Though a property chain typically involves buyers and sellers, you may sometimes find renters located within. Renting can be of two forms; those who have sold their house and are renting until they find a house they want; those who have bought a house and are renting out their old one. This post will go through both scenarios and what this means for the renter or landlord.

Scenario 1: Selling your house and then renting another until you find a house that you want to purchase

Selling your home chain free has some real benefits. As the sale of your house is not determined on whether you can find or buy a new home first (a common issue in the chain), your house may be a more attractive option to those who need a house fast, or are in a position whereby they’ve sold their house and are actively looking to purchase. As buying your house would prevent them from getting in a long chain and means less chance of delays with paperwork, you may even receive a higher offer. Once you have sold your house, and you find a home that you, yourself want to buy, you have an advantage over other buyers who may still be stuck in various chains themselves. According to the Financial Times, chain-free buyers can also receive a 1.3% greater discount on average than buyers still stuck in chains. Many sellers are willing to sacrifice some money for the sake of certainty and speed.

Renting during this time (between selling and buying a new home) can be more economical. The Financial Times states that renting can be as much as 20% cheaper than buying a home, as the latter involves paying a deposit, mortgage fees, stamp duty and estate agent fees among other charges. Finding and renting a home is also a much quicker process than outright purchasing a house, and when you do find a home you want to buy, being in rented accommodation makes this process easier and faster. Also, when renting, it is your landlord that must pay for repairs and renovations, rather than yourself if a buyer requests these after a Home Survey. Other benefits of renting first include rental payments being unlikely to change and no risk of loss if property prices decrease.

Renting will however mean having to move twice, which can be costly, depending on how far away your two most recent locations are from one another, as well as how many belongings you have. Still, it puts you in a much better position for buying your next home and potentially saves you time and money in the long run.


Scenario 2: Buying the house you want and then renting out your old one

Though this scenario may initially appear expensive and a lot of hassle, the money you gain from acquiring renters can help to cover your new home’s mortgage repayments and the costs associated with owning two homes. It does however mean you become a landlord and you must inform your mortgage lender. The Money Advice Service provides detailed information concerning the financial responsibilities a landlord should consider.

Your responsibilities as a landlord include:

  • Keep your house free from safety hazards
  • Ensure electrical and gas appliances are maintained
  • Find out whether potential tenants have the right to rent property (in England)

For a full list of your responsibilities, see

Advantages of renting out a house include tax deductions on expenses including contents insurance, replacing damaged furniture and accounting processes as well as the provision of a continuous income. Disadvantages include being responsible for all emergencies, repairs and costs such as property taxes and insurance.

Becoming a landlord is not recommended unless it is a long-term option.

Whether you’re thinking of renting until you find your dream home or becoming a landlord to cover costs, ensure you think carefully about both decisions, researching all relevant and related information. You want to be in the best possible position and your choice could determine this.

Back to all articles
Share this article
13 December 2017 | Blog

Can I sell my house to my son for £1?

Over the past few years the government has introduced a variety of Help to Buy schemes to help…

19 September 2017 | Blog

Am I still a first-time buyer if I inherit a property?

With new schemes such as the Help to Buy ISA and easier access to mortgages with smaller deposits,…

4 August 2017 | Blog

How to keep a Property Chain moving

A property chain can often be a fickle but necessary part of selling and buying a home. Regardless…


Get your free property valuation offer

Like you, every property is unique, so we’ll just need a few details before we can make you an offer

Or call us free today on 0808 231 8088

Alternatively you can request a callback