Rents across the UK have risen for the first time in five months, as the deadline for the Renters’ Rights Act draws near. New data from the HomeLet Rental Index reveals a modest increase in average rents, signalling a shift in the rental market as landlords and tenants adapt to forthcoming legislative changes.

Rents rise amid legislative countdown

According to the HomeLet Rental Index, the average rent in the UK increased to £1,311 in March 2026, up 0.8% from £1,301 in February. This marks the first month-on-month increase after a period of four consecutive months of rent decreases. London has seen a notable rise, with average rents climbing 1.5% since February to £2,097, which is 1.7% higher than the same time last year.

First clear increase since last autumn

Kate Wenham, customer development team leader at HomeLet and Let Alliance, commented on the recent data: “After several months where rents either dipped slightly or stood still, March’s data shows the first clear uptick since October.” She emphasised that despite affordability pressures remaining a concern for tenants, the market is settling into a “new normal” characterised by smaller, more measured rent increases rather than the sharp rises previously experienced.

Wenham also highlighted the importance of focusing on sustainable tenancies as the Renters’ Rights Act deadline of 1 May approaches. She advised landlords and agents to prioritise tenancy stability over pushing affordability to its limits. Furthermore, she stressed the continued necessity of robust fraud prevention through referencing processes and the value of Rent Guarantee insurance in maintaining stable tenancies and protecting landlords’ income.

Regional variations in rent changes

Outside London, average rents increased by £5 (0.4%) to £1,125 in March, representing a 1.6% rise compared to March 2025. The rental market shows a general trend of increasing rents across most regions, with eight areas reporting monthly rises and four experiencing decreases.

The strongest annual rent growth was observed in Northern Ireland (+4.9%), Scotland (+3.6%), and the North East (+3.2%). Conversely, Wales saw a slight monthly decline of 0.7%, with rents falling from £896 to £890, although this remains above the previous year’s level of £872.

What this means for landlords

For landlords, the recent rent increases signal a cautiously optimistic market where rent levels are stabilising after a period of decline. The approach of the Renters’ Rights Act means that landlords and agents should be preparing for new regulatory requirements by focusing on sustainable tenancy agreements that balance rental income with tenant affordability.

Maintaining rigorous tenant referencing and considering Rent Guarantee insurance will be crucial strategies to mitigate risk and ensure steady rental income in a market adjusting to legislative changes. Landlords should also be mindful of regional variations in rent trends when setting rental values to remain competitive and compliant.

Source: Based on reporting from Property118

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