news | 3 weeks ago | Andreea Dulgheru

Landlord uncertainty exacerbated by Renters Reform Bill and impending general election

The Renters Reform Bill currently going through Parliament and the imminent general election are causing more uncertainty and are potentially pushing more landlords to leave the PRS, warned Knight Frank.

According to the firm’s latest lettings data, there are early signs that more landlords are considering selling their properties several months ahead of a general election.

The number of new lettings instructions across London was 4% lower in April compared to the same month last year, Knight Frank data shows. 

Meanwhile, sales instructions were up by 16% over the same period.

The data also showed that rental value growth in prime London postcodes has narrowed to levels last seen in the summer of 2021.

Average rents in prime central London grew by 4.9% in the year to April, while the figure was 4.4% in prime outer London.

Despite the current uncertainty in the PRS, the overall lettings supply has grown in recent years, and new instructions were 11% higher over the first four months of this year than the same period two years ago.

As a result, tenants are increasingly pushing back against the sort of large rent increases either by re-negotiating or leaving at the end of the tenancy.

As rents continue to increase and sales values decline, gross average yields have risen — in prime central London, the gross average yield has reached 4.24%, which was the highest it has been since March 2007.

Post Comment