An agency says the renters Rights Act is already influencing landlord behaviour, especially when a tenant vacates a property.

Winkworth says it is positive that few landlords are exiting the market, but it seems the Act has been felt sharply during its first full quarter in force. 

The agency’s Notting Hill team reports that many landlords now request a sales valuation whenever a tenant serves notice, reflecting the fact that a new tenancy cannot be ended for the purposes of a sale within its first 12 months.

More generally across Prime Central London, for every buyer registering with Winkworth’s prime offices, more than three prospective tenants registered.

This is up from two in the previous quarter.

The agency also notes that many of the third quarter’s tenants are buyers in all but name, choosing to rent while they monitor the sales market, possibly for price reductions. 

They have been joined by families based outside London who are renting a city base for children at university rather than purchasing one. 

Across Prime Central London, lets above £3,000 per week reached a record high over the past year.

Meanwhile, owners who are unable to sell, or simply prefer not to for the time being, are increasingly turning to the lettings market, with requests for lettings valuations rising by around a quarter compared to a year earlier. 

Below the £100,000 annual rent threshold, short lets have lost much of their premium now that tenants can give two months’ notice. 

Above that threshold, where the new rules do not apply, the proportion of new lets agreed through Winkworth has nearly doubled since May. 

Meanwhile, rents continued to rise in areas where high-quality stock remained in short supply, with Pimlico in particular confirming record rental values.