Tenant demand drives up rents – Aldermore

Rents continue to rise as government legislation puts pressure on landlords, according to new research.

Data by Aldermore reveal two out of three renters are paying more rent than expected as tenant demand continues to surge.

The news comes as the Renters’ Rights Act came into force on 1 May 2026.

Surge in tenant demand

According to the data, nearly two-thirds (63%) say they ended up paying more rent than they initially intended when securing their current home.

A similar proportion (62%) say they were competing with more prospective tenants than expected when trying to secure a rental property.

Six in ten (60%) say they found it difficult to secure a suitable property, while more than half (55%) experienced a longer search process than expected.

The average tenancy length has also edged up to 4.5 years. However, the picture is more challenging for those on the move, with nearly a quarter (23%) of renters moving home in the last year.

Landlords are having to adapt

Jon Cooper, director of mortgages at Aldermore, explains with additional regulation for landlords, many are having to adapt.

He said: “Our latest Buy to Let Index shows that while many renters are staying in their homes for longer, those looking to move are still facing a highly competitive market. Many are finding they need to pay more than they originally expected, and in some cases expand their search to previously unthought-of areas just to secure a suitable home.

“At the same time, the operating environment for landlords has become more complex, which threatens to place pressure on the number of available rental properties. Increased regulation and wider economic pressures mean many landlords are having to adapt how they manage their properties and finances.

“To avoid exacerbating the current challenge facing renters, the focus must be on maintaining sufficient supply in the private rental sector, to support affordability and give renters greater choice and mobility.”

The data also reveals two out of five renters (41%) say they had to move to a different area because there were no affordable rental properties where they wanted to live, while over a third (36%) moved further away from work, family or support networks.