Rising rental yields convince landlords to stay
Summary
The article reports that more landlords are choosing to retain portfolios rather than sell, driven by weak sales values, stronger tenant demand and rising rental yields. It also cites the impact of the Renters’ Rights Act, expected tax changes from April 2027, and higher interest rates as factors shaping landlord behaviour and the private rented sector.
Why it matters
For residential property surveyors, these market shifts can affect investor demand, rental valuations and the pace of sales in the PRS. The combination of supply shortages and changing regulation may also influence instructions, asset strategy and local market evidence.
Key points
- Landlords are increasingly holding onto portfolios instead of selling.
- Weak apartment values mean many sellers would crystallise a loss.
- Reduced supply is supporting stronger tenant demand and higher rental yields.
- Rightmove data cited in the article shows annual rent growth accelerating to 3.2% in London.
- Higher interest rates may keep more would-be buyers in the rental market.
Organisations:
Virelle Group, Rightmove, Bank of England
Regulations:
Renters’ Rights Act
Locations:
London, Manchester, Birmingham, UK
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