Rent price slowdown as Renters’ Rights Act looms

Rents are holding steady ahead of the Renters’ Rights Act, according to a new survey.

Data from Rightmove shows that, despite a slowdown in rental price growth, the number of newly listed rental properties coming onto the market in March was actually 6% lower than at the same point last year.

The Renters’ Rights Act is set to come into force on 1 May 2026.

No surge in newly listed homes for rent

According to Rightmove, the average advertised rent of homes outside of London remains flat (0.0%) at £1,370 per calendar month, the first time since 2017 that there has been no rise from Q4 to Q1.

However, average rents outside of London are still 1.6% higher than this time last year, though this is the lowest this figure has been since 2018.

The Rightmove data also reveals the average rental home now receives eight enquiries, down from 11 a year ago and 29 at the 2022 peak, though this is still higher than the average of five seen pre-pandemic.

The total number of available homes to rent is now 3% higher than a year ago, and at the highest level for this time of year since 2021, but there’s been no surge in newly listed homes for rent.

Landlords need to position rents correctly

Rightmove’s property expert Colleen Babcock explains the data shows a balanced rental market.

She said: “Rents holding steady this quarter reflects how affordability remains stretched, but also how supply and demand is more balanced. With more homes available to rent and less competition between tenants, landlords need to position rents correctly for the current market to secure a tenant.

“As market conditions rebalance, homes are taking longer to let. The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods. Around 26% of rental listings are now reduced in price while advertised, the highest proportion recorded since Rightmove began tracking this metric in 2012.

“Ahead of the Renters’ Rights Act coming into force, the data doesn’t suggest a single or immediate reaction from landlords. Instead, behaviour appears more cautious and considered, with many focusing on long-term tenancies, pricing and avoiding void periods in a more balanced market.

“It’s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the market at a later stage.”