Rents pushed higher as reform law slashes supply
Summary
Knight Frank reports that falling lettings supply in London is contributing to higher rents, particularly in prime outer London where average rents rose 3% over the year to September. The article links this trend to landlords pricing in greater risk under the new Renters Rights Act rules, alongside a continued imbalance between tenant demand and available stock.
Why it matters
Surveyors involved in residential valuation, investment and lettings need to understand how regulatory change is affecting rental pricing and market liquidity. The supply-demand imbalance in London can influence rent assessments, investment appraisals and advice to landlords and tenants.
Key points
- Average rents in prime outer London rose 3% year on year to September.
- New lettings listings in prime outer London fell 6.4% over the year to August.
- Knight Frank says landlords are increasing asking rents to reflect higher risks under the Renters Rights Act rules.
- Prime central London rents also increased, with the fastest six-month growth since January 2024.
- Tenant demand remains strong relative to supply in both prime outer and prime central London.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
