More landlords stay as rental yields rise
Summary
The article reports that more landlords are choosing to retain rental portfolios rather than sell, as weaker sales values and stronger tenant demand improve the economics of holding property. It cites rising rents, reduced supply in the private rented sector, and higher interest rates as factors supporting higher rental yields.
Why it matters
This is relevant to surveyors because changing landlord behaviour can affect rental supply, investor demand, and asset values across the residential market. It also points to policy and tax changes that may influence valuation assumptions and market sentiment in the PRS.
Key points
- Landlords are increasingly holding portfolios instead of selling.
- Weak apartment values mean many owners would crystallise losses if they sold.
- Reduced rental supply is supporting stronger tenant demand and higher yields.
- Rightmove data cited in the article shows annual rent growth accelerating in London.
- Higher interest rates may encourage more would-be buyers to remain in the rental market.
Organisations:
Virelle Group, Rightmove, Bank of England
Regulations:
Renters’ Rights Act
Locations:
London, Manchester, Birmingham
Read the original article
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