London landlords return properties to rental market

Approximately one in four London landlords who initially listed their properties for sale following the implementation of the Renters’ Rights Act have since returned them to the rental market. Data from estate agency Chestertons indicates that five months after the tenancy reforms took effect, rising rental yields have incentivized property owners to reverse their decisions to exit the buy-to-let sector.

Adam Jennings, Head of Residential at Chestertons, noted that stronger rental growth may be helping to stabilize the sales market and bring supply and demand into a better balance. This trend contrasts with reports from TwentyCi, which suggested that over 500 properties were exiting the market daily since the Act's implementation, marking the highest rate since 2016.

Monthly data from Chestertons shows a decline in properties subject to rent reductions, with a 36% year-on-year decrease in May and a further 20% annual decline in September. The shift suggests that potential rental income may be offsetting concerns regarding the increased regulatory requirements faced by landlords.