Landlords are increasing asking rents in response to the Renters’ Rights Act’s ban on competitive bidding, according to data from Chestertons. The trend represents a strategic shift in pricing behaviour rather than a direct response to market demand.
The lettings agency reports that landlords are setting asking rents higher than their target price, anticipating that tenants will negotiate downwards to a level the landlord originally intended to achieve. This practice emerged after the Act prohibited letting agents and landlords from encouraging competitive bidding between prospective tenants.
Market data confirms pricing trend
The strategy is now reflected in national rental data. Rightmove’s Rental Trends Tracker shows asking rents increased by 2.9% year-on-year during the second quarter of 2026, up from 1.4% in the previous three months. This marks the strongest rate of growth in two years.
London’s rental growth outpaced the rest of Britain at 2.3% for the first time since July-September 2023. The capital’s rental market has shown resilience despite ongoing affordability concerns across the UK housing sector.
Activity levels fluctuate post-legislation
Chestertons observed a surge in activity immediately after the Renters’ Rights Act passed in May, which the company attributed to increased market certainty. However, activity levels declined in July before recovering in early August.
Katinka Hill, head of lettings at Chestertons, said: “Activity seen immediately after the legislation was introduced in May eased off in July. However, in the first 10 days of August our branches have seen applicant registrations up 18% year-on-year, which is in line with the seasonal summer uptick we would expect at this time of year.”
Supply constraints support pricing
The pricing trend has been reinforced by reduced supply levels as landlords exit the market or reduce their portfolios. This has coincided with rising tenant demand, creating conditions that support higher asking rents. The shift in landlord behaviour comes as the sector faces increased regulatory scrutiny across multiple areas.
Chestertons noted that landlords have become more confident in their pricing strategies since June, with the practice continuing into July at lower levels as market participants adjust to the new regulatory environment.
