## Rent Growth Returns Across Great Britain

New data from Hamptons reveals that annual rent growth for newly agreed tenancies in Great Britain has returned to positive territory as of February 2026. Average monthly rents for newly let homes reached £1,368, representing a 0.6% increase compared to the same month last year. This marks the end of a seven-month period of annual rent declines that began in June 2025.

For UK landlords and letting agents, this shift indicates a stabilisation and modest recovery in rental income after a period of falling rents. It may also reflect changing market conditions and tenant demand as the private rented sector adapts to evolving economic and legislative factors.

## London Leads the Market with Strongest Rent Increases

London recorded the most significant rent growth, with a 1% rise over the past year, ending a 13-month sequence of falling rents. Inner London was the primary driver of this increase, seeing rents grow by 2.6% year-on-year. This is notable as it is the first time in 27 months that London’s rent growth has outpaced the rest of Great Britain, where rents outside the capital increased by only 0.3%.

Despite this growth, supply in London remains tight. The number of homes available to rent in the capital is 42.4% lower than it was ten years ago, with outer London experiencing an even sharper contraction of 50.7%. This constrained supply is likely a key factor supporting rent rises, as demand continues to outstrip available properties.

For landlords in London, these figures suggest a strengthening rental market, although the limited supply may also mean increased competition for tenants and potential upward pressure on rents.

## Impact of the Renters’ Rights Act on Rental Growth

Aneisha Beveridge, Hamptons’ head of research, commented on the approaching implementation of the Renters’ Rights Act, noting that rental growth has started to creep up with less than 50 days to go before the legislation takes effect on 1 May 2026. However, she observed that awareness of the changes remains relatively low among landlords, and there have been few signs of landlords pushing rents higher specifically in anticipation of the Act.

She added, “Whether the Renters’ Rights Act proves to be inflationary for rents will ultimately depend on how well it works in practise for landlords.” This suggests that landlords should monitor the practical effects of the legislation closely, as it may influence rental pricing strategies and market behaviour in the coming months.

## Regional Rent Growth Trends Outside London

Beyond London, regional rent data shows a return to 1% annual growth across the three northern regions for the first time since June 2025. The Midlands regions also experienced stronger increases, reaching their highest annual growth since August 2025.

Tenants renewing their agreements have faced an average rent increase of 2.2% over the last 12 months, marking the slowest pace of renewal rent growth since September 2021. Over the past five years, renewal rents have risen by 24.7%, highlighting the longer-term trend of increasing costs for tenants staying in the same property.

For landlords and agents operating outside London, these figures indicate a modest but positive rental market recovery, with renewal rents rising at a slower rate, potentially reflecting tenant retention strategies or market conditions.

## What This Means for UK Landlords and Letting Agents

The return of rent growth, particularly in London, signals a cautiously optimistic outlook for landlords seeking to maximise rental income in 2026. However, the ongoing supply shortages in the capital and legislative changes such as the Renters’ Rights Act require landlords to stay informed and adaptable.

Letting agents should prepare to advise landlords on the implications of these trends, including the potential impact of new regulations and regional variations in rent growth. Maintaining awareness of market shifts will be essential for effective property management and tenant relations.

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Suggested internal link anchors

– annual rent growth
– newly agreed tenancies
– Renters’ Rights Act
– rental market in London
– regional rent data
– tenancy renewals
– rental supply shortages
– rent increases UK
– letting agents advice
– landlord rental income
– property management trends

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TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/