Average rental growth in England moderated in the first quarter of 2026, contradicting expectations that landlords would implement significant rent increases ahead of new legislation limiting their flexibility.
Analysis of Office for National Statistics data by inspection software platform Inventory Base shows that average rents rose by 0.77% to £1,434 per month in the three months to March 2026, slightly below the increase recorded during the same period in 2025.
The Renters’ Rights Act, which came into effect on 1st May 2026, restricts landlords to one rent increase per year. Industry observers had anticipated landlords would front-load rent rises before the deadline, but the data suggests only around a quarter of landlords adopted this approach.
Regional variations
Nearly three-quarters of local authorities, at 73.1%, recorded slower rental growth compared to the previous year. Regional patterns varied significantly across England’s nine regions.
In the North East, rents increased by 0.65% in the first quarter of 2026, compared with 2.11% during the same period in 2025. The East Midlands saw a similar pattern, with growth of 0.44% versus 1.39% a year earlier.
Only three regions experienced faster rental growth year-on-year. London recorded a 1.20% increase compared to 0.63% in 2025, whilst Yorkshire and the Humber and the South West also saw accelerated growth. The findings align with broader challenges facing the lettings sector as regulatory changes reshape the market.
Market implications
Siân Hemming-Metcalfe, Operations Director at Inventory Base, said the figures indicate a measured market response. “While there had been widespread concern that landlords would rush to increase rents ahead of the Renters’ Rights Act, these figures suggest a far more measured response across the market,” she stated.
Hemming-Metcalfe added that the legislation may influence landlord pricing strategies going forward. “In the longer term, the legislation should encourage greater stability in the private rental sector, but it may also lead to more decisive pricing at the start of a tenancy, as landlords look to future-proof against more limited flexibility,” she said.
The rental market data emerges as affordability pressures continue to affect housing markets across multiple sectors. The moderate rental growth may provide some relief to tenants facing cost-of-living pressures, though regional disparities remain significant.
The data suggests the private rental sector has adapted to regulatory changes with less disruption than some market participants predicted, though the longer-term impact of the Renters’ Rights Act on landlord behaviour and market dynamics remains to be seen.
