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Key Takeaways:
- More landlords are thinking of selling their property after the Renters’ Rights Act and the Autumn Budget 2025 came into effect.
- Tax increases and new compliance requirements do not diminish the strong rental yield opportunities in London.
- Timing is crucial to get a reasonable selling price for properties in the UK.
- Short-term or mid-term letting offers a viable solution to avoid the effects of RRA while keeping the property earning before it sells.
- Efficient property management plays a huge role in maximising rental returns and occupancy rates while keeping the property market-ready.
Should I Sell or Rent My Property in London: That is the Question
After all the changes in the rental property market, landlords are asking themselves: Should I sell or rent my property in London?
The Renters’ Rights Act and the Autumn Budget 2025 have created uncertainty among property owners in the Private Rented Sector (PRS).
The Renters’ Rights Act brings an end to Section 21, introduces new compliance obligations, strengthens council enforcement powers, mandates registration, and imposes additional administrative responsibilities.
The Autumn Budget, on the other hand, brings additional financial pressure on rental income tax (+2% starting in 2027), a High-Value Council Tax Surcharge for properties valued at £2m+, and frozen thresholds until 2031.
Both prompted most landlords to reassess their long-term strategies to minimise the effects of the back-to-back policies on their rental income. It has even made others question if maintaining their rental properties would still be worth it, or if it’s a sign to arrange their exit.
Did you know:
31% landlords plan to reduce their property portfolios over the next 2 years, while 16% want to sell completely. – Netrent.co.uk
While selling might seem appealing, don’t be too rash with your decision. Although the regulations and costs make rental properties less appealing, selling a flat may not be the perfect solution to cut losses. At least, not yet.
It’s important to study the market and ensure that selling won’t make you compromise and end up with a considerable discount on the property sale.
Is It a Good Time to Sell Your London Property?
To answer this question, you need to look at what has been happening before the Renters’ Rights Act and Autumn Budget came into play.
In April of this year, the Stamp Duty Land Tax threshold changed. It made buying properties more expensive. This, among other reasons, may have caused buyer demand to fall by 12%. And when buyer demand falls, that means sellers have to compete harder to sell their properties. This could lead them to lower their house prices just to get a buyer.
According to reports, the annual house price growth is down by -0.4% over the last 3 months. If landlords start selling now because of the new regulations and tax obligations, this will increase housing supply in the market. This, together with the decrease in buyer demand, may cause housing prices to fall further.
If this goes on, you might have a hard time getting the price you want for your property.
On the other side of the market, the rental market situation is holding steady, with the number of rental homes available increasing by 9% in October 2025 and tenant demand dropping by 14%. Despite this, rental rates reached new heights, averaging £1,385 per month. In London, the average monthly rental rate is £2,736, a 1.6% increase from 12 months ago.
What does this mean? Although tenant demand may be dropping, the rental market is showing resilience.
While landlords can still decide to sell their property, it’s still important to take advantage of the growing rental income. Remember, the RRA and the Autumn Budget have not yet taken effect. Instead of unloading properties in a market that might force sellers to accept a discounted price, why not keep renting while waiting for the market to be more favourable?
Renting Is Better Than Selling Right Now
When strict regulations and higher taxes make you ask, “Should I sell or rent my property in London?” stop to consider how fast you can sell your property. Although Zoopla reports that the average time to sell properties is 38 days, some properties still take up to 6 months to sell.
The time to sell refers to the period between the day the property is listed until the signing of the contract between the buyer and seller.
Don’t waste your property by leaving it empty while you wait for it to sell. Through City Relay’s flexible letting strategies, you can continue earning while keeping the property ready to sell once a buyer makes the right offer.
There are several reasons why this is a smart move.
- Well-maintained properties. Shortlets and midlets are fully furnished properties that can be rented for a couple of days to a few months. It also keeps the property staged for buyer viewings. With short-term letting, buyers will see a well-maintained unit, leaving no reason to ask for discounts.
- No forced-sale discounts. Rental yields are high for shortlets and midlets. When managed properly and if high occupancy rates are maintained, losses can be minimised. If the property continues to earn, there’s no rush to accept below-market price offers.
- Ensures flexibility. Shortlets and midlets won’t tie properties to long leases. If the right buyer comes with a good offer, it’s easier to pull the property from rental listings and proceed with the sale.
If landlords partner with companies like City Relay, they can benefit from property management expertise that can protect both rental property and yield. Working with a professional also ensures:
- A well-maintained property
- Dynamic pricing strategies
- Full compliance with regulations
- In-house housekeeping services
- 24/7 guest support
- Regular advisory and updates
With property managers handling daily property operations, landlords can focus on their portfolios and the sale of their properties.
FAQs: Selling vs Renting Your Property in London
Is 2026 a good time to sell my property in London?
A good time to sell is to get the right selling price. It’s okay to keep your property listed, but be reminded that properties that have been listed for a long time do not always attract buyer confidence.
Choose the right season to list your property and rent it out while waiting. Spring and Autumn are generally the two best times to sell a property, while Summer and Winter are the worst.
Will the Renters’ Rights Act make renting out a property harder?
If you’re planning to let your property long-term, then yes, your property will be affected by the RRA. However, if you prefer short-term and mid-term letting, it won’t affect your property.
Let City Relay guide you through flexible letting so your property can minimise the effects of both RRA and the 90-day limit on your rental income.
Can renting generate more income than selling?
This depends on how long you plan to rent out your property. Sometimes, renting can help you earn up to £10,000 in 2 months while waiting to sell.
Work with City Relay so we can help you optimise revenue. We’ll keep occupancy rates high so you can enjoy higher rental yields while you wait for your property to sell.
Should You Sell or Rent Your Property?
Timing is the key to getting a reasonable price when you sell your property. Although the RRA and Autumn Budget are making it harder for London landlords, there are merits to renting your property first before selling.
When you rent using short- or mid-term letting strategies, you can generate a high income, avoid discounted prices, and stay compliant. Your property will continue to work for you even while you wait for the right buyer to come along with a reasonable offer.
Explore the possibilities flexible letting can offer you. City Relay is here to help you achieve maximum rental revenue while keeping your options to sell open.
Our lettings team can help determine your property’s income potential. Get a free rental estimate now.
