ABSTRACT
The existence of a ‘value gap’ between the tenanted investment value and the vacant possession value of privately rented residential property has resulted in the transfer of the majority of the sector into owner occupation since the early 1920s. It is significant, however, that the purpose-built flat sector remained almost untouched by this process until the mid 1960s. It can be argued that landlords who fail to perceive and react to changing market conditions may, like other entrepreneurs, lose market share, experience declining profitability, fall prey to other more aggressive competitors or even go out of business altogether. The main trend in ownership rationale has been the long-term withdrawal from investment landlordism and the more recent rise of residential property trading or trading landlordism. By 1977 the dominant policy orientation of the largest 25 owners was totally the reverse of that in 1966. Only three owners still had a predominantly investment oriented portfolio.
