Rents rose before Renters’ Rights Act took effect

Landlords saw rents rise at their fastest pace in 11 months in April, the final month before the Renters’ Rights Act became law.

Hamptons says a tenant moving into a newly let home in Great Britain paid an average of £1,396, up 1.9% on a year earlier.

It was the fifth month in a row in which annual rent growth strengthened.

Inner London drove much of the increase, with new let rents up 6.7% year-on-year to an average of £2,840.

Landlords sold pre-RRA

Aneisha Beveridge, the head of research at Hamptons, said: “Rental growth strengthened in the final month before the Renters’ Rights Act became law.

“As some landlords opted to sell ahead of the changes, more tenants were forced back into the market, increasing demand for homes to rent.”

She adds: “While the full impact of the new rules is yet to play out, early evidence suggests they are already adding to upward pressure on rents.”

Fastest rent growth

Inner London’s rent growth was the fastest rate since November 2023, when rents were still recovering from the sharp falls seen during the pandemic.

Average new let rents in inner London are now 23% above their pre-pandemic peak.

It is also the only region in Great Britain where annual rent growth is above 3%.

Across Greater London, new let rents averaged £2,369, up 3.6% on the year.

Outer London saw a smaller 0.5% rise, taking the average to £2,022.

Average GB rent

Outside the capital, the average new let rent in Great Britain was £1,147, up 1% year-on-year.

The South recorded an average rent of £1,357, up 0.8%.

Within that, the South East rose 1.4% to £1,481, while the South West was unchanged at £1,245.

In the Midlands, rents averaged £1,051, up 1.2%.

The West Midlands rose 1.7% to £1,097, while the East Midlands increased 0.5% to £998.

The North recorded a 1.5% annual rise, taking the average new let rent to £977.

The North East rose 3.0% to £860, while Yorkshire and Humber increased 1.9% to £944.

Wales was the only listed region to record an annual fall in new let rents, down 1% to £876. Scotland rose 2.4% to £1,031.

Renewal rent rates

Tenants renewing existing agreements also faced higher costs in April.

The average renewal rent in Great Britain rose 3.2% over the year to £1,312 a month, with stronger increases outside London.

Renewal rents rose 4.8% in the North to £924 and 4.5% in the Midlands to £984.

In the North West, renewal rents increased 6.5% to £956, the highest annual renewal rise in the table.

Greater London renewal rents rose 2.5% to £2,219. Inner London renewals increased 1.7% to £2,700, while Outer London rose 3.4% to £1,865.