Prime rents higher as Renters Rights Act hits top-end market
Summary
Savills reports that prime rents have continued to rise, with stronger annual growth in Prime Central London and outer London, while regional prime markets have slowed. The article says landlord caution around the Renters Rights Act, higher taxation and mortgage costs is constraining supply, particularly in lower rental bands below the £100,000 threshold.
Why it matters
For residential property surveyors, the article highlights shifting rental values, yields and investor sentiment in prime and regional markets, which can influence valuation assumptions and market commentary. It also points to regulatory change affecting landlord behaviour and rental supply, relevant to advising on investment and rental evidence.
Key points
- Prime Central London rents rose 1.9% year-on-year; outer London rents rose 2.9%.
- Savills says the Renters Rights Act is the main concern for landlords, ahead of taxation and mortgage costs.
- Rental growth is strongest below the £100,000 annual rent threshold, where landlords face greater regulatory exposure.
- Prime central London yields are at their strongest level since 2009.
- Regional prime rental growth has slowed, though some cities and smaller properties remain resilient.
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