UK Rents Surge as Experts Warn of ‘Unintended Consequences’ from Renters’ Rights Act

Rising private rental costs across the UK are being fueled by the structural fallout of new housing legislation, according to industry experts. The latest figures from the Office for National Statistics (ONS) reveal that the average monthly private rent hit £1,393 in July, marking a 3.7% increase—or approximately £50 more—compared to the same period last year.

While the government continues to pursue its housing reform agenda, analysts argue that the legislation is inadvertently exacerbating the very problem it seeks to solve.

The Cost of Legislative Friction

Tom Bill, head of UK residential research at Knight Frank, suggests that the market is struggling to absorb the impact of the new regulatory landscape.

“Rents are being pushed higher as the unintended consequences of the Renters’ Rights Act play out,” Bill stated. “Some landlords have left the sector, which has reduced supply, while others have increased asking rents to reflect the additional financial risks they face. The consequences may be unintended, but they were not unexpected, and a policy designed to tip the balance of power towards tenants is adding to the financial pressures they already endure.”

Industry veterans echo this sentiment. Jeremy Leaf, a north London estate agent and former RICS residential chairman, noted that the data aligns with observations on the ground.

“Demand remains strong, particularly for higher-end houses among those returning from holiday seeking accommodation before the new school term,” Leaf explained. “Rents have held firm, invariably supported by a shortage of supply. Some landlords are still selling due to the Act and ongoing tax concerns, and those staying are insisting on better quality references, just in case possession is required.”

Leaf added that the market is also seeing shifts in tenant behavior, with more activity prompted by occupants taking advantage of new rules regarding fixed-term arrangements.

A Geographic Snapshot of Rental Inflation

The rental crisis is being felt unevenly across the nations of the UK, though the upward trend remains consistent:

• England: Average rents rose by 3.8% year-on-year to £1,451.
• Wales: Recorded a sharper increase of 4.5%, with average rents at £843.
• Scotland: Experienced a more modest rise of 1.7%, reaching £1,016.
• Northern Ireland: Saw rents climb 2.3% to £875 in the 12 months to May 2026, representing the region’s lowest annual rental inflation rate in over five years.

Within England, regional disparities remain stark. The North East is currently experiencing the most aggressive rental growth at 6.3%, whereas the South East has seen the lowest growth at 2.9%.

Despite the pressure on smaller markets, London remains the most expensive place to rent in the country. The capital’s average monthly cost of £2,317 stands in sharp contrast to the more affordable North East, where tenants pay an average of £783 per month.

As supply constraints continue to clash with high demand, the debate over whether housing policy is helping or hindering affordability is set to intensify as tenants across the UK face continued upward pressure on their monthly outgoings.