The UK's top-end rentals have seen another surge in prices as landlords struggle to offset rising costs. Prime regional areas recorded a 1.3% increase in rents during the second quarter of 2026, with some regions experiencing even higher growth rates, according to real estate firm Savills.
Markets such as the South West and West London led the charge, with the former seeing a 1.6% rise and the latter a 1.4% increase. Neighbourhoods like Fulham, Chiswick, and Wandsworth in outer prime London were particularly affected by the upward pressure on rents.
The introduction of the Renters' Rights Act (RRA) appears to be playing a significant role in these price hikes. Savills found that properties with rents below £100,000 per annum threshold saw higher growth rates than those above this threshold, suggesting landlords are reassessing values for RRA-affected properties.
Research analyst Jessica Tomlinson noted that landlords are adapting to the changing regulatory landscape alongside grappling with increased mortgage costs and a heavier tax burden. This perfect storm is prompting many to review rental values across their portfolios to offset rising operating expenses, with some considering selling properties to reduce available stock – further supporting rental growth.
A survey of Savills agents revealed that the RRA is a major concern for landlords, with 48% of London agents and 71% outside the capital citing it as their biggest worry. Agents reported that approximately half of landlords are reviewing rental values, while 82% of London agents believe rents will continue to rise.
Looking ahead, constrained housing supply is expected to remain a key driver of rental growth. Savills forecasts prime markets will see increases between 6% and 13% over the next five years – underscoring the ongoing pressures within the UK rental sector.