Fears of a landlord exodus following the introduction of new renter-friendly legislation may be overblown, according to fresh data.
The predicted rush of rental properties being put up for sale hasn’t materialised, with the number of properties on the sales market down by nearly a fifth between June and September this year, according to research by property firm Lomond.
In September 2024, 10,041 properties with tenants still in place were listed on the British housing market. This is down by 19.2 per cent from the 12,423 properties listed in June 2024.
Landlords and estate agents have been vocal about the risk of the Renters Rights Bill, in addition to a likely increase in capital gains tax, leading to an exodus of landlords from the market and a subsequent squeeze in rental properties available.
Director of London estate agents Benham and Reeves, Marc von Grundherr, went as far to call the “ill-devised legislative overhaul” a “potential rental market doomsday”.
Siân Hemming-Metcalfe, a director at property software company Inventory Base, said that the tenant-first focus of the bill “risks destabilising” the rental market and could cause it to shrink.
But Ed Phillips, chief executive of Lomond, said that while much has been made of the supposed landlord exodus following the bill, which will give greater rights to tenants, “we’re yet to see any evidence of this”.
Phillips added: “The real test will be the impending Autumn Budget at the end of this month, as we could yet see more changes that impact the financial returns of Buy-to-Let investors, with Capital Gains Tax looking the most likely shake up on the cards.”