45 Days to Renters Rights Act: UK Rents Start Rising Again

UK rents are climbing again, and the timing is hard to ignore!

New market figures show rental growth returning to positive territory for the first time since mid-2025, just as the UK rental sector counts down to the implementation of the Renters Rights Act on 1 May 2026.

With around 45 days remaining before the first major changes of the Act take effect, the latest data hints that the market may already be reacting. As landlords and tenants prepare for sweeping regulatory changes, upward pressure on rents could once again be building.

Background

After several months of slower movement, rents on newly agreed tenancies are starting to rise again.

The increases are still modest compared with the sharp rental growth seen in the past. However, the return to positive growth highlights a problem that has long defined the UK rental market: the supply-demand gap.

In many parts of the country, the number of homes available to rent remains limited. At the same time, tenant demand shows little sign of easing. When supply is tight, even small changes in the number of available properties can quickly push rents higher.

This underlying imbalance continues to shape rental trends across the UK and helps explain why prices are beginning to edge up once again.

What is the Renters Rights Act?

The Renters Rights Act is set to bring some of the biggest changes the private rented sector has seen in decades.

Designed to strengthen tenant protections and reshape how rental agreements work in England, the legislation will significantly alter the relationship between landlords and tenants. The Act aims to create a more stable and transparent rental system while introducing new responsibilities for landlords.

Some of the key changes this Act will bring include:

• Ending Section 21 “no-fault” evictions, which currently allow landlords to end a tenancy without giving a reason
• Replacing fixed-term tenancies with periodic rolling agreements, giving tenants greater flexibility to leave while remaining protected from sudden eviction
• Strengthening tenant rights, making it easier to challenge unfair practices or poor property conditions
• Introducing new compliance requirements for landlords and letting agents to ensure higher standards across the sector

Together, these measures are intended to give tenants greater security in their homes while improving accountability within the rental market.

Why Are Rents Rising Now

The timing of the latest rent rise is no coincidence. The UK rental market is reacting to the Renters Rights Act, which is set to take effect on 1 May 2026.

Some landlords are selling properties rather than re-letting them, wary of the new responsibilities and costs the Act will introduce. Fewer homes on the market means that tenants are competing for a smaller pool of available rentals, naturally driving prices upward.

Those landlords who are staying are adjusting rents pre-emptively, factoring in the compliance costs they expect to face once the reforms kick in. In areas where demand is high, even a modest shift in supply can ripple through the market, nudging rents higher across the board.

It’s not just about numbers on a spreadsheet. Behind the figures are real decisions: landlords weighing profit against regulation, tenants bracing for change, and a market responding to both. That push-and-pull between supply and demand, uncertainty and strategy, is what’s shaping today’s rental growth and why we’re seeing prices start to climb again.

What Landlords and Tenants Should Expect in 2026

As the implementation date for the Renters Rights Act draws closer, both landlords and tenants are likely to see further changes in the rental landscape.

For landlords, the focus will increasingly be on compliance, tenancy management and adapting to new legal frameworks.

For tenants, the reforms may provide greater security and protection, although rising rents could remain a challenge in areas where demand continues to exceed supply.

Conclusion

The return of rental growth, combined with the countdown to the Renters Rights Act implementation, signals that the UK rental market is entering a period of change. While rents are rising modestly for now, the broader pressures that have long defined the sector, tight supply, high tenant demand, higher costs for landlords, and evolving regulations, are unlikely to disappear.

For landlords, the message is that preparation is key. Understanding the implications of the upcoming reforms, reviewing portfolios and planning for compliance will be essential to staying ahead in a shifting market. For tenants, the Act promises stronger protections and more security in their homes, but competition for rental properties is likely to remain intense in high-demand areas.