Rental growth has accelerated across five of England's nine regions since the Renters' Rights Act came into force at the start of May, according to research by London lettings and estate agent Benham and Reeves.
The analysis compared rental value changes across England and each of its regions during the period since implementation against an equivalent window immediately before it. At a national level, the pace of growth has held steady.
The average monthly rent rose 0.6% to £1,451 from £1,442 since implementation, matching the same 0.6% increase recorded during the preceding period, when rents climbed from £1,434 to £1,442.
The regional picture, however, tells a different story. Rents are now rising faster across five of the nine English regions, with the West Midlands recording the largest acceleration. Rents there have increased 0.8% since implementation, compared with 0.2% during the equivalent period before.
The North West has also seen growth pick up, with rents rising 1.2% since implementation against 0.7% previously. Yorkshire and the Humber and the North East have both moved from 0.6% growth to 0.9%, while London completes the five. Average rents in the capital rose 1% to £2,317 per month, up from £2,294, compared with 0.6% growth during the same pre-implementation window.
The East Midlands held flat at 0.4%, while growth slowed across the East of England, South West and South East.
Within London, the borough-level data shows sharper acceleration in some areas. Enfield and Merton recorded the highest growth of any borough since implementation, both posting 1.8% rises. Enfield had grown at 1% during the prior period; Merton at 1.5%.
Greenwich saw growth increase from 0.4% to 1.4%, and Ealing from 0.4% to 1.2%. Southwark recorded a rise of 1.5% since implementation, compared with 0.3% beforehand. The turnaround in Kensington and Chelsea was particularly notable: rents had fallen 0.2% in the preceding period but have since risen 1.1%.
Marc von Grundherr, director of Benham and Reeves, said the Act had created uncertainty in the run-up to its introduction. "The Renters' Rights Act has been one of the biggest changes to the rental sector in years and it inevitably created a degree of uncertainty amongst both landlords and tenants in the run-up to implementation.
"We saw many tenants sitting on the fence while they waited to see what the new landscape would look like, rather than committing to their next move. Now that implementation has happened and there is greater clarity around the rules of engagement, we've seen that pent-up demand start to return to the market.
"At a national level, rental growth has remained consistent, but the fact that rents are now rising at a faster rate across more than half of England's regions suggests that this renewed activity is already starting to make itself felt.
"For landlords, this demonstrates the continued strength of the underlying rental market. Tenant demand remains extremely robust and, with rental stock still limited in many areas, an increase in activity naturally creates greater competition for the homes that are available.
"London provides a particularly good example. The acceleration across the capital as a whole has been relatively measured, but in some boroughs the change has been far more pronounced as tenant activity has picked up.
"It's still early days but what we're currently seeing is a rental market that spent months adjusting to a substantial piece of legislation and is now getting back to business. For landlords who have remained committed to the sector, the fundamentals of strong tenant demand and constrained supply remain very much intact."
