Renters’ Rights Act is pushing UK rents higher: Savills
Key Points
- The Renters' Rights Act 2025 came into force on 1 May 2026 and has prompted more landlords to sell their rental properties, according to Savills.
- The resulting fall in rental supply is putting upward pressure on rents across the UK.
- Changes to rent collection under the Act knocked Savills' own UK lettings revenue in the first half of 2026.
- Savills' UK residential business saw revenue fall 9% to £80 million, with underlying profit down to £2.7 million from £4.2 million.
- The Act was the main reason group residential profits fell period-on-period, from £4.1 million to £2.1 million.
Landlords are selling up in greater numbers since the Renters’ Rights Act 2025 took effect, shrinking the supply of rental homes and driving rents upwards, estate agency Savills said on Thursday (13 August).
The Act came into force on 1 May 2026 and Savills said its introduction has led to an increase in landlords selling rental properties, and that the reduction in supply which followed has put upward pressure on rents. The firm said it is now advising landlords on their options.
The legislation also changed how rent is collected, and that change cost Savills money directly. The company recorded a one-off negative impact on its UK lettings revenue during the six months to 30 June 2026.
Across the group, residential transaction profits fell to £2.1 million from £4.1 million a year earlier, and Savills named the Act as the primary reason for the decline. Revenue in the division rose 3% to £131.8 million over the same period.
The UK accounts for 61% of Savills’ residential transaction revenue. British revenue fell 9% to £80 million in the half, with underlying profit dropping to £2.7 million from £4.2 million.
One part of the business gained from the shift. Savills reported strong growth in its UK auctions arm during the period, which it attributed to continued investment in that area.
