A bank says landlords have been exiting the London market since the Renters Rights Bill was first proposed in September 2024.
In fact the sharpest rise in former rental properties being listed for sale was back in Q1 2025.
In Q1 2025, some 49.9% of London homes listed for sale had been rental properties at some point in the previous three years.
This was up from 32.4% in Q1 2024.
Yet in Q2 and Q3 2025, only one in ten properties that were bought were subsequently re-let, which Investec Bank says may indicate a reduction in underlying rental stock.
While underlying stock levels are falling, there is more churn in rental listings.
Listing numbers in London remained elevated in Q1 2026 at 113,707, up 15.5% on Q1 2024 and 18.0% on Q1 2025, showing that more homes are continuing to circulate through the market even as the pool of available rental stock tightens.
London rents have remained broadly stable, says Investec.
Median rents were £2,200 in Q1 2024 and Q1 2025, and £2,197 in Q1 2026, which the bank believes may suggest affordability pressures are helping to keep rents in check even as supply remains constrained.
It adds that with demand continuing to outstrip supply, there may be increased interest from commercial and professional landlords.
In a more heavily regulated market, well-organised and well-funded providers may be better placed to respond because they typically have stronger processes, larger support teams and income spread across a portfolio rather than a single property.
A bank spokesperson comments: “London rental market data shows that stock levels are falling as many properties sold are not returning to the rental market.
“That should help support demand for landlords who remain invested in the sector.
“While the end of fixed-term contracts could make rental income feel less predictable at first glance, it may also increase the length of some tenancies as more occupants seek stability.
“We are seeing well-capitalised landlords and property entrepreneurs acquire additional units as some part-time landlords exit the market.
“Typically, these clients have the administrative support and established processes to manage increased regulation, while diversified portfolios help spread income risk across multiple units.”
This article is taken from Landlord Today