Landlords are significantly raising their asking rents after the introduction of Labour’s Renters’ Rights Act, Chestertons has reported. The company suggests this is due to the legislation’s ban on letting agents and landlords encouraging competitive bidding for properties.
Many landlords are now setting higher asking rents, anticipating that tenants will offer less, but at a price the landlords originally aimed to achieve. This trend is beginning to be reflected in portal listings data.
The latest Rightmove Rental Trends Tracker indicates that asking rents rose by 2.9% year-on-year during the second quarter of 2026. This marks an increase from 1.4% in the previous three months and represents the strongest growth rate in two years. London’s rental growth, at 2.3%, also surpassed the rest of Britain for the first time since the period between July and September 2023.
Chestertons noted that this trend emerged in June and continued into July, albeit at lower levels as landlords gained confidence in their pricing. This is particularly relevant given reported lower supply levels and increased demand. Katinka Hill, head of lettings at Chestertons, stated that while activity eased in July, applicant registrations in the first 10 days of August were up 18% year-on-year, consistent with expected seasonal summer increases.