Knight Frank has blamed a significant reduction in rental property listings in one of its key London territories on the government’s assault on landlords.
The company says the market in Richmond shrunk by 12% during August compared to the same time last year.
This is because more landlords are selling their properties as they feel the full force of the Conservative’s recent tax-take on buy-to-let residential landlords.
“A number of owners have also listed their property for sale and to let at the same time in case pricing expectations are not met in either market,” says Debbie Pinkham, the company’s Head of Lettings in the area (left).
“Supply and demand in the Richmond lettings market is changing, with a number of landlords opting to sell due to recent tax changes.
“This has reduced the number of available rental properties which is underpinning rental values.
“That said, there are still several ‘accidental’ landlords in the market who have attempted to sell but were unable to achieve their asking price and will sell when market conditions become more favourable.”
But a lack of stock in the area isn’t driving up average asking rents. Instead they have dipped from just over £2,000 a month in 2015 to £1,735 today, Knight Frank reveals.
This it suggests is because corporate relocation packages for overseas workers coming to the UK have been slashed and landlords have had to ‘price accordingly’.