Rent rises linked to unintended effects of Renters Rights Act
New government data shows average private rents in the UK increased by 3.7% over the past year, with experts attributing this rise to the consequences of the Renters Rights Act affecting landlord behaviour and market supply.
According to the Office for National Statistics, the average monthly private rent in the UK reached £1,393 in July 2026, approximately £50 higher than the previous year. Industry commentators have linked this increase directly to the Renters Rights Act, which has altered landlord risk assessments and market participation.
Tom Bill, head of UK residential research at Knight Frank, explained that the rent rises are an outcome of the Renters Rights Act’s impact on the sector. He noted that some landlords have exited the market, reducing supply, while others have raised asking rents to offset increased financial risks. These effects, although unintended, align with the Act’s aim to strengthen tenant rights but have added to the financial pressures tenants face.
Expert insights on rental market dynamics post-Renters Rights Act
Jeremy Leaf, a north London estate agent and former RICS residential chairman, observed that demand remains strong, especially for higher-end properties as tenants seek accommodation ahead of the new school term. He highlighted that the shortage of supply supports sustained rent levels.
Leaf also noted that some landlords continue to sell properties due to concerns about the Renters Rights Act and tax changes. Those remaining in the sector are adopting stricter tenant referencing to safeguard their ability to regain possession if necessary. Additionally, he remarked on increased tenant activity driven by the new rules, with some tenants opting to move rather than commit to fixed-term tenancies.
These observations suggest that the Act has influenced landlord and tenant behaviours, affecting supply, demand, and rental pricing strategies across the private rented sector.
How the Renters Rights Act is reshaping landlord risk and supply
The Renters Rights Act was designed to rebalance the rental market by enhancing tenant protections, including restrictions on eviction grounds and improved security of tenure. However, this has introduced new financial and operational risks for landlords, who now face more complex possession procedures and potential delays in regaining properties.
In response, some landlords have chosen to exit the market, reducing available rental stock. Others have increased rents to compensate for the heightened risk and administrative burden. This contraction in supply, combined with steady or growing demand, naturally exerts upward pressure on rental prices.
For landlords managing small portfolios, the Act means reassessing risk tolerance and potentially adjusting rent levels or tenant selection criteria. Letting agents are also adapting by tightening referencing processes and advising clients on the implications of the new legal framework.
Practical implications for landlords and letting agents
Landlords should review their tenancy agreements and possession strategies to ensure compliance with the Renters Rights Act. Given the increased difficulty in regaining possession, maintaining robust tenant references and clear documentation is more important than ever.
Rent setting may need to reflect the additional risks and costs introduced by the Act, but landlords should balance this against market conditions and tenant affordability to avoid prolonged void periods. Letting agents play a crucial role in advising landlords on these factors and managing tenant expectations.
The Act’s influence on tenant behaviour, such as increased mobility and shorter tenancy durations, may require landlords and agents to prepare for more frequent tenant turnover and associated costs.
Areas of uncertainty and what to watch next
While the Renters Rights Act’s immediate effects are becoming clearer, longer-term impacts remain uncertain. It is not yet fully known how the market will adjust if more landlords exit or if further regulatory changes occur.
Potential government responses to rising rents and supply constraints could include incentives for landlords or adjustments to tenant protections. Landlords and agents should monitor official guidance and sector developments closely to anticipate any policy shifts.
Additionally, the balance between tenant rights and landlord protections may continue to evolve through case law and future legislation, affecting possession procedures and rent regulation.
What landlords should consider now
Landlords should conduct thorough reviews of their portfolios in light of the Renters Rights Act. This includes checking tenancy agreements for compliance, ensuring all safety and licensing obligations are met, and maintaining detailed records of tenant communications and references.
Adjusting rent levels may be necessary but should be done with care to remain competitive and compliant with any local rent controls. Landlords should also prepare for potentially longer possession processes and consider professional advice on managing these risks.
Letting agents should support landlords by providing up-to-date information on legal requirements, assisting with tenant referencing, and advising on market trends influenced by the Act.
Supporting landlords through regulatory changes with TLA
The Landlord Association offers members access to a range of compliance resources and practical guidance tailored to the challenges posed by the Renters Rights Act. Through TLA membership, landlords and letting agents can stay informed about evolving legislation, access document templates, and receive support in managing tenancy agreements and possession procedures.
TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords organise their portfolios, maintain rental documentation, and record key actions such as inspections and communications. This can be particularly useful in demonstrating compliance and managing the increased administrative demands introduced by the Act.
Members interested in exploring these resources and ORBIT BETA access can review TLA’s landlord membership options and compliance support to better prepare for ongoing regulatory developments.
Looking ahead, the private rented sector will need to adapt continuously as the full effects of the Renters Rights Act unfold. Landlords and agents who proactively engage with compliance and market changes will be better positioned to manage risks and maintain sustainable rental businesses.
Sources: Letting Agent Today
TLA - The Landlord Association