Landlords who haven’t sold up ‘benefit from strong demand’

Landlords who opted not to sell their rental properties this year are benefiting from stronger demand and potentially improved yields, according to an agency celebrating its first anniversary.

Virelle Group, a boutique agency specialising in new build rentals, property management and sales in London, Manchester and Birmingham, has identified the trend.

We are now seeing an increasing number of landlords holding on to their portfolio.”

Emily Robison, Director at Virelle Group (pictured left), says: “Despite a number of new legislations and tax implications, we are now seeing an increasing number of landlords holding on to their portfolio rather than selling.

“There are two key reasons for this. Firstly, the sales market has remained sluggish and apartment values have fallen significantly which would see the majority of landlords make a loss if they sold up.

“Secondly, the Renters’ Rights Act and looming tax changes on rental incomes from April 2027 convinced a considerable number of private landlords to sell their properties this year.”

Supply shortage

“This has resulted in a supply shortage of homes for rent, creating an opportunity for remaining landlords who now benefit from strong tenant demand and the potential of higher rental yields.”

Virelle Group suggests that a property that previously returned 4-5% annually, could now generate 7-9%.

Robison adds: “In light of the Bank of England’s recent decision to increase interest rates to 4%, we expect more aspiring homebuyers to put their property search on hold and continue to rent, resulting in further growth for the UK rental sector and opportunities for landlords.”

Around one in four of London’s landlords who put their properties up for sale since the Act came into force, have now re-let them, figures from Chestertons suggested last month.

Pictured left to right: Emily Robison, Yuki Wong, James Cameron, Lucina Lau and Chloe Koh, all of Virelle group.