Landlord confidence slides as Renters’ Rights Act nears

Landlords are entering 2026 with reduced confidence following the November Budget and the impending Renters’ Rights Act, research reveals.

According to a survey by Savills, the Act is prompting many landlords in the prime sector to reassess their outlook as regulatory pressure builds.

Jessica Tomlinson, a research analyst with Savills, said: “A fundamental reset of the rental market is underway, reshaping the experience of both landlords and tenants.

“While those operating within the sector do still have time to prepare for regulatory changes, a shift in sentiment is already being felt.”

Landlords not prepared

Savills says that shift has narrowed the divide between landlords and tenants on pricing expectations.

Most agents active in prime markets report that renters expected rents to fall over the past three months.

However, just 50% of them believed that landlords in prime central London were also bracing for declines.

In outer prime London, one in five agents said landlords there anticipated falling rents.

Wandsworth prime rents

Despite waning confidence, rental performance in some locations remains resilient with south west London emerging as the strongest prime rental market in 2025.

Neighbourhoods in Wandsworth, Putney and Barnes outperformed other high value areas.

Savills’ prime lettings index recorded annual growth of 6.8% in Wandsworth, 6.3% in Putney and 5.4% in Barnes.

Quarterly figures painted a more mixed picture as prime central London slipped by -0.1% in Q4 2025.

Outer prime districts were flat as prime regional markets saw a sharper quarterly fall of -1.1%.

However, annual growth across all three segments remained positive at up to 2.4%.

Lifestyle premium

Ms Tomlinson said: “While growth across the wider prime rental market moderated in 2025, south west London neighbourhoods continued to outperform, driven by sustained demand from domestic needs-based moves.

“The best preforming prime neighbourhoods last year all offered strong transport links, good schools and access to green space, and command a clear lifestyle premium.”

She added: “With some rental stock lost to the sales market last year, the imbalance between demand and supply has kept rental values competitive.”