Landlords are increasing asking rents to test the market, according to estate agent Chestertons. Their lettings report for July indicates a surge in tenant demand after the Renters' Rights Act came into force on 1 May 2026.
Rightmove’s rental trends tracker shows asking rents rose by 2.9% year-on-year in the second quarter, up from 1.4% in Q1. This marks the strongest rate of growth in two years.
Chestertons suggests the ban on landlords requiring rent in advance may have contributed to some landlords increasing asking rents to maximise monthly income. The market now shows signs of landlords becoming more confident in their initial pricing, with a 36% year-on-year drop in rent reductions in May.
In the sales market, prospective buyer registrations across Chestertons’ London network fell by 22% year-on-year in July. This decline, the steepest since November, occurred amid speculation over property taxation following a change in political leadership.
Adam Jennings, head of residential at Chestertons, stated that new Prime Minister Andy Burnham's swift response to Stamp Duty speculation should help restore buyer confidence by ruling out changes in the upcoming Budget.