The numbers of landlords selling their properties ahead of the Renters Rights Bill are adding to a sales market that’s already “bloated” says a leading commentator.
Doug Shephard is director at website Home.co.uk, which publishes a monthly market snapshot for lettings and sales.
He says the unsold sales stock count for England and Wales increased by a massive 27,732 properties during the last month – far above seasonal expectations. The current total of 503,176 is relatively very high and is the largest April figure since 2013.
He goes on to say, in a commentary alongside his market report: “A further dark cloud menacing the market is the impending Renters’ Rights Bill which is likely to become law in July and put into effect from October onwards. The various provisions within this legislation look set to reshape the private rented sector (PRS), favouring the rights of tenants over those of landlords.
“Understandably, such a fundamental shake-up of the PRS is causing concern and anxiety among landlords, many of whom are considering or actively quitting the sector. This negative sentiment is only adding to the numbers of properties being placed on an already bloated market.”
UK annualised asking rent growth slipped into the negative this month (-0.7%), with the fall driver by the negative performance of London, the West Midlands and Yorkshire.
Meanwhile, the East Midlands continues to show exceptional performance, with rental growth of 9.3%.
The City of London followed by Lambeth indicate the largest declines in asking rents of all London boroughs, with annualised rental falls of 10.5% and 8.6% respectively.
Meanwhile, the best performers are Westminster and the tiny rental markets in the boroughs of Sutton and Bromley, with rents increasing by 13.5%, 6.5% and 6.2% respectively.
You can see the full Home report here: https://www.home.co.uk/asking_price_index/HAPIndex_APR25.pdf
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