Rents stagnate as Renters’ Rights Act uncertainty bites

The UK’s rents slipped in December to leave annual growth muted as landlords tread carefully ahead of May’s implementation of the Renters’ Rights Act.

According to the latest HomeLet Rental Index, average rents fell to £1,317 last month, down 1.5% from November.

Despite the monthly dip, prices remain 2.6% higher than a year earlier.

Excluding Greater London, rents were slightly more stable with the average at £1,124, a 0.8% monthly drop from £1,133, and 2.2% higher than a year ago.

In London, rents were £68 (3.1%) cheaper than in November and 2.8% higher than in December 2024 with the average rent in December was £2,129.

Landlords worry about RRA impact

The firm’s head of legal, Will Eastman, said: “December’s rental index figures represent a market that is pausing for breath rather than moving decisively in either direction.

“We’re seeing signs of stagnation, with small dips in some regions, but no clear trend of sustained increases or decreases.”

He added: “A major driver of the uncertainty is the Renters’ Rights Act, as landlords are trying to understand the full impact of the upcoming changes in May.

“Many landlords are considering higher rents on new tenancies due to the new legislation around rent increases and bidding wars, but with laws around evictions also changing, concerns over arrears mean they’re wary of pricing properties beyond tenants’ reach.”

NI and North East saw rises

December’s figures from HomeLet show rents edging lower across most regions with Greater London recording the sharpest monthly drop at 3.1%.

Average rents there are £2,129, though prices were still up 2.8% annually.

Northern Ireland and the North East stood out for the strongest year on year growth, rising 9.3% and 6.6% respectively.

The South East and North West were the only areas to see rents fall compared with December 2024.

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