More than 20% of short-term lets advertised in London were previously long-term rentals, according to research by property data platform Propalt.
It compared 2,800 short-term lets listings from across the capital that appeared on three of the top short-term rental websites, then investigated each property’s background, its portfolio owner and rental history.
The platform found 586 had been operated by a letting agent before becoming a short-term rental property, with some 30% of these owned by 1,000-unit or more portfolio (rather than individual) landlords.
Co-founder Kieran Slinger (pictured) says there is a clear trend towards short-term lets in the capital and this is likely to be indicative of other high footfall tourist areas.
“This will accelerate the shortage of stock we currently see,” he explains.
“We know that accidental landlords are leaving the market right now and it appears that portfolio landlords are looking to other models to maximise their returns in this market.”
Head of data YuJie Gong adds that while it’s not surprising that landlords are looking to garner returns for their investments, Propalt is monitoring the level and voracity of switching.
“We can see the anniversary dates of rentals within portfolios and there is a pattern of long-term rentals finishing and new adverts appearing for the same properties within 60 days,” says Gong.
“We would expect to see more properties and property owners following this path unless they can see a route to similar returns in the long-term lettings market. It’s certainly something agents should be thinking about in 2024.”