UK Rental Prices Expected to Surge by 18% Over Five Years

Savills forecasts significant rent hikes as supply dwindles and demand remains high.

Savills predicts UK rents will rise by 17.6% over the next five years, driven by a persistent supply-demand imbalance.
The average UK rent is anticipated to increase from £1,122 to £1,320 by 2029, with London seeing even higher rises.
New tax and regulatory changes, including increased stamp duty for second homes, are expected to deter new buy-to-let investors.
Landlords face pressure to upgrade properties to higher energy performance standards by 2030, potentially leading to more sales and reduced rental supply.
Despite a slight easing of affordability pressures in London, rents are projected to continue outpacing income growth, exacerbating financial strains for tenants.