Neighbourhoods in South West London recorded the strongest growth in prime rental values last year, analysis by Savills reveals.

Average rents for prime properties in Wandsworth jumped by 6.8%, while in Putney they increased by 6.3% and in Barnes they rose by 5.4%.

This compared to annual growth of just 0.9% for rents in prime central London, 2.4% for prime outer London and 0.9% for prime regional locations around the UK.

Outside of London, the strongest prime market performers in 2025 were outer commuter belt locations, including Winchester (3.9%), Farnham (3.8%) and Henley (2.8%).

Savills research analyst Jessica Tomlinson says: “While growth across the wider prime rental market moderated in 2025, South West London neighbourhoods continued to outperform, driven by sustained demand from domestic needs-based moves.

“The best-performing prime neighbourhoods last year all offered strong transport links, good schools and access to green space, and command a clear lifestyle premium.

“With some rental stock lost to the sales market last year, the imbalance between demand and supply has kept rental values competitive.”

According to Savills’ survey of landlords, the majority are feeling less confident as a result of the November Budget and Renters Rights Act, which will become law from May.

Tomlinson adds: “A fundamental reset of the rental market is underway, reshaping the experience of both landlords and tenants.

“While those operating within the sector do still have time to prepare for regulatory changes, a shift in sentiment is already being felt.

“A number of landlords may seek to reassess their position once the Act becomes reality.

“But, others will stand their ground and seek to get up to speed on how these changes will cause the lettings market to evolve.”