Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.
Landlords Encouraged to Offer Tenants First Refusal Before Selling
Landlord Sales Agency has outlined a process that allows tenants to purchase the rental properties they live in, even if they initially struggle with deposit or mortgage requirements. The agency reports that this approach can benefit both landlords and tenants, with specialist support available to help overcome common barriers to homeownership.
According to the report, landlords are advised to ask tenants if they would like to buy the property before putting it on the open market. The agency has developed a process involving experienced lenders and solicitors to assist tenants in becoming homeowners, sometimes using discounts that would otherwise be offered to investors. This process is designed to help tenants who may not have immediate access to a deposit or who believe obtaining a mortgage would be difficult.
The agency states that landlords can avoid the risks and costs associated with having an empty property while waiting for a sale to complete. Instead, rent can be collected up to completion, and the final proceeds are said to be similar to those from a vacant property sale after accounting for potential void periods.
The process is not suitable for all situations, as tenants must still meet standard mortgage application requirements and pass lender stress tests. The agency claims to address the main hurdle for first-time buyers—raising a deposit—by working with an independent panel of solicitors and specialist lenders.
Landlord Sales Agency also highlights its role in managing the sales process to completion, stating that over 95% of its agreed sales complete, compared to a reported 51% completion rate for landlord sales in 2025, according to Hamptons. The agency attributes this to its collaborative approach, bringing together landlords, tenants, buyers, solicitors, and contractors to resolve issues and keep sales on track.
The report notes that sometimes the solution involves selling to an incoming landlord with tenants in situ, or resolving licensing, finance, or tenancy issues. In other cases, enabling the tenant to buy is the preferred outcome.
Source: Property118