Renters in the UK can expect their bills to soar by almost a fifth over the next five years as demand continues to outstrip supply, says estate agent Savills.

Guy Whittaker, associate director at Savills, says: ‘The increase in the stamp duty land tax surcharge for second homes will likely dampen demand from new buy-to-let investors, and it will prevent some existing landlords from expanding their portfolios.

Supply: Latest figures show the number of available rental listings per lettings branch was down 16% in September compared to 2018-19 levels But rents in the capital grew by just 1.5 per cent in the 12 months to September 2024, compared to 4 per cent across the nation, as affordability was stretched.

Mr Whittaker says slow growth in London has led to a slight easing of affordability pressures and Savills forecasts 2.5 per cent growth for the capital’s rents next year.