Knight Frank predicts steeper rental growth due to government policy
Original Article Summary
Rents should rise by 4% in 2026 in prime central and outer London, Knight Frank has predicted. The forecasts were revised up from 3.5% due to government policy, as some landlords are selling ahead of the Renters’ Rights Bill. Other factors are recent speculation around plans to charge national insurance on rental income, as well […] The post Knight Frank predicts steeper rental growth due to government policy appeared first on PropertyWire.
PropMatch Curated Analysis
Knight Frank revised rental growth forecasts upward to 4% for prime London areas in 2026, citing landlord exits ahead of the Renters' Rights Bill and potential national insurance changes on rental income. Sales market expectations were downgraded to 1% price growth.
Investor Relevance
This signals potential rental yield improvements but also highlights regulatory risks driving landlord exits, requiring strategic review of portfolio positioning, timing of acquisitions/disposals, and rental pricing strategies.
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