London landlords are leaving the market in their droves, according to ARLA Propertymark’s December Private Rented Sector (PRS) report.
The figures compare to a national average of four and represents double the number of landlords selling up in the North East, East Midlands, West Midlands, East of England and the South West, where agents reported three sales per branch.
“Over the last few years, landlords across the country have been pushed out of the market by increasing costs and legislation, and new investors have been deterred from entering,” David Cox, chief executive at ARLA Propertymark, explained.
He said the issue of landlords selling up has ‘particularly intensified’ in the capital, which may be a result of landlords starting to receive their first tax bill incorporating the increase in taxes from the mortgage interest relief changes, which came into force last tax year.
Cox added: “If this trend continues, coupled with the Mayor of London, Sadiq Khan’s, recent pledge to introduce rent controls, it will only serve to make the situation worse for London’s renters as more landlords are forced to sell up.”
“As the supply of rental accommodation falls further, tenants will face more competition for properties, which will push up rents on good-quality, well-managed properties, and leave the vulnerable and low-income people which rent controls are designed to help, in the hands of rogue and criminal operators.”