Why Off-Market Property Sales Are Becoming The New Normal

This year, the English private rental sector is seeing the biggest shake-up in a generation. Under the Renters’ Rights Act, tenancies are changing, evictions are changing – and as a consequence, the way landlords buy and sell is changing.

We are seeing two significant trends in investment property sales:

1. The rise of sales with tenants in situ
2. An increase in off-market sales

Landlord Property Exchange was created to make both these processes easier, because they benefit everyone involved.

In our latest video blog, LP Exchange founder James Donohue explains the factors behind the boom in off-market sales.

Just as the name implies, these are property sales that are not advertised through the traditional channels: estate agents, property portals, auctions and so on. Instead, agents use their networks to identify potential buyers and make discreet enquiries without the general public ever seeing the property.

In the past, this sale route was often associated with top-end property owned by high-net-worth individuals who value discretion. It’s estimated that around half of London property over £2m is sold this way. Increasingly, however, landlords at all price levels are seeing the benefit of this approach, especially when tenants are in place.

The Renters’ Rights Act, with its abolition of Section 21 evictions, has made selling with tenants a much more attractive prospect. Sellers who are looking for a smooth exit want to keep tenants in place so they keep on receiving rental income right up to the point of sale. This way they also avoid the hassle and delays associated with gaining possession, the post-tenancy expenses and paperwork, and the risk of being left with an empty property they can’t sell quickly.

Traditional sales methods are not well set up for tenanted property. Estate agent photographs and public viewings can be difficult to arrange with tenants, and in cases where a landlord wishes to sell multiple portfolio properties in one area, public listings also risk creating a perceived imbalance in supply and demand. 

Off-market sales also allow a landlord to discreetly test the water, gauging interest without committing to a public listing. And finally, the nature of this sales method means that it attracts serious investors: people who understand the market and value a rental property for the right reasons. 

In a rapidly changing market, what investment buyers value most of all is clarity. Off-market sales filter out the noise of public listings and allow them to see what really matters: how the property works as an investment.

Off-market deals aren’t polished for public consumption: instead you get to see the important details: real yield, income behaviour over time, long-term tenant stability.

Off-market sales are the perfect fit for a changing market that values clarity more than ever. Buyers save time and hassle, tenants avoid the disruption of public sales, and buyers can focus on what matters most.

Whether you want to sell your property direct to investors or you are looking for your next deal, the Landlord Property Exchange platform is the place to make a connection.