An estate agency specialising in new build rentals, property management and sales says more landlords are holding on to their portfolios rather than selling as it marks its first anniversary. Virelle Group, which operates across London, Manchester and Birmingham, says remaining landlords may benefit from higher rental yields.
“With the lettings market undergoing quite a few changes, it has been an incredibly busy first year for our offices,” said Emily Robison, director at Virelle Group (pictured on the left). “Despite a number of new legislations and tax implications, we are now seeing an increasing number of landlords holding on to their portfolio rather than selling.
“There are two key reasons for this,” she explained. “Firstly, the sales market has remained sluggish and apartment values have fallen significantly, which would see the majority of landlords make a loss if they sold up. Secondly, the Renters’ Rights Act and looming tax changes on rental incomes from April 2027 convinced a considerable number of private landlords to sell their properties this year. This has resulted in a supply shortage of homes for rent, creating an opportunity for remaining landlords who now benefit from strong tenant demand and the potential of higher rental yields.”
The firm suggests rental yields on a property that previously returned 4-5% annually could now reach 7-9%. The agency cites Rightmove’s latest Rental Trends Tracker, which recorded annual rent growth of 2.4% outside London and an acceleration to 3.2% in the capital.
Rightmove’s research also points to a tighter London market, with available rental listings down 9%, newly listed rental homes down 7% and renter demand up 6% on a year ago.
“In light of the Bank of England’s recent decision to increase interest rates to 4%, we expect more aspiring homebuyers to put their property search on hold and continue to rent, resulting in further growth for the UK rental sector and opportunities for landlords,” she added.
