Rents across the UK have seen a modest increase for the first time in five months, though they remain below last October’s peak, according to the latest HomeLet Rental Index. The survey shows that average UK rents rose to £1,311 in March 2026, marking a 0.8% month-on-month increase from February’s £1,301. Compared with the same month last year, rents are 1.8% higher than March 2025, when the national average was £1,288. This indicates a market that is gradually stabilising after a period of fluctuation.
Outside London, rents have risen more slowly, with the average for the rest of the UK climbing by just £5 (0.4%) to £1,125. This is a 1.6% increase compared with March 2025, suggesting that while growth is returning, it remains modest. London, meanwhile, experienced its first monthly increase after four consecutive months of declines. Average rents in the capital rose by 1.5% month-on-month to £2,097, representing a 1.7% rise compared with March 2025.
Regionally, the picture is mixed. Eight regions saw rent rises in March, while four experienced small decreases. Northern Ireland recorded the highest annual increase at 4.9%, followed by Scotland with 3.6%, and the North East at 3.2%. In terms of month-on-month growth, the strongest rises were seen in London (+1.5%), Northern Ireland (+1.3%), and the South West (+1.1%). These figures suggest that while rents are beginning to climb again, the increases are more measured than the sharp rises seen in previous years.
A spokesperson from HomeLet and the Let Alliance said: “March’s data marks the first clear uptick since October. Tenants still face affordability pressures, but the market is adjusting to a new normal. Rent rises are now smaller and more controlled, reflecting a more stable rental environment.”
The upcoming introduction of the Renters’ Rights Act on 1 May 2026 is expected to influence the rental market further. The Act is likely to encourage landlords and agents to focus on sustainable tenancies, ensuring rents remain manageable for tenants rather than pushing affordability to breaking point. Effective tenant referencing and the use of Rent Guarantee insurance are also vital tools for landlords to maintain stable tenancies, protect rental income, and reduce risks.
For landlords, the slower pace of rent growth provides an opportunity to reassess their portfolios and align rental strategies with evolving market conditions. For tenants, the figures offer a small measure of relief, showing that while rents are increasing, the rises are not as severe as in previous years.
Overall, the March 2026 HomeLet Rental Index paints a picture of a rental market that is stabilising and adapting. Rent increases are beginning to return, but they are more gradual and sustainable, indicating a market that is gradually settling into a new normal. This measured growth, combined with legislative changes and more careful tenancy management, suggests a rental sector that is moving towards longer-term stability and predictability for both landlords and tenants.
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