Rents across the UK continue to rise, with London leading the growth following the introduction of the Renters’ Rights Act on 1 May 2026. New data reveals steady rental price increases in most regions, highlighting a market adjusting to recent legislative changes.
UK rental prices continue upward trend
HomeLet’s rental index shows the average monthly rent across the UK reached £1,353 in June 2026, marking a 1.0% increase from £1,340 in May. This rise follows the implementation of the Renters’ Rights Act on 1 May 2026.
London drives strongest rental growth
Excluding Greater London, where rents are typically higher and influence the national average, the average monthly rent across the rest of the UK increased to £1,157 in June, up 1.0% from £1,146 in May and 2.7% higher than June 2025.
In Greater London, the average rent now stands at £2,181, a 0.9% rise from May. Over the past year, rents in the capital have grown by 5.0%, the highest regional increase in the UK.
Market adapting to new legislation
Kristjan Byfield, co-founder of Depositary, commented on the evolving rental market: “While statistics indicate rental growth, much of this reflects market repricing following the Renters’ Rights Act rather than a significant change in tenant demand.”
He noted that tenant activity is increasing ahead of the summer market, with tenants now planning their searches up to two months in advance. Pricing strategies have become more sensitive, as landlords can no longer accept offers above the asking rent. “Getting the launch price right is crucial; too high and momentum is lost, too low and landlords risk underselling,” he added.
Regional rental growth remains steady
Most regions saw monthly rental increases in June, with Scotland leading at 3.6%, followed by Wales at 1.9% and the North East at 1.4%. Nationwide’s house price index also reported an uptick in annual house price growth to 2.2% in June, up from 1.7% in May.
Preparing your portfolio for the new requirements
With rental prices adjusting in response to recent legislation, landlords and agents must carefully review their pricing strategies and tenancy arrangements. TLA membership offers access to practical compliance resources and guidance tailored to the evolving private rented sector.
TLA is currently BETA testing ORBIT™, its new property management and compliance platform designed to help landlords organise property records, manage rental documents and keep track of compliance activity in one place. This can be particularly useful for adapting to changes brought by the Renters’ Rights Act and ensuring documentation is up to date.
Members can explore support materials and tools to assist with managing rental pricing and tenancy compliance in the current market environment.
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