Prime rents higher as Renters Rights Act hits market
Summary
Savills reports that prime rents have continued to rise in London and selected regional markets, with Prime Central London showing its strongest quarterly rental growth in two years. The article links tighter supply and landlord caution to the Renters Rights Act, alongside tax and mortgage cost pressures, while noting that affordability is limiting the pace of further increases.
Why it matters
Residential property surveyors involved in valuation, rental evidence and investment advice should note the changing rental dynamics and yield improvement in prime markets. The Renters Rights Act may also influence landlord behaviour, stock levels and comparables used in assessments.
Key points
- Prime Central London rents are 1.9% higher year-on-year; outer London rents are up 2.9%.
- Savills says the Renters Rights Act is the main concern for landlords, ahead of tax and mortgage costs.
- Rental growth is strongest below the £100,000 annual rent threshold, where landlords are more exposed to regulatory change.
- Reduced landlord supply is supporting rents, but affordability is capping further increases.
- Prime Central London yields are at their strongest level since 2009.
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