Dramatic rise in number of rental properties being sold in London
The number of homes for sale in the Capital that were previously rented, has reached a ten-year high, says TwentyCI
Over a fifth of all newly-listed homes for sale within Inner London were previously rental properties, new year-on-year data from TwentyCi reveals.
Ten-year high
That is a ten-year high and compares with 15.6% in July 2023 and 12.9% in July 2019 – the last ‘normal’ year before the pandemic.
In comparison the number of previously rental properties listed for sale across the UK was just 9%, highlighting how the trend is highly concentrated in the capital.
Landlords selling now obviously comes at a very difficult point for the private rented sector (PRS).”
Colin Bradshaw, Chief Executive Officer of TwentyCi said: “Aside from mortgage increases, landlords have growing fears around a possible rise in Capital Gains Tax and compliance demands for energy efficiencies. Overall, the rental sector has become much more expensive and unpredictable for landlords over the last decade.
“Landlords selling now obviously comes at a very difficult point for the private rented sector (PRS). Available properties to rent are at their lowest since TwentyCi has been recording data in the last 15 years, now at 276,000 in July 2024 for the whole of the UK, compared with 369,000 in July 2019 – a reduction of more than 25%.”
The disproportionately high sale rate in London may well be because with the Renter’s Rights Bill looming, many landlords are concerned about what effect it will have on yields that are already significantly below the UK average.
Of the 64 cities in a recent Zoopla survey, London came 62nd and was the worst-performing region by some distance.
And many of those who have decided to sell are likely to be acting now in order to avoid the possibility of higher rates for Capital Gains Tax.
