The Renters' Rights Act has had an immediate impact on the way landlords manage rents, with a 23% reduction in the number of sitting tenants facing rent increases in May compared to the same month last year. Analysis from estate agency Hamptons reveals that just 77% of existing tenants saw their rents rise in May, down from 99% in the same month in 2025.
While fewer tenants are being hit with rent hikes, those who are facing much larger adjustments. The average annual rent increase for existing tenants in May was 5.4%, a figure consistent with April's average and slightly below the 5.5% recorded in May last year. In contrast, newly agreed lets saw an average annual growth of just 1.1%. Experts suggest that these bigger increases often reflect landlords trying to 'catch up' to current market rates, particularly if rents have remained static for some time.
Aneisha Beveridge, Head of Research at Hamptons, believes the Act is making landlords think twice about increasing rents when tenancies come up for renewal. She notes that this could mean tenants see rent rises less often but with greater magnitude when they do occur. In Scotland, where periodic tenancies have been in place since 2017, average rent increases among tenants whose rent changed in May were a significant 7.7%.
Across Great Britain, the average price for a newly agreed let increased by just 1.1% over the year to reach £1,382. This is a slight decrease from the 1.2% annual rise observed in April. Regionally, the South East became the first area outside London to record an average rent of £1,500, marking a 2% year-on-year increase. London's average rents stood at £2,294 last month, up significantly from June 2012 when average rents were just £1,500.
The Renters' Rights Act is designed to provide greater security for tenants by moving away from fixed-term tenancies towards a system of periodic tenancies. While the immediate effect appears to be a pause in frequent rent adjustments, the long-term implications for both landlords and tenants will continue to unfold as the market adapts to the new regulatory environment.
Source: Hamptons