Thousands of cash-strapped landlords are selling up before their tenancy agreement ends, causing uncertainty and potential eviction for the remaining tenants.
House Buyer Bureau’s research reveals 12,518 properties currently listed for sale with tenants in-situ; 20% (2,545) of these are in the North West, 17% (2,188) are in the South East, while Yorkshire & Humber accounts for 13%, followed by the East of England (12%), East Midlands (11%), and West Midlands (11%).
Rising interest rates – making it more difficult to earn a profit from rental income among those coming off fixed-term mortgages – have prompted this landlord exodus, says MD Chris Hodgkinson (pictured), who explains that those with only one or two properties are facing mortgage cost increases they simply can’t keep up with.
“While some are trying to combat this by passing the cost onto their tenants, others are simply selling up and getting out of the game,” says Hodgkinson.
“That’s how bad it’s become. As our research shows, thousands aren’t even waiting until their existing tenants come to the end of their agreement.”
Evictions
Although tenants are legally entitled to stay put until the end of their tenancy agreement, they are effectively being sold as part of the house and their mid to long-term fate is being decided by whoever buys the property, he adds.
This could mean a possible eviction to make way for the new owner-occupier or higher rent.
“Whatever the outcome, it’s causing unsustainable levels of stress and concern for renters at a time where stress and concern are already at a high.
“With the current economic picture remaining uncertain at best, there’s a high chance that more buy-to-let properties will be up for sale, resulting in even fewer opportunities for tenants.”
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