Landlords and tenants poles apart on rent levels, says top agency
Summary
Savills reports a widening gap between landlord and tenant expectations on rent levels in prime rental markets, with many landlords seeking increases to offset higher regulation, tax and borrowing costs. The firm says the Renters Rights Act is now a major concern for landlords, alongside the abolition of Section 21, and that this is contributing to rent growth and some stock moving to the sales market.
Why it matters
Residential property surveyors involved in valuation, rental evidence and portfolio advice need to understand how regulatory change is influencing landlord behaviour and rental pricing. The article also signals potential shifts in supply, which may affect comparable evidence and market conditions in prime rental areas.
Key points
- Landlord and tenant expectations on rent levels are increasingly misaligned.
- Savills says the Renters Rights Act is a primary concern for many landlords.
- Abolition of Section 21 is cited as the most significant issue by agents.
- Prime rental values rose in Q2 2026 across regional markets, outer prime London and prime central London.
- Some landlords are testing the sales market, reducing rental stock.
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