Rents ought to rise by 4% in 2026 in prime central and outer London, Knight Frank has predicted.
The forecasts have been revised up from 3.5% because of authorities coverage, as some landlords are promoting forward of the Renters’ Rights Invoice.
Different components are latest hypothesis round plans to cost nationwide insurance coverage on rental earnings, in addition to stricter inexperienced laws.
When it comes to the gross sales market, Knight Frank downgraded its expectations, saying that costs ought to solely enhance by 1% this 12 months.
The actual property consultancy stated: “A mixture of excessive provide and faltering confidence means we now count on slower UK home worth progress this 12 months and in 2026.
“Against this, we expect rental worth progress might be marginally larger in 2026 as authorities initiatives produce unintended penalties – once more.”
The variety of new potential consumers within the UK was 8% decrease within the 12 months to August in comparison with the earlier 12 months.
The low level for the gross sales market this 12 months was April, when nil fee bands for stamp responsibility elevated and US President Donald Trump introduced a sequence of commerce tariffs, sparking short-term instability on monetary market.
