20 May Sitting tenants on the increase
According to Countrywide, more investors are buying properties with sitting tenants and these results were concluded after the analysis of 65,000 rental properties. This is the highest level since 2005 and according to Countrywide, 11% of all rental properties bought in 2014 had a sitting tenants. This is a four-fold increase on the figures gathered in 2008.
Countrywide state that their stats confirm that the properties which sold with sitting tenants had lived there significantly longer than the average tenant span. 45% of these tenants had signed contracts of 24 months or longer compared. This shows that there is a growing number of tenants which are not affected by the landlord deciding to sell.
Countrywide also state that sitting tenant property sales are happening all over the country and for example, in London and the South East, yields are at their lowest but the proportion of sitting tenants are at their highest. It proves that landlords are more likely to purchase a property with a sitting tenant in place to ensure they receive a rental income straight away which improves their return and is less risky.
According to Countrywide, between the years of 2008 and 2014 the North East of the country experienced the largest increase in landlords buying properties with sitting tenants. If you are looking for a property with a sitting tenant, contact PPS today and we would be happy to help you.