The average time it takes for rental homes to go from sale to contract has increased by more than two weeks compared to last year, to reach 155 days in April.
Figures from Connells estate agency show that, last year, the average time to buy was 18 days faster than 137 days.
Rental homes take an average of 57 days longer than freehold homes from offer to offer, the study shows.
The average freehold home took 98 days to reach the contract exchange stage in April, which was 16 days higher than last year when the average was 82 days.
Connells says delays in the sales process for rental properties increase transaction times because of their impact on other properties in the chain, Connells said.
The long-term trend shows that overall average buying times are now nearly four weeks longer than they were in April 2019.
The number of late-stage falls has also increased, it said.
Connells research director Aneisha Beveridge says: “For the first time on record, it is now taking more than 100 days, on average, for a sale to progress from ‘agreed’ to ‘exchange of contracts’.
“That highlights how much the transaction process has been dragged out, especially since the pandemic.
“More checks, longer chains and stricter legal and compliance requirements all add time, with hire purchase standing out as a major contributor to delays.
“The net result is that buyers and sellers are left in the dark for a long time once a deal has been agreed, and we are increasingly seeing more and more transactions falling apart later in the process.
“Since sales take longer to process, buyers are more exposed to changes in mortgage rates and home prices if conditions change during that time.
“That increased uncertainty creates more of a line.
“This has nothing to do with the housing market itself – a delayed or failed move could affect consumer confidence, labor mobility and, ultimately, broader economic growth.”
National Leasehold Campaign founder Katie Kendrick says the delay reveals a “fundamentally broken” system.
He says: “The rental owners have been warning the government for many years that the rental system will stop the buying and selling system.
“That’s exactly what we’re seeing happening now.”
Kendrick says rental properties are becoming increasingly difficult to sell, as transactions stall, fall through or take longer to complete.
He says this is not a single issue but a systemic failure built into the lease model.
“Every day, rental sales are collapsing because of an antiquated, exploitative and completely unfit for purpose system.
“The sale of rental properties that takes place within the NLC is a sad thing that happens every day.
“This is not anecdotal – it’s happening at a high rate, and the data now supports what rental owners have been saying for years.
“This is an effective lease ban.”
Kendrick adds: “The campaign is calling on the government to take urgent action to address the root causes of these problems and provide a clear and deliverable timetable for reform.
“Without strong intervention, delays will continue to increase, many transactions will fall through and landlords will remain trapped in areas they cannot sell.”
