stock is thought to be a key factor.
By contrast, London and Scotland recorded the smallest proportion of in situ listings currently available for sale.
Sim Sekhon, group CEO at Propoly, commented: “At first glance, this decline suggests that fewer landlords are selling up and leaving the market altogether, which challenges some of the wider narrative around a mass landlord exodus.
“However, the more significant shift is in landlord appetite when it comes to taking on tenants already in situ. The Renters’ Rights Act has created a market where landlords face greater long term exposure and less flexibility once a tenant is in place, which naturally makes investors more cautious about inheriting occupants they have not personally vetted themselves.
“What this data really highlights is a changing investment landscape across the rental sector. Landlords are becoming far more selective about the properties they purchase, and many are increasingly reluctant to take on existing tenants without having carried out their own referencing and due diligence process.”
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