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London landlords more likely to leave the rental market

A high proportion of landlords in London are considering selling up and taking their business elsewhere, analysis from SpareRoom shows.

Some 41.5% of landlords in London said they plan to leave the rental market, compared to 34.1% outside of the city.

Just 2% of London landlords plan to increase their portfolio, while 90% say they lack confidence in the private rented sector.

Matt Hutchinson, director of SpareRoom, said: “Not all landlords are big businesses. Almost half (45%) only have one rental property, some of whom have their life savings tied up in their rental property.

“If landlords feel like they have no choice but to leave the market, renters will suffer. Lack of supply is already inflating rents, but if landlords follow through on their intentions, the problem will become even more severe.

“It’s evident the current rental market isn’t working for anyone – tenants or landlords. The sector needs change that protects and incentivises supply. If the government wants stability and affordability then change has to work for everyone.

“While common-sense rent reforms will offer tenants greater protection, there is neither support nor incentives for landlords, and nothing in place to protect the market from volatility, which is what we’ll see more of if landlords don’t see the sector as an opportunity worth investing in.”

Of those who lack confidence in the market, the top three concerns are the Renters’ Rights Bill (88%), the end of Section 21 (75%) and reduced profitability (70%).

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