A recent analysis conducted by property purchasing specialist, House Buyer Bureau, has shed light on a noteworthy trend within the rental property market. A growing number of landlords are choosing to sell their properties prior to the culmination of existing tenancy agreements, leading to potential challenges for the remaining tenants.

House Buyer Bureau's study involved a comprehensive examination of the current inventory of properties available across the UK. The focus was directed towards properties still housing tenants who are yet to reach the end of their contractual lease terms.

In recent months, a discernible shift has taken place in the buy-to-let landscape. Rising mortgage rates have prompted landlords to reevaluate their investments, making it increasingly challenging to generate profitable rental income.

Research has also highlighted a concerning trend – delinquency rates for buy-to-let mortgages are on the rise at a faster pace than those of homeowners. This suggests a considerable struggle faced by landlords amidst the current economic climate.

As a response to these challenges, a growing number of landlords are opting to list their properties for sale even before the expiry of their tenants' lease agreements. House Buyer Bureau's findings reveal that a total of 12,518 properties are currently listed for sale while tenants are still in residence.

A geographic breakdown indicates that 20% (2,545) of these properties are located in the North West, while 17% (2,188) are situated in the South East. Other regions include Yorkshire & Humber (13%), the East of England (12%), and both the East Midlands and West Midlands (11% each).

Chris Hodgkinson, the Managing Director of House Buyer Bureau commented: “Landlords often get a lot of stick. Tenants see the price of rent going up and often assume it’s the result of landlord greed, but this simply isn’t the case. Certainly not anymore. Landlords – especially those who own just one or two properties – are facing mortgage cost increases that they simply cannot keep up with.

“And while some are trying to combat this by passing the cost onto their tenants, others are simply selling-up and getting out of the game. That’s how bad it’s become.”As our research shows, thousands aren’t even waiting until their existing tenants come to the end of their agreement.

“And while these tenants are legally entitled to stay put until the end of their tenancy agreement, they are effectively being sold as part of the house and their mid-long-term fate is to be decided by whosoever buys the property.

“This could mean that an eviction is on the horizon to make way for the new owner-occupier. It could mean that higher rent will be demanded. Whatever the outcome, it’s causing unsustainable levels of stress and concern for renters at a time where stress and concern are already at a high.”

In conclusion, Hodgkinson said: “With the current economic picture remaining uncertain at best, there’s a high chance that more buy-to-let properties will be up for sale, resulting in even less opportunities for tenants.”