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 Encounter More Hurdles in Selling Buy-to-Let Properties
Landlords are facing greater challenges when selling their property portfolios, as highlighted in a recent report by Property118. New regulations such as the Renters’ Rights Act, Making Tax Digital, and stricter Right to Rent checks are contributing to a more complex sales environment for those in the private rented sector.
The report notes that a tougher sales market and the introduction of a 12-month re-letting ban have made the process of selling buy-to-let properties more complicated. According to Hamptons, the average house took 59 days to go under offer in June, and analysis of landlord sales in 2025 found that 51% of landlord house sales failed to complete.
Despite these challenges, some agencies report that most of their buy-to-let sales complete within 28 days, with over 95% of accepted offers reaching completion. This is achieved by securing sales with a non-refundable deposit as soon as an offer is accepted, and buyers are required to complete within 56 days of notice.
The report also highlights that many landlords are choosing to sell with tenants in situ, rather than risk having an empty property that cannot easily return to the rental market. Some sellers are willing to accept 85–90% of vacant possession value to achieve a quicker sale.
A recent example cited in the report involved a Lincoln HMO where a licensing issue threatened to derail the sale. The property was intended as a nine-bed HMO, but only a six-bed licence was initially granted. After two lenders declined the deal, the agency worked with a specialist broker, surveyor, lender contacts, and the council to secure an upgraded licence, allowing the sale to proceed once the required works were completed.
The report concludes that whether landlords are selling a single property or an entire portfolio, practical solutions can often be found to overcome complications. Agencies may also assist with tenant negotiations and relocation where vacant possession is required.
Source: Property118