High-cost areas see biggest exodus of landlords – data
Summary
Hamptons data suggests landlord exits from the private rented sector remain most concentrated in London and the South of England, where higher prices, lower yields and mortgage costs are putting the greatest pressure on returns. The article also notes that the Renters Rights Act and a 12-month re-letting ban may be influencing disposal decisions, although tax changes and borrowing costs are presented as the longer-term drivers.
Why it matters
Surveyors involved in valuation, investment advice and rental market analysis should note the regional divergence in landlord behaviour, as it affects stock turnover, rental supply and pricing dynamics. The changing balance between sales and lettings may also influence assumptions around yield, void risk and investor appetite in higher-value markets.
Key points
- Landlord sales are most concentrated in London and the South of England.
- One in five homes listed for sale in London had been let within the previous five years.
- Higher property prices, lower yields and mortgage costs are cited as key pressures on investor returns.
- The Renters Rights Act and a 12-month re-letting ban may be making sales more complicated for landlords.
- Yields and rental growth have improved, which may be supporting some landlords to retain stock.
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