New analysis suggests that over 8,500 properties with tenants in situ are currently listed for sale across England. The Letting Partnership (TLP) estimates that these 8,553 tenanted homes account for 1.8% of the 470,922 properties currently on the market.
The figures highlight the number of existing tenancies that could change hands between landlords. TLP advises agents involved in these transactions to ensure that deposits, rent payments, and client money are transferred correctly to the new landlord.
Northern regions show a higher proportion of tenanted properties for sale. Yorkshire and the Humber has approximately 1,575 tenanted homes on the market, making up 5.1% of its available sales stock. The North West has the largest number, with 2,227 tenanted properties listed, representing 4.6% of its stock. In contrast, London has just 0.3% of available properties marketed with tenants in situ, while the South West and South East have 0.7% and 0.9% respectively.
Buying a property with a tenant already in place can allow a landlord to receive rent immediately and avoid an initial void period. However, this also means transferring an existing tenancy and its financial history. TLP recommends that agents check tenancy deposits and establish how existing protection arrangements will transfer or require re-registration. They should also reconcile the historic rent ledger to confirm if the tenant is up to date or if any arrears remain.
Completion dates can also create accounting issues, especially if completion occurs part-way through a rental period. In such cases, the rent may need to be apportioned to reflect the period each landlord owns the property. TLP stresses the importance of a clear audit trail covering deposits, rent received, outstanding balances, and other relevant financial information, as the financial history of an existing tenancy does not restart from zero when ownership changes.