Early evidence from the first month of the Renters’ Rights Act suggests a notable shift in how rent increases are being applied across the private rented sector. Fewer sitting tenants are seeing their rent go up, but when increases do occur, they tend to be larger than in previous years.
According to analysis from Hamptons, using data from Connells Group lettings agencies, the average annual rent increase recorded in May stood at 5.4% for tenants who experienced a change.
Fewer tenants affected by rent rises
The data indicates that the number of tenants facing rent increases in May was 23% lower than in May 2025. It also came in 16% below the five-year average for May between 2021 and 2025.
Importantly, there is little evidence to suggest that landlords brought forward rent rises ahead of the Renters’ Rights Act coming into force on 1 May. Instead, behaviour appears to have remained relatively steady in the months leading up to implementation.
Between January and April 2026, the number of rent increases was actually 3% lower than during the same period in 2025. This suggests landlords did not significantly adjust pricing strategies in anticipation of the new rules.
Based on current trends, Hamptons estimates that if May’s pattern were to continue over a full year, around 31% of tenants would experience a rent increase. This is a noticeable fall compared with 40% in the year to May 2025, and significantly below the peak of 50% seen in early 2024, when rental growth was at its strongest.
A shift in rental pricing behaviour
The findings point towards a structural change in how landlords adjust rents rather than a simple cooling of the market. Under the previous system, rent increases were more frequently aligned with tenancy renewals, leading to smaller, more regular adjustments over time.
Under the new regime, landlords appear more likely to leave rents unchanged for longer periods before applying a larger increase. This creates fewer rent adjustment events overall, but more pronounced changes when they do take place.
This pattern suggests a shift away from incremental annual increases towards a model where rent remains stable for longer, followed by periodic reassessments.
Larger increases when rents are reviewed
Although fewer tenants are seeing rent increases, those who do are experiencing relatively higher adjustments. In May, the average increase for affected tenants was 5.4%, which remains significantly higher than growth in newly agreed lets.
For comparison, rents on new tenancy agreements rose by just 1.1% over the same period. This gap reflects the fact that sitting tenants often pay rents that have not been updated for some time, meaning adjustments tend to bring them closer to current market levels.
In many cases, these increases are described as “catch-up” adjustments rather than purely reflective of short-term market movements.
Evidence from Scotland
Similar trends have already been observed in Scotland, where periodic tenancies were introduced in 2017. Although Scotland also implemented rent control measures for a period, the market has continued to show a similar pattern of fewer increases overall, combined with larger adjustments when changes do occur.
In May, Scotland recorded average rent increases of 7.7%, highlighting how landlords there have increasingly made more substantial adjustments after periods of restricted or limited rent growth.
Following the removal of rent caps in 2024, Scottish rents rose sharply as they realigned with market conditions. Since then, the market has gradually shifted towards fewer rent changes, but more significant increases when rents are reviewed.
What this could mean for England
While the Renters’ Rights Act is still in its early stages, these initial findings suggest that England may begin to follow a similar trajectory to Scotland over time.
Rather than frequent, small rent increases, the market may move towards longer periods of stability followed by more noticeable adjustments. This could provide tenants with greater predictability in the short term, but also result in sharper changes when rent reviews eventually take place.
For landlords, this may mean a change in strategy, with rent setting becoming more closely tied to longer-term market conditions rather than annual adjustments.
Overall outlook
Although it is too early to draw firm conclusions, the early data suggests a clear shift in rental behaviour under the new legislation. Fewer rent increases are being applied, but those increases that do occur are larger on average.
If this trend continues, it could reshape how rent evolves in the private rented sector, moving away from frequent incremental rises towards a more staggered pattern of adjustment.
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