London’s landlords reverse decision to sell-up

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

Five months after the tenancy reforms under the Act were implemented, many property owners in the Capital have clearly changed their minds, according to Chestertons.

The agency’s analysis claims that these landlords who put their properties on the market have returned to lettings, with higher rents proving to be an incentive.

This could help bring supply and demand into balance in London’s sales market, it claims.

Resilient backdrop

Adam Jennings, Head of Residential at Chestertons (pictured), says: “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 economic backdrop remains resilient despite global uncertainty, while affordability in London has improved.”

Rent reductions

Chestertons’ monthly figures suggest the number of properties subject to rent reductions fell by 36% year on year in May.

Small increases of 6% and 1% followed in June and July respectively, with no change in August. September brought a further annual decline of 20%.

Last month, TwentyCi revealed landlords were quitting the rental sector “in droves” since the Act, claiming more than 500 properties were disappearing from the market every day, which was the most since 2016.