Average rental growth across England saw a moderation in the first quarter of 2026, a development that has surprised many in the property sector. This slowdown occurred despite widespread anticipation that landlords might implement significant rent increases in the period leading up to the new Renters' Rights Act, which officially came into effect on 1st May.
Contrary to earlier predictions of a substantial surge, analysis suggests that only around a quarter of landlords actively sought to front-load rent rises ahead of the new legislation. This indicates a more measured response from the private rental sector than some observers had expected, potentially easing some of the immediate pressures on tenants.
The Renters' Rights Act introduces significant changes to the private rental market, aiming to provide greater security and protection for tenants. Key provisions include the abolition of 'no-fault' evictions (Section 21 notices), making it more difficult for landlords to evict tenants without a specified reason. The legislation also aims to give tenants more power to challenge unreasonable rent increases and improve standards in rental properties.
The moderation in rental growth could offer some temporary relief to renters who have faced soaring costs in recent years. While the exact reasons for the broader slowdown are still being assessed, it suggests that market dynamics, alongside the impending legislative changes, may have played a role in shaping landlords' decisions regarding rent adjustments. This period of slower growth could be a brief respite before the full impact of the new Act is felt across the market.
For existing tenants, the new Act means enhanced security and greater recourse against arbitrary evictions or sudden, steep rent hikes. For landlords, the changes necessitate a shift in operational practices, with a greater emphasis on maintaining good relationships with tenants and ensuring properties meet required standards, given the reduced ease of ending tenancies. The long-term implications for investment in the private rental sector remain to be seen, with some landlord associations expressing concerns about potential disincentives for property owners.