New data released today reveals that, following the introduction of the Renters' Rights Act, a significant 23% fewer existing tenants in the UK have seen their rent increase in May compared to the same period last year. The findings, based on analysis by Hamptons lettings agency using Connells Group brands' data, suggest landlords are initially adapting to the new regulatory landscape, which typically restricts rent increases to once a year.
While this trend indicates that fewer tenants will experience rent rises in 2026 – approximately 31% compared to 40% recorded over the preceding 12 months – evidence also suggests that when these adjustments do occur, they may be more substantial. The average rent increase for May was 5.4%, a figure mirroring the experience in Scotland where landlords have operated under similar restrictions for longer.
Aneisha Beveridge, head of research at Hamptons, pointed out that this initial reduction in rent increases is one of the first tangible impacts of the new Act. She noted that slower rental growth plays a part, but also suggested that landlords are initially less inclined to raise rents compared to the previous system. This could lead to tenants facing fewer, but potentially larger adjustments, as rents align with prevailing market rates.
The implications for the UK's rental market are substantial. With landlords making fewer but potentially more significant rent changes, existing tenants may enjoy more stable periods between increases, yet face a higher hike when their rent is reviewed. For first-time buyers and those considering renting, this dynamic will likely influence affordability and budgeting decisions as the rental market continues to adjust under new legislation.