Study reveals tenants suffer when a landlord sells
New research reveals the number of tenants in the private rented sector who leave their home before they are ready to as a result of a change in ownership.
Some 21% of those aged 35 to 44 years old have had to move because their landlords has decided to sell, according to the study from online property marketplace Vesta Property.
The research also found that 39% of millennials do not understand exactly what their rights are as tenants if their landlord sells and 32% didn’t know that tenants could be evicted even if they have done nothing wrong.
When asked if they would prefer to rent a property that allowed them to remain, even if the property was sold, the majority, some 77%, confirmed that they would.
The reality of how hard non-fault evictions can be on tenants as a result of selling a rental property is also revealed. Some 9% said that the stress of being evicted has caused mental health issues and 14 % said that they have suffered financially as a result.
According to the firm the findings suggest that the current residential property buying and selling system is not fit for purpose.
When made aware of the current system and their tenants’ rights, 79% of respondents agreed that it is ridiculous for a landlord to evict a settled tenant simply for the new landlord to replace them.
‘The current buying and selling system, where good tenants are evicted for no reason other than to sell a property, makes life harder for everyone,’ said Russell Gould, chief executive officer of Vesta Property.
‘Buyers have to find new tenants, sellers can lose valuable income and renters are forced to disrupt their lives by finding new accommodation. The sector needs to move with the times and mould the system into something that works for both landlords and tenants alike,’ he explained.
‘Specifically, the practice of advising a landlord to evict tenants in order to sell a property is outdated. The sector needs new models such as Vesta that offers tenants in place during the sale process thereby satisfying tenants who want to keep their home and landlords who wish to sell,’ he added.