Rents across Great Britain increased notably in April, the month before the Renters’ Rights Act (RRA) came into force. This rise reflects a tightening rental market as landlords adjusted to impending legislative changes.

Rents reach highest growth in 11 months

According to Hamptons, tenants moving into newly let properties in Great Britain paid an average rent of £1,396 in April, marking a 1.9% increase compared to the previous year. This was the fifth consecutive month of strengthening annual rent growth, with April recording the fastest pace since May 2025.

Inner London was a key driver of this increase, where new let rents rose by 6.7% year-on-year to an average of £2,840. This represents the fastest rent growth in Inner London since November 2023, a period when rents were still recovering from pandemic-related declines. Notably, average new let rents in Inner London are now 23% above their pre-pandemic peak.

Landlords selling ahead of the Renters’ Rights Act

Aneisha Beveridge, Head of Research at Hamptons, explained that rental growth strengthened in April as some landlords chose to sell their properties before the new legislation took effect. This increased the number of tenants seeking rental accommodation, thereby pushing up demand and rents.

She added, “While the full impact of the new rules is yet to play out, early evidence suggests they are already adding to upward pressure on rents.” This suggests that the RRA, designed to improve tenant protections, may initially contribute to higher rental costs as landlords adjust their portfolios and pricing strategies.

Regional variations in rent growth

Across Greater London, average new let rents rose by 3.6% to £2,369, with Outer London experiencing a smaller increase of 0.5%, reaching £2,022. Outside the capital, the average new let rent in Great Britain was £1,147, up 1% year-on-year.

In the South, rents increased modestly by 0.8% to £1,357, with the South East rising 1.4% to £1,481 and the South West remaining unchanged at £1,245. The Midlands saw a 1.2% rise to £1,051, with the West Midlands up 1.7% to £1,097 and the East Midlands up 0.5% to £998.

The North recorded a 1.5% annual increase, bringing average new let rents to £977. Within this region, the North East saw a 3.0% rise to £860, while Yorkshire and Humber increased by 1.9% to £944. Wales was the only region to record a decline, with new let rents falling by 1% to £876. Scotland experienced a 2.4% increase, reaching £1,031.

Renewal rents also rise

Tenants renewing existing tenancies faced higher costs as well. The average renewal rent in Great Britain rose by 3.2% over the year to £1,312 per month, with stronger increases outside London.

Renewal rents increased by 4.8% in the North to £924 and by 4.5% in the Midlands to £984. The North West experienced the highest annual renewal rent rise at 6.5%, reaching £956. In Greater London, renewal rents rose by 2.5% to £2,219, with Inner London renewals up 1.7% to £2,700 and Outer London renewals increasing by 3.4% to £1,865.

What this means for landlords

The data suggests landlords are responding proactively to the Renters’ Rights Act by adjusting their portfolios and rental pricing ahead of the new regulations. Increased demand from tenants displaced by landlords selling properties may continue to support rent rises in the short term.

Landlords should monitor how the RRA’s full implementation affects market dynamics, as early indications point to upward pressure on rents. Understanding regional variations and renewal rent trends will be important for setting competitive and compliant rental levels.

Source: Based on reporting from Property118

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