Around one in four London landlords who put properties up for sale after the Renters’ Rights Act came into force have now re-let them, according to new analysis from Chestertons.
The estate agency said the reversal has emerged five months after the tenancy reforms took effect, with its lettings data showing a share of owners who tested a sale returning to the rental market as rental growth strengthened.
With London supply still tight and void risk low in much of the capital, holding a let property rather than selling into a patchy sales market now looks the better trade for many owners weighing yield against disposal costs.
London sales market shows signs of stabilising
Adam Jennings, head of residential at Chestertons, said there are encouraging signs that London’s sales market is stabilising. “Stronger rental growth may be encouraging some landlords to retain their properties, helping to bring supply and demand into better balance,” he said.
Chestertons said the economic backdrop has stayed resilient despite global uncertainty, while affordability in London has improved. That mix has reduced pressure for forced sales and allowed more owners to wait for better pricing rather than accept discounts.
The agency’s figures sit against a darker industry read last month, when TwentyCi reported more than 500 rental properties a day leaving the market since the Act, the fastest rate since 2016. Chestertons’ London sample points the other way, with a visible minority of would-be sellers stepping back.
This follows Landlord Knowledge’s report on Chestertons data showing 36 percent of London landlords raised asking rents after the bidding ban, which found owners repricing rather than quitting. The latest re-let figure suggests that repricing phase is now feeding through into hold decisions.
Rent reductions point to firmer pricing
Chestertons’ monthly tracking shows the share of London rental properties subject to reductions fell 36 percent year on year in May. Small rises of 6 percent and 1 percent followed in June and July, with no change in August, before a further 20 percent annual fall in September.
The pattern signals fewer landlords needing to cut to secure tenants as autumn demand held. Knight Frank’s separate read on prime outer London rents rising 3 percent fits the same picture of resilient pricing at the top end of the capital.
National data has been softer, with asking rents cooling in several regions, but London’s scale and tenant depth have kept re-let times short enough to support yields. The full Renters’ Rights Act collection on gov.uk sets out the current tenancy rules owners must apply when they re-let.
Regulation still shapes exit risk
The re-let trend does not remove compliance pressure. Owners who return to letting must use the new periodic tenancy structure, meet stricter rent-increase process rules and keep paperwork ready for council checks.
Sale costs also weigh on the decision. Capital gains tax, agent fees and the prospect of buying back later at higher prices narrow the gain from exit, while rental income has stayed firm enough to cover higher finance costs for many mortgaged owners.
Chestertons’ read covers London only, so it should not be taken as a national turn. Portfolio size, borrowing levels and property condition still split outcomes street by street.
What this means for landlords
- If you listed to sell in London: get a fresh rental valuation before you commit, as firmer rents may beat a discounted sale once tax and fees are counted.
- Watch for: rent-increase process errors and tenancy paperwork gaps when you re-let under the new rules, as councils can check compliance on complaint.
- Bottom line: one in four would-be sellers stepping back points to a London market finding balance, not a broad exit wave in the capital.
Editor’s view
London owners vote with cash flow. When rents hold and buyers haggle, keeping the asset rented is plain common sense. The test now is whether landlords re-letting under the new rules keep standards and files tight enough to stay out of trouble.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 13 October 2026
Sources: Chestertons, gov.uk
Related reading: Chestertons: 36% of London landlords raised asking rents after bids ban
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
