The Intermediary – September 2026 - Flipbook - Page 16
BUY-TO-LET
In focus
Overlooked
opportunities in
landlord sales
W
hen a landlord
decides to
sell, the
assumption
is oen that
a property
is being lost from the private rented
sector (PRS).
It’s an understandable conclusion.
Rising costs, regulatory change and
ongoing market pressures mean
many landlords are reassessing
their portfolios.
Aldermore’s latest Buy to Let City
Index shows that almost a third of
landlords are considering leaving the
PRS, while 22% have already sold part
of their portfolio.
But focusing purely on landlords
exiting risks missing a much bigger
opportunity. Every landlord sale
creates a decision point. Will another
landlord buy the property and keep
it within the rental sector? Or could
the siing tenant become the buyer
and take their first step onto the
property ladder?
For brokers, these conversations
present an opportunity to add real
value for both landlords and tenants.
One landlord to another
One route we are hearing about more
frequently is the sale of a property
from one landlord to another. It
doesn’t generate the headlines, but it
remains an important part of how the
market continues to evolve.
For the purchasing landlord, a
property with an established tenant
can be an aractive proposition.
Existing rental income, a proven
payment history and the potential
to avoid an initial void period can all
provide additional confidence when
compared with an empty property.
For the selling landlord, marketing
to experienced investors who
14
The Intermediary | September 2026
JON COOPER
is director of mortgages
at Aldermore
understand tenanted properties
can provide a straightforward
route to sale. There can also be a
positive outcome for tenants, who
are able to remain in their homes
without disruption.
Of course, a tenanted property isn’t
automatically the right acquisition.
Buyers still need to assess the quality
of the tenancy, the property’s
condition, compliance requirements,
and its fit within their wider
investment strategy.
This is where brokers can play an
important role, helping investors to
look beyond headline yields and assess
whether an opportunity genuinely
aligns with their long-term objectives.
the full deposit requirement, subject
to eligibility, affordability and
underwriting criteria.
The benefits can be significant
for both parties. The landlord gains
a trusted buyer and may avoid
the uncertainty, costs and rental
voids associated with a traditional
sale process.
Meanwhile, the tenant can access
a route to homeownership without
needing to save the entire deposit in
cash, which remains one of the biggest
barriers facing first-time buyers.
Tenant to buyer
The questions
The second, and oen overlooked,
option is for the tenant to purchase the
property themselves.
Aldermore’s research found that the
average tenancy now lasts 4.5 years,
while 61% of renters worry they may
never be able to buy a home.
For many long-term tenants,
purchasing the property they already
live in could provide a realistic and
practical route into homeownership if
their landlord is ready to sell.
One option that can help facilitate
this is a concessionary purchase.
Here, a landlord agrees to sell the
property below market value, with
the difference between the market
value and purchase price treated as
gied equity.
In some cases, this can form all
or part of the deposit required by
the buyer.
Several lenders offer products
designed for this type of transaction.
At Aldermore, for example, we can
consider lending up to 100% of the
discounted purchase price where
the landlord’s gied equity covers
Not every landlord sale will lead to
one of these outcomes. However, they
do highlight an important point: a
landlord’s decision to sell should not
automatically be viewed as the end of
the story.
Instead, it should trigger a broader
conversation. Could another landlord
acquire the property and retain it
within the PRS? Could the siing
tenant become a homeowner? Could
the sale form part of a wider portfolio
restructuring that creates new
borrowing needs elsewhere?
The brokers who ask these questions
early are oen the ones who uncover
opportunities that others miss.
At a time when much of the
conversation is focused on landlords
leaving the market, it’s worth
remembering that many properties
are simply changing hands, tenants
are becoming homeowners, and
new lending opportunities are
being created.
That’s an opportunity the
industry should be paying far more
aention to. ●
