UK rents fall again as market cools ahead of Renters’ Rights Act

UK rents slipped for a second month in a row in January, adding to signs that rapid growth may finally be running out of steam as the Renters’ Rights Act moves closer.

The latest HomeLet Rental Index shows the average UK rent eased to £1,302 in January 2026, down 1.1% month-on-month from £1,317 in December.

Despite the dip, rents remain higher than a year earlier, standing 2.4% above January 2025’s figure of £1,271.

Outside Greater London, average rents fell by just 0.5% over the month, from £1,124 to £1,118.

That still leaves rents 2.1% higher than a year ago, compared with £1,095 in January 2025.

Rent growth is slowing

HomeLet’s head of sales, Mike Dawson, said: “This month’s Rental Index figures suggest a rental market that’s easing rather than correcting.

“With the Renters’ Rights Act approaching, agents will be under more pressure to demonstrate value to landlords in a time of change for the rental sector.”

He added: “Landlords are also looking for greater certainty around income in preparation for the new regulations.”

The firm says landlords will increasingly need to secure the right tenants by using advanced referencing.

Most rent falls are small

London continues to see the sharpest softening with average rents in the capital dropping to £2,078 in January.

That’s down 2.4% on the previous month and only 2.6% higher than a year earlier.

The slowdown means London is now recording the weakest annual growth of any UK region.

While rents nationally have now fallen for two consecutive months, most regions are experiencing small monthly adjustments.

This, the firm says, reflects demand remaining broadly resilient even as affordability pressures bite.