Fewer landlords impose rent rises on existing tenants in first month of Renters' Rights Act

If this trend were to continue across the rest of the year, according to the author of the analysis by Hamptons, 31% of sitting tenants would see their rent rise, down from 40% over the 12 months to May 2025 and 50% in early 2024.

Hamptons said this drop in rent increases is one of the first effects of the Renters’ Rights Act to be seen on the market – just six weeks after the law was introduced.

Following the introduction of the act on 1 May, most tenancies have changed from having a fixed term to becoming periodic or rolling. Previously, there were no restrictions on the number of rent increases a landlord could impose on their tenants, with many choosing to up the rent when a tenancy renewed. Now, they are only permitted to increase their tenant’s rent once per year.

Among those tenants who did see their rent change, the average annual increase in May was 5.4%. This was unchanged from April and slightly below the 5.5% recorded in May 2025.

While the number of rent increases may rise in future months as landlords adjust to the new system, there is limited evidence to suggest that landlords pushed through rent increases in advance of 1 May. The number of rent increases between January and April 2026 was 3% lower than in the same period of 2025, indicating that behaviour remained broadly consistent in the run-up to implementation.

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Aneisha Beveridge, head of research at Hamptons, said: “While this partly reflects a backdrop of slower rental growth, falls suggests landlords have, at least initially, been less likely to increase rents than under the previous system, where changes predominantly coincided with a tenant signing a new contract.

“If the pattern seen in Scotland plays out in England, tenants may see their rent rise less often going forward. However, the size of the increase may be larger, bridging the gap that can build up between what tenants are currently paying and the prevailing market rate. Last month, the average rent increase in Scotland was 7.7%, higher than in any other region in Great Britain.”

Subdued market

Rent increases recorded for new lets in May were more subdued at 1.1% year-on-year, down from 1.2% April. This leaves the average rent paid by a tenant moving into a property at £1,382 per month across Great Britain.

Regionally, the average rent in the South East of England reached £1,500 per month in May, up 2% on the same period last year. This is the first time any region outside London has seen rents reach the £1,500 per month mark. London rents, by comparison, currently stand at £2,294 per month, having last been at £1,500 per month in June 2012.

Beveridge added: “While rental growth on newly agreed lets remains cool by recent standards, landlords appear to be taking a more cautious approach when selecting new tenants.

“Many are showing a willingness to wait for the right tenant rather than accept the first offer, which has reduced the number of homes let and helped to keep a lid on rental growth for new tenants.”

Annual rental growth

Source: Hamptons using Connells Group data