News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the April / May 04 issue RPI news archive

Landlords leaving London market - April / May 2004

London landlords are realising their investments and withdrawing from the private rental market, Hamptons International has reported.

In March a fifth more than in the same month last year decided to sell their properties, said the agent.

'Many landlords are disheartened by rental yields, which in some cases will not even cover their mortgages. They are therefore opting for the better returns of the sales market', reported Sophie Raikes, of Hamptons' Clapham office.

'Over the last month we have noticed that stock levels are slowly dropping. This is likely to be a future trend with more investors opting to sell their properties for high returns', agreed Claire Gibb of the Knightsbridge office.

Generally rental housing stock levels were 41 per cent up on a year ago across the entire area covered Hamptons. Even so, 'the continuous rising levels we have been reporting have definitely slowed this year', reported the firm.

A 'competitive market' is also encouraging tenants to demand improvements such as new carpets or fittings as a condition of the tenancy. 'If the landlord wants to let the property he has to comply or the tenant will simply move on', said Hamptons property management director Jenny Goldberg.

This is another factor 'frightening' some landlords away from the lettings market, suggested the firm. 'Although usually these are not particularly demanding requests, some landlords are worried that the demands will not stop here. First time landlords especially are finding this an expense they had not anticipated and, rather than negotiating with the tenant, they are shying away and deciding not to proceed with the offer'.
 

other artilces from the April / May 2004 issue

• Standard response
• Agents and lenders are in bullish mood
• Landlords advised to check small print
• Landlord and agent pay for safety lapses
• Private rented sector 'stable'
• Manchester students look at becoming landlords
• Landlords leaving London market
• Local Housing Allowance to include landlord safeguards
• Landlord training
• Council threatens evictions over own delays
• In brief
• OFT calls for greater controls on estate agents
• Chancellor freezes stamp duty rates
• Pension possibilities