Analysis this summer by TwentyEA showed that in June 2024, 18.4% of all properties listed for sale had previously been available to rent in the three years prior to the listing – a figure 100.6% higher than June 2023, and 34.6% higher than in June 2019.
Now, as we stand on the brink of autumn, Rightmove says the number of former rental properties up for sale is now at its highest level on record. The portal says the exit is most conspicuous in London, where 29% of properties for sale used to be tenanted. The capital is followed by Scotland and the North East, where 19% of available homes for sale were previously available on the rental market.
For context, the previous five-year average for previously rented homes hitting the sales
market is 14%. Rightmove adds that the exodus could gather pace after the Autumn Statement on 30th October, as it’s widely expected the Chancellor will make changes to Capital Gains Tax. This will inevitably make it more expensive to dispose of buy-to-let assets, and a rush to offload may ensue.
The current eviction process
Landlords who want to sell their property with vacant possession without serving notice will have to wait for a tenant to quit. The alternative is to pursue a formal eviction. Until Labour’s Renters’ Rights Bill passes into law, landlords can pursue both Section 21 and Section 8 evictions – and both can be served at the same time.
Section 21s
A Section 21 notice can be served to coincide with the end of a fixed-term tenancy or when there is a break clause in the tenancy agreement. A Section 21 allows a landlord to regain possession of their property without having to give a specific reason, although they will need to give the tenant at least two months’ notice. Common reasons for serving a Section 21 are to sell the property or for the landlord to live in the property themselves.
LandlordBuyer has extensively written about what to do if a landlord is not able to serve a Section 21 notice, identifying the most common reasons a Section 21 will be invalid and providing some alternative strategies.
Section 8s
A Section 8 can be served when the landlord has grounds to evict a tenant. Reasons include unpaid rent, illegal or anti-social behaviour and damage to the property. Sometimes as little as two weeks’ notice is required when serving a Section 8, depending on the severity of the reason.
Best eviction practice? Beat the deadlines!
Despite Labour wanting to ban Section 21 evictions from the moment they took control, the Government still has to follow the Bill-to-Act process. Until the Renters’ Rights Bill gets Royal Assent, it’s a case of ‘as you were’.
More pressing is a forecast hike to Capital Gains Tax. No one is sure how quickly a revision could take effect, but as the TwentyEA and Rightmove figures show, landlords are already exiting buy-to-let in droves.
This sustained increase in landlords selling up is piling pressure on the court system and on conveyancers, and is narrowing down the pool of potential buyers. An alternative is selling a house with sitting tenants to a guaranteed purchaser, such as Landlord Buyer. This avoids the need to serve any kind of eviction notice, nor does the landlord have to wait for a tenancy to end or risk selling on the open market.
Why not explore selling to LandlordBuyer by requesting an instant cash offer? Our quick exchange and completion service will ensure you beat any Capital Gains Tax increase and as landlords can sell to us with tenants in residence, you can forget worrying about the abolition of Section 21s.
Contact LandlordBuyer to learn more about our services.