Approximately half of landlords were said to be considering reviewing rental values. This has contributed to a growing gap between landlord and tenant expectations: 82% of London agents reported their landlords expect rents to rise, against just 30% of tenants who anticipate increases.
Growth was strongest in South West and West London, where rents rose 1.6% and 1.4% respectively. Fulham, Chiswick and Wandsworth recorded the greatest upward pressure.
Prime central London was comparatively subdued at 0.4% overall, though properties within the scope of the Renters’ Rights Act outperformed: rents below the £100,000 per annum threshold rose 0.7% in Q2, against 0.1% for higher-value homes.
A similar dynamic was observed across outer prime London, where RRA-affected properties saw annual rental growth of 2.7% over the past year, compared with 1.7% for those above the threshold.
For landlords remaining in the sector, Savills noted that cumulative net rental growth since March 2020 has averaged 26% in outer prime London and 28% across regional markets. The firm forecast further growth of between 6% and 13% across prime markets over the next five years, supported by continued stock constraints.