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REVEALED: Properties with sitting tenants cost 15% less to buy

sitting tenants

Properties with a sitting tenant cost an average of 15% less than those without, and are a whopping 24% cheaper in Scotland, according to new figures.

Letting agent group Lomond says the average asking price for a property with a tenant in situ is £149,124 across Britain, making them a good BTL investment opportunity. Even in the East of England, where the saving is at its lowest, there is a 10% average discount.

The firm pins the discount on the fact that sitting tenants come with pre-agreed tenancy conditions and rents, and that home buyers looking to move in themselves and use it as their own home are wary of having to evict tenants.

But these properties can be hard to come by, with only 12,423 currently available across Britain, accounting for just 2% of total market listings. This figure falls to as low as 0.3% of total market listings in London and is as high as 6% of total stock in Yorkshire.

Sitting tenant

"A sitting tenant can provide a fantastic opportunity for buy-to-let investors particularly those entering the sector for the first time as this provides them with a ready-made investment and allows them to hit the ground running with an immediate rental income, says Lomond CEO Ed Phillips (pictured).

“That said, you still need to be careful to carry out the proper due diligence, particularly with regard to the tenant, to ensure that they are maintaining their rental payments and no other issues have been raised,” he warns.

“Opting for a tenanted property that has been managed by an agent can help in this respect, as they will not only have vetted the tenant to begin with but are also likely to have a more robust tenant history and have managed the property to a professional standard.”