Supply shortage a result of Renters Rights Act – data
Summary
Knight Frank data indicates that prime London lettings remain constrained by a persistent supply shortage, with new listings below long-run averages and rents continuing to rise. The article links weaker landlord supply and reduced lettings activity to recent tax and legislative changes, including the Renters Rights Act, while noting stronger activity in higher-value and super-prime segments.
Why it matters
Surveyors involved in valuation, investment advice or rental market analysis should note the continuing mismatch between demand and supply in prime London, as it affects rental growth assumptions and asset performance. The regulatory backdrop may also influence landlord behaviour, tenancy turnover and the availability of comparable evidence.
Key points
- Prime London new listings were 10% below the five-year average in the three months to August.
- Tenancies agreed in London were 8% lower year on year, matching the fall in new supply.
- The article attributes reduced landlord supply partly to tax and legislative changes, including the Renters Rights Act.
- Rents rose 3% in prime outer London and 1.2% in prime central London over the year to August.
- Super-prime lettings remain active, supported by weaker demand in the high-value sales market.
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