The respected Home website, which produces a monthly monitor of the lettings and sales markets, says some landlords – especially in London – are selling at a loss having ‘held on too long.’

Home’s director, Doug Shephard, writes in his site’s latest report that just as the private rental sector requires more investment, so the policies of the new Labour government are triggering dis-investment.

He cites recent data from Rightmove and the Royal Institution of Chartered Surveyors showing landlords quitting the sector, effectively creating rent rises because of stock shortages. 

Shephard writes:  “Of course, the landlord exodus will logically start with the least profitable properties i.e. where yields are lowest and red tape is greatest. That is exactly what we are witnessing … London landlords want out most of all. 

“Cornered in a Sadiq Khan ULEZ and threatened by Keir Starmer’s ruthless tax plans, they’ve had enough. Just a glance at London’s poor price growth over the last ten years (16.5%) compared to inflation over the same period which, according to the RPI, is 51.4%, suggests that they’ve perhaps hung on too long. Many realise this and want to cash out, even if it means taking a substantial loss.”

The latest Home report indicates that the annualised national growth figure for asking rents has slowed again to 0.8%, dragged down by London’s poor performance. The year-on-year decline in Greater London rents is now 1.1%. The boroughs of Haringey and Bexley indicate the worst declines in asking rents, with annualised falls of 10.7% and 8.9% respectively. 

Wales continues to lead the regional growth table, followed by the South West, indicating rises of 14.6% and 9.7% respectively year-on-year. 

You can see the full report here: https://www.home.co.uk/asking_price_index/HAPIndex_SEP24.pdf