Savills says landlords and tenants in prime rental markets are sharply split on where rents go next, with 82% of agents in London reporting that landlords expect rental values to rise compared with just 30% who said tenants expect the same.
The latest Savills snapshot also said prime regional rents rose 1.3% in the second quarter of 2026, while outer prime London rents climbed 1.2% and prime central London rents rose 0.4%. The firm said higher regulation, tax and borrowing costs were pushing landlords to review pricing across their portfolios.
For landlords and investors, the figures matter because they suggest rent-setting tension is still building even after the first wave of post-Renters’ Rights Act repricing. That may support rents in some prime markets, but it also raises the risk of longer voids or tougher negotiations where tenants have stopped accepting every increase on offer.
Prime rents are still rising, but tenants are pushing back
Savills said almost half of its agents in London and 71% outside the capital identified the Renters’ Rights Act as landlords’ main concern, with the end of section 21 cited most often. The firm also said some landlords were testing the sales market, which was helping keep rental stock tighter in the areas most affected by the reforms.
The figures point to a market where cost pressure is still feeding through into rent reviews, but not to one where tenants simply agree without resistance. That gap in expectations is important. A landlord may feel justified in pushing for more rent, yet the tenant’s own view of affordability may be moving in the opposite direction.
This follows Residential Landlord’s recent coverage of record asking rents and tighter supply, which showed price pressure has not gone away. The latest Savills figures add a more uncomfortable point: pricing power may still be there in parts of the market, but agreement between landlords and tenants is getting harder.
It also sits alongside Residential Landlord’s reporting on London affordability shifts, suggesting headline rent growth does not tell the full story if expectations on both sides are starting to diverge.
Landlords may need sharper pricing discipline
For investors, the practical takeaway is that higher costs do not automatically justify every rent rise in the eyes of the market. Prime landlords may still achieve stronger rents where stock is scarce and the property is well presented, but wide pricing gaps can easily turn into slower deals if tenants think the number has overshot.
That should make pricing discipline more important, not less. In a post-Renters’ Rights Act market, landlords still need to protect margins, but they also need to avoid pushing tenants into a standoff that leaves a property empty or a negotiation stuck.
Landlord Today’s report on the latest Savills rental snapshot outlines the figures and landlord concerns.
Opinion
Landlords are right to feel their costs have gone up. But the market does not have to agree with every attempt to pass them on. When landlord and tenant expectations split this far, the danger is not only political pressure over rents – it is mispricing at property level.
