Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
London Landlords Reverse Sell-Up Decision as Rent Growth Bites
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, according to Chestertons. Five months after the tenancy reforms under the Act were implemented, the agency says many owners in the capital have changed their minds.
Chestertons' analysis claims these landlords have returned to lettings, with higher rents proving an incentive. It says this could help bring supply and demand into balance in London's sales market.
Encouraging signs
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 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, the most since 2016.
Source: The Negotiator