Renters Rights Act linked to recent UK rent increases
New government data shows UK average private rents rose by 3.7% year-on-year in July 2026, with experts attributing the increase partly to effects of the Renters Rights Act reducing rental supply and raising landlord costs.
The Office for National Statistics reported that the average monthly rent across the UK reached £1,393 in July 2026, up approximately £50 compared to the previous year. Industry commentators suggest this rise is connected to the unintended consequences of the Renters Rights Act, which has influenced landlord behaviour and market dynamics since its introduction.
Tom Bill, head of UK residential research at Knight Frank, explained that some landlords have exited the rental market due to the new legislation, shrinking the available supply of rental properties. Others who remain have increased asking rents to offset heightened financial risks introduced by the Act. Bill noted that while these outcomes were not the intended goals of the policy, they were foreseeable and have added to the financial pressures faced by tenants.
Regional rent trends and landlord responses
Jeremy Leaf, a north London estate agent and former RICS residential chairman, confirmed that rental demand remains strong, especially for higher-end properties as tenants prepare for the new school term. He highlighted that rents have generally held firm due to ongoing supply shortages. Leaf also observed that some landlords continue to sell properties because of concerns about the Renters Rights Act and tax changes, while those who stay in the sector are demanding more rigorous tenant references to mitigate risks associated with the new tenancy protections.
Leaf further commented on tenant behaviour changes, noting increased mobility prompted by tenants taking advantage of the new rules, which may disrupt fixed-term agreements more frequently than before.
Regionally, England saw average rents rise to £1,451 per month, a 3.8% increase year-on-year. Wales experienced a 4.5% rise to £843, Scotland’s rents increased by 1.7% to £1,016, and Northern Ireland recorded a 2.3% increase to £875—the lowest rental inflation in over five years. The North East of England reported the highest rental growth at 6.3%, while the South East had the lowest at 2.9%. London remains the most expensive rental market, with an average monthly rent of £2,317, compared to £783 in the North East.
Impact of the Renters Rights Act on the private rented sector
The Renters Rights Act was designed to rebalance power towards tenants by strengthening their protections, including changes to eviction processes and tenancy security. However, the legislation has also introduced new challenges for landlords, including increased financial risks and administrative burdens. Some landlords have responded by exiting the market, reducing the overall rental stock, while others have raised rents to compensate for the increased costs and risks.
This reduction in supply exacerbates affordability issues for tenants, particularly in high-demand areas. The Act’s impact on landlord confidence and investment decisions is a key factor influencing market conditions. Additionally, landlords are adopting stricter tenant vetting procedures to safeguard their interests under the new legal framework.
Practical implications for landlords and letting agents
For landlords managing small portfolios, the Renters Rights Act means greater scrutiny of tenant references and a need to carefully assess the financial viability of letting properties under the new rules. Letting agents may find themselves increasingly involved in advising landlords on compliance and risk management, as well as navigating tenant demands empowered by the Act.
Rising rents may reflect landlords’ attempts to mitigate the financial impact of the Act, but this strategy could also reduce the pool of prospective tenants able to afford market rents. Landlords should monitor local market conditions closely and consider the balance between rent levels and tenant demand to minimise void periods.
Agents and landlords need to stay informed about ongoing regulatory developments and ensure tenancy agreements and possession procedures comply with the new legal requirements. This includes understanding the nuances of eviction protections and tenant rights introduced by the Act.
Ongoing uncertainties and what to watch
While the Renters Rights Act’s initial effects are becoming clearer, uncertainties remain regarding its long-term impact on rental supply and affordability. The extent to which landlords will continue to exit the market or adjust rents further is yet to be fully seen. Additionally, how courts and tribunals interpret and enforce the new tenancy protections will influence landlord and tenant behaviour going forward.
Future government interventions or amendments to the Act could also alter the regulatory landscape. Landlords and agents should watch for updates from the Ministry of Housing, Communities & Local Government and the judiciary to anticipate changes and adapt their practices accordingly.
Considerations for landlords moving forward
Landlords should review their portfolios and tenancy management strategies in light of the Renters Rights Act. This includes ensuring tenancy agreements reflect current legal requirements and preparing for potentially longer possession processes. Maintaining detailed records of tenant communications and compliance actions will be increasingly important.
Engaging professional advice from letting agents or legal experts can help landlords navigate the complexities introduced by the Act. Monitoring local rental market trends will assist in setting competitive rents that balance income needs with tenant affordability.
Landlords should also consider the impact of tax changes and other regulatory factors that compound the challenges posed by the Act. A proactive approach to compliance and risk management will be essential to sustaining rental income and portfolio viability.
Supporting landlords with compliance and management tools
The Landlord Association (TLA) offers resources and support tailored to help landlords and letting agents manage the demands of the Renters Rights Act. Through membership, landlords can access guidance on tenancy law compliance, document templates, and updates on regulatory changes. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist members in organising property records, managing rental documentation, and recording key actions such as inspections and communications.
ORBIT’s developing features include tools to help landlords keep track of possession procedures and tenant references, which are critical under the new Act. Access to TLA’s compliance resources and AI assistant can support landlords in maintaining evidence of compliance and preparing for evolving legal obligations.
Exploring TLA membership and ORBIT BETA access can provide practical assistance in adapting to the ongoing regulatory environment and safeguarding rental portfolios.
Looking ahead, landlords will need to remain vigilant as the full effects of the Renters Rights Act continue to unfold. Staying informed and utilising available compliance tools will be vital in managing risks and sustaining rental operations.
Sources: Landlord Today
TLA - The Landlord Association