One in four London landlords who put their properties up for sale have returned them to the rental market, according to Chestertons.
The agency says stronger rental growth may be persuading some landlords to retain their properties rather than sell, five months after the main tenancy reforms under the Renters’ Rights Act came into force.
Chestertons has also recorded a 14% increase in tenant portal enquiries and a 3% rise in move-ins.
The findings come as separate Rightmove data shows London tenant demand was 7% higher year-on-year in September while the number of available rental properties was 10% lower.
LANDLORDS RETURN
Chestertons says its figures suggest some landlords who had tested the sales market are reconsidering their options.
London rents have also returned to stronger growth following a significant slowdown from the increases recorded earlier in the decade.
Rightmove figures cited by Chestertons show annual rental growth in the capital increased from 0.8% in Q4 2025 to 1.4% in Q1 2026 and 2.9% in Q2, taking average advertised rents to £2,791 a month.
Katinka Hill (main picture, inset right), Head of Lettings at Chestertons, says increased enquiries are not necessarily translating directly into new tenancies.
She says: “Although demand has increased, tenants no longer have a fixed deadline to move at the end of their tenancy. They are taking more time to weigh up their options, and enquiries do not always translate into new tenancies.
“However, our 3% increase in move-ins shows that the market remains reasonably active.”
RENTAL PRICING
Chestertons says landlords also appear to be adjusting to the new rules around rent increases.
The number of properties requiring rent reductions was 20% lower year-on-year in September, following a 36% annual fall in May.
Conditions vary considerably across the capital, with Chestertons recording rental growth of 6.6% in South West London and an almost 20% increase in viewings across North and East London.
Hill says: “Well-presented properties offered at a competitive rent will continue to attract good tenants. Keeping homes in good repair and looking after tenants will also encourage them to stay longer.”
SALES STABILISE
The agency also sees early signs of stabilisation in London’s sales market.
Adam Jennings (main picture, inset leftO, Head of Residential at Chestertons, says: “Stronger rental growth may be encouraging some landlords to retain their properties, helping to bring supply and demand into better balance.”
He adds that improving affordability is also providing some support to the capital’s sales market.
