Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Over 8,500 Tenanted Homes for Sale Across England
More than 8,500 homes with tenants already in place are currently being marketed for sale across England, according to analysis by The Letting Partnership. The latest figures show an estimated 8,553 properties are being advertised with tenants in situ, representing 1.8% of the 470,922 homes listed for sale across England.
Yorkshire and the Humber has the highest proportion of tenanted properties relative to its available sales stock, with an estimated 1,575 properties being marketed with tenants in situ. This is equivalent to 5.1% of the 31,143 properties currently listed for sale in the region. The North West has the largest number of tenanted properties for sale, with 2,227 listings, representing 4.6% of the region’s available sales stock. The North East ranks third, with 601 tenanted properties accounting for 4.3% of the 14,113 homes currently listed for sale.
At the other end of the scale, London has the lowest proportion of tenanted homes for sale, with tenants in situ accounting for just 0.3% of available sales listings. The figure rises to 0.7% in the South West and 0.9% in the South East.
For landlords looking to expand their portfolios, purchasing a property with an existing tenant can provide an established income stream from the point of completion. The incoming owner can potentially avoid the initial void period associated with an empty property, as well as the time and expense involved in finding and securing a new tenant.
The Letting Partnership advises that buyers need to look beyond the property itself and understand the financial position of the tenancy they are acquiring. This includes knowing where the deposit sits and how it is protected, whether the rent account is up to date, and if there are any outstanding balances. If completion takes place part-way through a rental period, there may also be rent already collected that needs to be correctly apportioned between the outgoing and incoming landlord.
Source: Mortgage Strategy