Landlords hold off rent rises as Act bites

Aneisha Beveridge , of Hamptons, says rent increases in May were 23% down on the same time last year.

Landlords have limited rent increases in response to the introduction of the Renters’ Rights Act last month.

New figures from Hamptons show tenants who saw their rent rise were 23% lower than last year.

There is also little evidence that property owners hiked rents ahead of the Act coming into force.

Replicated

Hamptons’ analysis of Connells data found that the number of rent increases between January and April was 3% lower than in the same period of 2025.

And if the level of rent increases recorded in May was replicated across the rest of the year, 31% of sitting tenants would see their rent rise, down from 40% in the 12 months to May 2025.

Hamptons says this reflects the move to a system under the Act where rents can only be increased once a year.

One of the first impacts of the Renters’ Rights Act has been a reduction in the number of existing tenants seeing their rent rise.”

Aneisha Beveridge, Head of Research at Hamptons (pictured), says: “One of the first impacts of the Renters’ Rights Act has been a reduction in the number of existing tenants seeing their rent rise.

“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.”

Low levels

Among tenants who saw their rent change, the average increase in May was 5.4%. While in Scotland it was 7.7%, where landlords have been operating under a similar system for longer.

And rental growth for tenants moving into a new home remains at relatively low levels.

Beveridge adds: “If the pattern seen in Scotland plays out in England, tenants may see their rent rise less often going forward.”

And she adds: “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.”

More on rents


What's your opinion?

Back to top button