North West Has Largest Levels of Pre-Tenanted Buy-to-Let Investment Properties

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Which Regions Are Best for Finding a Tenant in Situ?

For buy-to-let investors, having a property already tenanted when bought is a great way to maximise returns. This is because the investor will earn rental income from the very first day of the investment.

Already having a tenant in situ is considered a boon for buy-to-let investors who won’t have to worry about finding a renter to occupy their property. Void periods can eat into an investor’s ROI, so avoiding an empty property is at the top of many property investors’ priorities.

New research from Benham and Reeves reveals the English regions where it is easiest and hardest to find this kind of investment opportunity when buying to let property, and they found that the North West region has the largest levels of pre-tenanted buy-to-let investment properties.

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Pre-Tenanted Properties Are Least Common in London

Benham and Reeves’ analysis of the current market data shows that just slightly over 11,000 properties are on offer with a tenant already in situ. This indicates that while this situation might be a bonus for investors, it is a rare find in the real estate investment properties market at the moment.

As mentioned, they found that the North West was the region with the most pre-tenanted properties on the market. The properties found in this area made up 21% of the national total.

The South East came in second, accounting for 16%, followed by Yorkshire and the Humber (14%), the East Midlands (13%), East of England (11%), and West Midlands (11%). The South West and the North East were each found to make up about 5% of the total, meaning investors in these areas may find it harder to snag a pre-tenanted property.

However, the region with the least opportunities to find a tenant in situ was London. The capital’s stock accounted for just 2% of all pre-tenanted properties in England.

The availability of tenanted properties is another factor that can be considered when searching for the best buy-to-let areas.

Further Reading: Find out how to generate a passive income or who can buy property in the UK with our RWinvest guides.

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What Advantages Does a Pre-Tenanted Property Have for Investors?

Acquiring a tenanted property allows the investor to receive rental income once the deal is done. It also eliminates the initial void period most investors will experience when searching for a tenant. Overall, it can save investors time and money that may otherwise be spent on finding a renter to live in their property.

Director of Benham and Reeves, Marc von Grundherr, commented: “Void periods can be a significant thorn in the side for buy-to-let investors and will seriously reduce the earning potential of their investment if they drag on for too long. So a tenanted property can make for a very appealing investment opportunity as it allows a rental income to be generated as soon as the deal has been done.”

Find out more about the UK’s best buy-to-let locations with our dedicated area guides covering topics such as investment property available in Battersea and buy-to-let Royal Leamington Spa.

Author

Jessica Ferris

Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.