Estate agency Virelle Group, operating in London, Manchester, and Birmingham, reports that landlords are abandoning plans to sell their properties. This shift is attributed to declining apartment values and strengthening tenant demand, which are making rental investments more appealing.
Emily Robison, director at Virelle Group, stated that a sluggish sales market means many landlords would face a loss if they sold now. The departure of other landlords, partly due to the Renters’ Rights Act and upcoming tax changes in April 2027, has also led to a shortage of rental homes. This creates opportunities for remaining landlords, who benefit from strong tenant demand and potentially higher rental yields.
Research from Chestertons last month indicated that approximately one in four London landlords who listed properties for sale after the Renters’ Rights Act came into force subsequently returned them to the rental market. Rental supply remains under pressure, with annual asking rent growth at 2.4% outside London and 3.2% in the capital, according to Rightmove figures cited by Virelle.
Available rental listings in London have decreased by 9% year-on-year, and newly advertised rental properties are down 7%. Over the same period, tenant demand has risen by 6%. The Bank of England's decision to raise Bank Rate to 4% could also delay purchases for aspiring homebuyers, potentially keeping more households in rented accommodation.