Insights - RRA

July’s 6.5% Rent Spike: The New Landlord Gamble

Under the new RRA framework, traditional rent review clauses are history. Landlords are now legally restricted to just one review a year, meaning they only get one shot every 52 weeks to adjust for inflation and rising costs. The result? Landlords are aggressively “front-loading” their asking rents right at the start of new tenancies. But in a cooling economy, asking tenants to swallow a 6.5% premium is a huge roll of the dice. Do it wrong, and a single vacant month will instantly wipe out your profits.