"At first glance, this decline suggests that fewer landlords are selling up and leaving the market altogether, which challenges some of the wider narrative around a mass landlord exodus"
- Sim Sekhon - Propoly
The number of homes listed for sale with tenants in situ has fallen by nearly 44% over the past two years, according to residential listings analysis by property technology firm Propoly, as the Renters' Rights Act prompts landlords to think more carefully about inheriting tenants they have not personally vetted.
Propoly's data puts the current national total at an estimated 6,973 tenants in situ properties listed for sale, down from 12,423 two years ago, a decline of 43.9%.
The South East has seen the sharpest regional fall, with listings dropping 60% over the period. Yorkshire and Humber follows at 56.3%, then the East of England at 54.9%, the East Midlands at 54.2% and the West Midlands at 53.5%.
The North West currently carries the largest concentration of tenants in situ stock, with 1,909 listings representing 27.4% of the national total, reflecting the region's significant buy-to-let base. The South East accounts for 11.2% of all such listings nationally, followed by Yorkshire and Humber at 11.1%, the East Midlands at 10.4% and the West Midlands at 8.8%. London and Scotland have the smallest shares, at 3% and 3.7% respectively.
"At first glance, this decline suggests that fewer landlords are selling up and leaving the market altogether, which challenges some of the wider narrative around a mass landlord exodus," said Sim Sekhon, group chief executive officer at Propoly.
"However, the more significant shift is in landlord appetite when it comes to taking on tenants already in situ. The Renters' Rights Act has created a market where landlords face greater long-term exposure and less flexibility once a tenant is in place, which naturally makes investors more cautious about inheriting occupants they have not personally vetted themselves.
"What this data really highlights is a changing investment landscape across the rental sector. Landlords are becoming far more selective about the properties they purchase, and many are increasingly reluctant to take on existing tenants without having carried out their own referencing and due diligence process."
