New legislation might be hitting number of landlords

The number of people renting properties forced to move home due to their landlords selling up has seen a substantial increase according to a recent survey from landlord insurance company, Cover4LetProperty.

The survey examined the reasons why private tenants move from one rented property to another and to see whether the move is influenced by the landlord, property or by circumstances.

In previous surveys, landlords deciding to sell their property hadn’t been given as a reason, making its appearance high up on the list all the more notable.

The government has brought in a raft of new legislation including a rise in stamp duty and making them responsible for costs that had previously been passed on to tenants.

Covering the last five years, the study examined the reasons why tenants moved from one rented home to another.

The reasons included tenants moving to a different area (27%); moving due to cost (27%); landlord deciding to sell up (11%), while some tenants decided to change properties because they wanted to move to a bigger home (8%).

Richard Burgess, director at the landlord insurance specialists says “Our survey this time highlighted two standout results for us. Firstly, that tenants moving due to bad property conditions has decreased, suggesting that let properties are being improved and invested in. And, for the first time, we see that tenants are moving because landlords are selling up.

“While this could be simply due to landlords realising profits in their property, it could also be that increased legislation and fees are making it much more difficult for landlords to make a sustainable profit. Only time will tell if this trend continues.”

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