"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"
- Aneisha Beveridge - Hamptons
The Renters' Rights Act became law on 1 May 2026, meaning most fixed-term tenancies in England have now shifted to periodic, or rolling, arrangements. Both landlords and tenants can serve notice to end a contract on a number of grounds, while landlords are now limited to increasing rents once per year.
Early evidence suggests this shift is already changing how often landlords adjust rents. According to Hamptons' analysis of Connells Group data, the number of tenants who saw their rent increase in May was 23% lower than in May 2025, and 16% below the five-year May average for 2021 to 2025.
There is little sign that landlords rushed through increases ahead of the deadline. The number of rent increases between January and April 2026 was just 3% lower than the same period in 2025, suggesting behaviour stayed broadly consistent in the run-up to implementation.
Fewer increases, but possibly bigger when they happen
If May's pattern were repeated across the rest of the year, an estimated 31% of tenants would see their rent rise once landlords become eligible to increase it, typically after a 12-month period. That marks a notable drop from 40% over the 12 months to May 2025, and from a peak of 50% in the year to January 2024, when rents on newly agreed lets were rising at double-digit rates.
This isn't simply a reflection of a cooling market. It points to a more structural change in how landlords manage rent reviews.
Previously, increases were often tied to tenancy renewals, allowing for smaller, more frequent adjustments. Under the new rules, landlords appear more likely to space out increases over longer periods.
Evidence from Scotland, where periodic tenancies have existed since 2017 alongside more recent rent controls, suggests this approach tends to lead to:
- fewer rent increases overall
- larger adjustments when increases do occur
- a closer link between increases and catching up to market rates
Among tenants whose rent did change in May, the average increase was 5.4%, unchanged from April and only slightly below the 5.5% recorded in May 2025. However, this is down from a peak of 7.3% during the height of rental growth, reflecting both cooler conditions and fewer landlords opting to raise rents at all. These figures remain considerably higher than the 1.1% annual growth seen on new lets, partly because increases for existing tenants often represent landlords catching up after rents have fallen behind market levels.
What Scotland might suggest for England
Where landlords in Scotland did raise rents, the increases were the largest in Great Britain, averaging 7.7% in May. Scotland has had periodic tenancies since 2017, and rent increases were capped at 3% a year until April 2024, when the cap was removed. The sharp rises seen in 2024 and 2025 partly reflected rents returning to market levels after being held down by the cap.
Since then, increases in Scotland have increasingly involved landlords making fewer, larger adjustments rather than frequent smaller ones, a pattern that could offer some indication of how England's market develops under the Renters' Rights Act.
New let rental growth stays subdued
Rental growth for tenants moving into new homes remains relatively low. The average rent on a newly agreed let across Great Britain rose 1.1% in the year to May 2025, down from 1.2% in April, leaving the average new-let rent at £1,382 per month.
Regionally, the south east of England saw average rents reach £1,500 per month in May, up 2.0% year-on-year, marking the first time a region outside London has hit that threshold. London rents stood at £2,294 per month, a level last seen across the capital in June 2012.
"One of the first impacts of the Renters' Rights Act has been a reduction in the number of existing tenants seeing their rent rise," said Aneisha Beveridge, head of research at Hamptons.
"While this partly reflects a backdrop of slower rental growth, it 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."
