Dramatic rise in London landlords selling up

Dramatic rise in London landlords selling up

0:01 AM, 28th August 2024, About a month ago 3

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The number of properties for sale in London that were previously rented has surged, according to research from TwentyCi.

The analytics firm found that in July, 22% of all the 8,006 newly listed homes for sale in Inner London had been available to rent at some point in the last decade – a 10-year high.

This figure compares with 15.6% in July 2023 and 12.9% in July 2019, the last ‘normal’ year before the pandemic.

The firm says the number of previously rented homes listed for sale across the UK was just 9% in July 2024 – highlighting how the trend is highly concentrated in the capital.

‘Possible rise in Capital Gains Tax’

TwentyCi’s chief executive, Colin Bradshaw, said: “Aside from mortgage increases, landlords have growing fears around a possible rise in Capital Gains Tax and compliance demands for energy efficiencies.

“Overall, the rental sector has become much more expensive and unpredictable for landlords over the last decade.”

He adds: “Landlords selling now obviously comes at a very difficult point for the private rented sector (PRS).

“Available properties to rent are at their lowest since TwentyCi has been recording data in the last 15 years, now at 276,000 in July 2024 for the whole of the UK, compared with 369,000 in July 2019 – a reduction of more than 25%.”

Research also reveals that the average rent across the UK is £1,869 per month, while in Inner London, it is £2,399.

Third fewer homes to rent

Property site Zoopla says that, in spite of a recent easing of the strains on supply, the average letting agent still has a third fewer homes to rent compared with the pre-pandemic average.

This shortage of available property has driven higher rents.

The platform says growth in London rents soared by 17% in 2022, with UK rents rising 11.9%.

This has now down to 5.7% in the 12 months to June, the lowest UK growth rate for nearly three years.


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GlanACC

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17:15 PM, 28th August 2024, About a month ago

Well that should make the anti landlord sector very happy. Just as in Derby many properties that were BTL in the PRS have now been sold to first time buyers (especially the 1 and 2 bed properties) . I suppose Generation Rent will moan that there are not enough affordable rented properties now, well you can't have it both ways.

Cider Drinker

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23:33 PM, 28th August 2024, About a month ago

We must find another use for our properties. Something that removes them from housing people permanently.

If I increase rents to market rate on some of them, I could others empty. Or maybe I could let my grandchildren have a whole house to themselves at really low rents.

Rookie Landlord

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9:56 AM, 1st September 2024, About a month ago

This article highlights another issue this country has.....Londoncentricity!...I'm not sure if that's an actual word though....if it isn't you saw it here first.

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