Told you so! First consequences of Renters’ Rights Act hit rental market
Summary
The article argues that the Renters’ Rights Act is already affecting the rental market, with Foxtons reporting lower revenue and Savills saying landlords in prime London are raising rents to offset higher costs and administration. It also suggests the legislation is contributing to earlier tenant move-outs, an expectation gap between landlords and tenants, and some landlords considering selling rather than continuing to let.
Why it matters
Residential property surveyors involved in lettings, valuation and landlord advice may see knock-on effects from changing rental demand, higher rents and shifts in landlord behaviour. The article also highlights potential market volatility in the student and prime rental sectors, which can influence comparable evidence and investment decisions.
Key points
- Foxtons reportedly lost around £3 million in revenue linked to tenants using shorter notice periods.
- Savills says prime London landlords are increasing rents to cover higher costs and admin.
- The article claims the Act is widening an expectation gap between landlords and tenants.
- Some landlords are said to be testing the sales market rather than continuing to let.
- Section 21 abolition is presented as increasing perceived financial risk for landlords.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
