The availability of investment properties to rent in London has fallen 46 per cent below the national average, according to new monthly figures from the Association of Residential Letting Agents (ARLA).
ARLA has found that landlords are being increasingly priced out of the capital. This has led to increasing competition in the buy to let sector for rental properties, and a lack of availability of suitable properties.
It was found that in January, letting agents situated in London were managing an average of 99 properties. This is in comparison to the national average of 184. London was also the lowest region for supply during December, but it stood at 130 properties per letting agent then. This was in comparison to a national average of 200.
The buy to let market in London suffers from a unique mix of issues given the capital’s extremely high prices. This is coupled with growing legislation and regulation in the buy to let sector, which adds to making landlords’ jobs more complex.
ARLA chief executive, David Cox, spoke out about the research findings: ‘The rental market in London should be thriving as the capital is a hub for business and culture and attracts a huge influx of new residents every year. But the prospect of being a landlord is becoming less tenable, as potential buy to let investors are deterred by increased taxes and ever more complicated legislation and higher property prices in London are making it becoming more and more difficult for landlords to make ends meet.’
He argued that the increasingly dense field of regulation surrounding the buy to let sector is having an adverse effect on government policies. He continued: ‘Government policies designed to help renters now seem to be having the opposite effect, as landlords are moving away from using professional agents. This puts tenants at risk of falling into the hands of rogue landlords, or novice ones who don’t have any experience in the sector.’