More portfolio landlords looking to sell but competition strong for tenanted property, agency says

According to the Landlords Sales Agency, the highest percentage of enquiries looking to sell were from landlords with portfolios of 20 properties or more. It added that it was averaging 240 enquiries a month from landlords looking to offload property.

However, three quarters of its agreed sales in the last year have managed to retain the current tenants in the switch to a new landlord buyer.

David Coughlin, managing director of The Landlord Sales Agency, said: “We have a market right now which is not serving landlords, tenants or homeowners.

“No-one wins. Rising interest rates, higher bills and tighter regulation are making it impossible for some landlords to remain in the market as their retirement plans no longer stack up financially.”

The financing squeeze

He continued that one landlord with 50 houses was unable to refinance as no lenders would lend, and another with 40 properties had a £6,000 per month mortgage deficit, so their only option was to sell.

“That’s just two examples, and on average more than 200 tenants who could stand to lose their home,” Coughlin noted.

He continued that there was a “critical need for rental properties” in the UK and it was working with landlords to try and keep properties in the private rented sector by selling tenanted properties.

The agency has helped tenants pay current rents, paid off arrears, paid for tenants to relocate and in some cases paid tenants’ rent in advance for the next landlord.

It has also built relationships with local councils across the UK who can support a tenants’ rent payments, clear outstanding funds and pay off legal cost in “challenging cases”.

“We’re trying to help both landlords and tenants navigate their way through this extremely challenging time.

“Tenants are having to accept rent rises, and in 50 per cent of the sales we have agreed, the tenants have opted to stay with a higher rent because they know fierce competition for rental properties could see them paying even more elsewhere,” he noted.