Knight Frank claims the pushback against Labour’s Renters Rights Bill is growing.
Not only is the Conservative party mobilising some players within the industry to oppose the Bill in the Lords, but now the market is showing a major fall in lettings properties in parts of the country.
The number of new lettings properties coming to the market in London and the Home Counties in the first quarter of the year was 10% lower than the same period last year, Knight Frank data shows. The same figure was down by 15% on 2023.
“More landlords are leaving the sector, and we can feel on the ground that their numbers are reducing” says Gary Hall, head of lettings at Knight Frank. “Demand is strong, we have had another record year, and it is positive for the landlords who are staying in the market as there will be upwards pressure on rental yields. However, from a tenant’s perspective, the unintended consequence of rising rents would not be welcome.”
The ratio of new tenants to new lettings properties on the market was five in the first quarter of this year. That compares to 4.6 in the previous two years, showing how demand is growing relative to supply.
The Bill is currently at the committee stage in the House of Lords and subject to amendment if the House of Commons agrees, which may involve some Parliamentary ping pong between the two houses.
Meanwhile Knight Frank says average rents in prime central London rose by 0.6% in the three months to March, which was the largest quarterly increase since November 2023. It took the annual change to 0.8%, the biggest increase since October last year. In prime outer London the rise was 0.1% over the last three months, which was the highest increase since November last year.
The annual figure in March was 1.2%, which was up from 1% in January and February this year.
