Savills is warning that when it comes to rent levels in prime locations across the country, landlord and tenant expectations are far apart.
The agency’s latest snapshot of the prime rental market says: “Agents … reported that around half of landlords were considering reviewing rental values.
“This disruption is reflected in a growing misalignment between landlord and tenant expectations on price.
“The vast majority (82%) of agents in London said the landlords they represent expect rental values to increase, compared with just 30% of tenants who expect rents to rise.”
In the same survey, when asked about the landlords on their books, almost half of Savills agents in London (48%) and seven in ten agents outside the capital (71%) identified the Renters Rights Act as landlords’ primary concern, with the abolition of Section 21 cited most frequently as the most significant issue.
Savills says landlords are looking to hike rents further to cover higher costs imposed by the Renters Rights Act (RRA).
It says: “Rental values across prime markets grew over the past three months, with landlords increasingly seeking to offset higher costs associated with regulation, taxation and borrowing.
“According to Savills’ latest prime rental indices, values increased by 1.3% across the prime regional markets and by 1.2% in outer prime London during Q2 2026, while prime central London recorded a more modest rise of 0.4%, signalling a return to slow but steady accumulation of rental gains.
“Landlords are continuing to adapt to a changing regulatory environment following the introduction of the Renters Rights Act, while also contending with higher mortgage costs and an increased tax burden. As a result, many are reassessing rental values across their portfolios to help offset rising operating costs,
“At the same time, the implementation of the RRA has further prompted some landlords to test the sales market, further reducing the amount of stock available.
“All this combined has supported growth in rents, despite economic headwinds. However increases are strongest in markets most impacted by the RRA.”
