Labour's Renters' Rights Act, which came into force in May with the aim of strengthening tenants' protections by ending "no fault" evictions, capping rent increases and banning fixed-term tenancies, appears to be having the opposite effect in London's rental market. Tenants and estate agents say landlords are now listing properties at the highest price they believe someone will pay, since they can no longer accept offers above the asking price to head off bidding wars, while a growing number of landlords are selling up altogether, shrinking the pool of available homes.

Average rent in London hit a record £2,791 a month in the second quarter of the year, up 2 per cent on the previous quarter, according to Rightmove, with rents outside the capital also rising 1.9 per cent to £1,397. SpareRoom recorded a 3.2 per cent fall in advertised rooms over the year to June, and a survey of more than 1,000 landlords found almost half were considering quitting the rental market because of the new rules. Renters including Laura Meyer, 28, and Lydia Holt, 25, described viewing dozens of properties, having offers rejected, and finding budgets they once considered reasonable no longer stretch far enough.