Rents edge upwards in prime markets across the country
Summary
Savills reports that prime rental values rose in Q2 2026 across regional markets, outer prime London and, more modestly, prime central London. The firm links the increase to landlords passing on higher regulatory, tax and borrowing costs, alongside reduced stock as some landlords consider selling following the Renters Rights Act.
Why it matters
For residential property surveyors, the article signals continued rental market pressure in prime segments and highlights how regulatory change is influencing landlord behaviour and pricing. It also points to shifting tenant expectations and stock availability, which can affect valuation assumptions and market commentary.
Key points
- Prime regional rents rose 1.3% in Q2 2026; outer prime London rose 1.2%; prime central London rose 0.4%.
- Savills says landlords are adjusting rents to offset higher regulation, taxation and borrowing costs.
- The Renters Rights Act is cited as a key concern, especially the abolition of Section 21.
- Some landlords are reportedly reviewing rental values or testing the sales market, reducing rental stock.
- Demand remains strongest in best-in-class properties, with tenants becoming more price-sensitive.
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