Rental market prepares for tax threat and reforms fall-out (opinion)
Summary
The article argues that the rental market, particularly in prime London, is being reshaped by the Renter’s Rights Act, higher landlord costs and uncertainty around future tax and energy-efficiency policy. It reports rising rents, reduced supply and weaker new listings, with some landlords and investors pausing or exiting the market amid regulatory and fiscal concerns.
Why it matters
Residential property surveyors need to understand how legislative change, tax policy and EPC requirements can affect rental demand, supply and pricing in different submarkets. These shifts can influence valuation assumptions, investment advice and landlord decision-making, especially in higher-value London markets.
Key points
- Prime outer London rents rose 3.3% year on year to June, while prime central London rents rose 0.9%.
- The Renter’s Rights Act is cited as increasing landlord risk and contributing to some owners selling up.
- Rightmove data shows new rental listings in prime central and outer London were 15% below the five-year average in the first half of the year.
- The article highlights possible future pressure from an EPC C requirement for rental properties and rumoured tax changes.
- Demand remains resilient, but some wealthy tenants and investors are reportedly pausing decisions amid political and fiscal uncertainty.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
