London landlords re-let properties after initial sale plans
Approximately one in four London landlords who listed properties for sale following the implementation of the Renters’ Rights Act have since returned them to the rental market, according to data from Chestertons.
The estate agency’s analysis indicates that five months after the tenancy reforms came into force, a notable proportion of property owners in the capital have reversed their decision to exit the buy-to-let sector, with rising rental yields cited as a key factor.
Market stabilisation
Adam Jennings, Head of Residential at Chestertons, said: “There are encouraging signs that London’s sales market is stabilising. Stronger rental growth may be encouraging some landlords to retain their properties, helping to bring supply and demand into better balance.”
The trend follows recent shifts in rental pricing across UK regions, with Chestertons’ monthly data showing that properties subject to rent reductions fell by 36% year-on-year in May.
Small increases of 6% and 1% were recorded in June and July respectively, with no change in August. September saw a further annual decline of 20% in properties with reduced rents.
Sector exodus concerns
The figures contrast with recent industry reports suggesting landlords were leaving the rental sector in significant numbers. Last month, TwentyCi reported that more than 500 properties were exiting the market daily since the Act’s implementation, representing the highest rate since 2016.
Jennings added that the economic backdrop remains resilient despite global uncertainty, while affordability in London has improved. The data suggests that rental income potential may be offsetting concerns about increased regulatory requirements facing landlords.
The reversal in landlord sentiment could have implications for both London’s sales and rental markets, potentially easing supply constraints that have characterised the capital’s property sector in recent months.
