The number of tenants facing rent increases fell sharply in the first month following the introduction of the Renters’ Rights Act, according to new data that suggests landlords may be adjusting to the new rules governing rent reviews.
Figures from Hamptons lettings agency, which analysed data from Connells Group’s range of agency brands, show that the number of existing tenants whose rent increased in May was 23% lower than in the same month last year. If that trend continues throughout 2026, around 31% of sitting tenants will experience a rent rise over the course of the year, compared with 40% in the 12 months to May 2025 and around 50% at the start of 2024.
The shift comes as landlords adapt to a system under which rents can generally only be increased once a year. While fewer tenants are seeing rent rises, early evidence suggests those increases may be larger when they do occur.
Among tenants whose rent changed in May, the average increase was 5.4%. In Scotland, where landlords have operated under similar restrictions for longer following rent control measures, the average increase was higher at 7.7%.
The findings mirror trends seen north of the border, where landlords have tended to space out rent increases rather than implement smaller, more frequent adjustments, raising the prospect that tenants could face fewer rent rises but larger annual increases in future.
Scotland has had periodic tenancies since 2017, and rent increases were typically capped at 3% per year until April 2024, when this cap was lifted. The sharp increases in Scottish rents seen during 2024 and 2025 reflected rents returning to market levels after being capped.
However, since then, rent increases have increasingly reflected landlords making fewer, but larger adjustments to rents. This may offer an early indication of how the market in England evolves under the Renters’ Rights Act.
Annual rental growth
| Region | New lets | All tenants | ||
| Average monthly rent | YoY change % | Average monthly rent | Average rent change % | |
| Greater London | £2,294 | 0.6% | £2,374 | 4.9% |
| Inner London | £2,669 | 1.5% | £2,843 | 4.4% |
| Outer London | £1,995 | -0.2% | £2,029 | 5.3% |
| South | £1,364 | 1.2% | £1,345 | 5.4% |
| East of England | £1,225 | 0.3% | £1,375 | 5.2% |
| South East | £1,500 | 2.0% | £1,423 | 5.5% |
| South West | £1,265 | 0.9% | £1,196 | 5.3% |
| Midlands | £1,051 | 1.1% | £1,012 | 5.8% |
| East Midlands | £987 | -0.9% | £959 | 5.3% |
| West Midlands | £1,107 | 2.6% | £1,059 | 6.2% |
| North | £971 | 1.9% | £935 | 5.4% |
| North East | £856 | 3.8% | £832 | 5.1% |
| North West | £1,042 | 1.8% | £997 | 5.9% |
| Yorkshire & Humber | £927 | 1.4% | £898 | 4.9% |
| Wales | £887 | 1.1% | £844 | 5.8% |
| Scotland | £1,029 | 0.6% | £952 | 7.7% |
| Great Britain | £1,382 | 1.1% | £1,375 | 5.4% |
| Great Britain (Ex London) | £1,148 | 1.4% | £1,119 | 5.5% |
Source: Hamptons using Connells Group data
Aneisha Beveridge, head of research at Hamptons, said: “One of the first impacts of the Renters’ Rights Act has been a reduction in the number of existing tenants seeing their rent rise. While this partly reflects a backdrop of slower rental growth, falls suggests landlords have, at least initially, been less likely to increase rents than under the previous system where changes predominantly coincided with a tenant signing a new contract.
“If the pattern seen in Scotland plays out in England, tenants may see their rent rise less often going forward. However, the size of the increase may be larger, bridging the gap that can build up between what tenants are currently paying and the prevailing market rate. Last month, the average rent increase in Scotland was 7.7%, higher than in any other region in Great Britain.
“While rental growth on newly agreed lets remains cool by recent standards, landlords appear to be taking a more cautious approach when selecting new tenants. Many are showing a willingness to wait for the right tenant rather than accept the first offer, which has reduced the number of homes let and helped to keep a lid on rental growth for new tenants.”
