The rise in landlords offloading their properties ahead of the anticipated Renters Rights Bill is contributing to an already “bloated” housing market, according to a leading industry expert.
Doug Shephard, director at property website Home.co.uk, has highlighted the growing issue. His organisation publishes a monthly snapshot of both the lettings and sales markets.
He revealed that the number of unsold properties across England and Wales has risen significantly over the past month. In fact, stock levels increased by an astonishing 27,732 listings—well above what’s typically expected for this time of year.
The total number of unsold homes now stands at 503,176. This marks a considerable increase and is the highest recorded figure for April since 2013, reflecting mounting pressure on the housing sales sector.
In his latest market commentary, Doug Shephard has warned of further challenges ahead for the housing sector. He points to the looming Renters’ Rights Bill, which is expected to pass into law in July and take effect by October. According to Shephard, the proposed legislation could significantly alter the landscape of the private rented sector (PRS), shifting the balance in favour of tenants rather than landlords.
Naturally, this anticipated change is creating unease among many landlords. Some are already leaving the sector, while others are seriously considering doing the same. This growing uncertainty is fuelling the trend of more properties being listed for sale, further increasing the pressure on an already overcrowded housing market.
In addition to the impact on sales stock, the rental market is also starting to show signs of strain. For the first time, annualised asking rent growth across the UK has dipped into negative territory, registering a -0.7% change. This decline has been largely driven by falling rents in regions such as London, the West Midlands and Yorkshire.
However, not all areas are following the same trend. The East Midlands is standing out for its strong performance, with rental prices continuing to rise. The region posted an impressive 9.3% annual growth in asking rents, making it one of the few bright spots in an otherwise softening rental market.
Recent data reveals that certain parts of London are experiencing a noticeable drop in asking rents, with the City of London and Lambeth standing out as the areas most affected. These figures reflect growing pressures in the rental market, particularly as broader economic and legislative factors continue to impact landlord behaviour.
The City of London has seen the steepest annual decline in rental prices, with asking rents falling by a significant 10.5%. This central borough, often associated with high demand due to its business and financial hub status, appears to be feeling the effects of a changing market dynamic.
Lambeth, another central borough, follows closely behind with a reported annual rental drop of 8.6%. Known for its diverse communities and convenient access to central London, Lambeth’s fall in rents may be linked to increasing supply as more properties are pushed onto the market.
These downward trends come at a time when the rental sector is under increasing strain, with many landlords opting to sell their properties ahead of anticipated legislative changes, such as the upcoming Renters’ Rights Bill. This shift is leading to a build-up of rental stock in some areas, resulting in downward pressure on prices.
While parts of the capital are struggling with falling rents, other boroughs are showing strong growth, suggesting a mixed picture for the London rental market. Westminster, for example, has experienced the highest annual increase in rents, with a rise of 13.5%, which is a substantial gain in contrast to the declines seen elsewhere.
Sutton and Bromley, both located in the outer parts of Greater London, have also posted positive figures. Rents in Sutton increased by 6.5%, while Bromley saw a 6.2% rise. These areas tend to attract families and professionals seeking more space and relatively lower costs compared to central London, which may be contributing to their growing appeal.
The contrast between boroughs like Westminster and Lambeth highlights the shifting demand patterns within London. It suggests that while some tenants are moving away from high-cost inner city areas, others continue to seek convenience and proximity to amenities, driving up demand in specific boroughs.
This divergence could also point to the changing preferences among renters post-pandemic, with remote work allowing more flexibility in terms of where people choose to live. Boroughs offering a balance of affordability, transport links and lifestyle benefits are likely to continue seeing stronger rental performance.
As the wider UK rental landscape evolves, these localised trends will be important indicators of how both landlords and tenants respond to new legislation, economic conditions, and shifts in demand. Borough-level data can help paint a clearer picture of which areas may be more resilient in the months ahead.
You can explore further insights and breakdowns by referring to the full report published by Home.co.uk, which details the latest figures for rental prices across London and beyond: Home Asking Price Index – April 2025.
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