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14/7/25 8:13 pm
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Portfolio landlords snapping up rental properties from small landlords has sustained buy-to-let sales in 2025.
Savills reports that this is expected to ramp up now the Renters’ Rights Act has become law, supported by lower rates and higher rents, although it warns that tighter regulation and taxation will limit the sector’s growth.
Weaker sentiment and concerns about the economy and tax environment have left the housing market subdued so far this year. However, the firm predicts that average house prices are set to increase by £80,000 over the next five years and expects continued rental shortages will contribute to driving up first-time buyer sales.
“Housing is technically more accessible now than at any point in the last three years, thanks to lower mortgage rates, lower real house prices and looser mortgage regulation,” according to Emily Williams, director research at Savills. “But none of this matters unless buyers feel confident enough to commit – and weaker sentiment is holding back transactions.”
She says this has been less true for first-time buyers, whose purchasing power has improved the most. “Looking ahead, the Renters’ Rights Act will provide younger households with more security in that sector but will do little to increase the availability of homes. As a result, Savills expects first-time buyer numbers to remain robust over the next couple of years.”
More than half (56%) of UK renters are ‘flat huggers’ who want to move but are forced to stay put, according to new data from flat share site SpareRoom. Flat sharers aged 40+ are more likely to be flat hugging with 61% staying in their current rental despite wanting to move compared with 52% of under 40s.
The top reason flat sharers aren’t moving is that available housing is out of their budget (73%).
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