Renters Rights Act: Fewer Rent Rises, but Bigger Ones

Priya Kapoor

Priya Kapoor covers regulation and compliance for the Property Filter News Desk. She tracks every legislative change that affects landlords and investors in England and Wales.

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Published on

THE PROPERTY FILTER TAKE

  • The Renters' Rights Act came into force on 1 May 2026. In the first month, the number of rent increases fell 23% year-on-year, according to Hamptons' analysis of Connells Group data.

  • Fewer landlords are raising rents, but when they do the increases are larger - Scotland's experience of periodic tenancies since 2017 signals what England can expect.

  • You may wish to review your rental pricing strategy with a letting agent now, rather than waiting until a Section 13 notice is overdue.

The Renters' Rights Act came into force on 1 May 2026. In its first month, the number of sitting tenants receiving a rent increase dropped 23% compared to May 2025, according to Hamptons' analysis of Connells Group data covering a wide range of letting agency brands across Great Britain. The Act has changed the rules - but landlords who do raise rents are raising them by more.

What the Data Shows

The fall was sharp. The number of rent increases in May 2026 was also 16% below the five-year May average for 2021 to 2025, according to Hamptons (Letting Agent Today, June 2026).

Importantly, landlords did not front-load increases before the Act took effect. Between January and April 2026, rent increases ran just 3% below the equivalent period in 2025 - a flat trend, not a last-minute rush (Hamptons/Letting Agent Today, June 2026).

If May's pace holds for the rest of 2026, Hamptons estimates 31% of tenants would see their rent rise within any 12-month window. That compares with 40% in the 12 months to May 2025, and a peak of 50% in the 12 months to January 2024 (Hamptons/Letting Agent Today, June 2026).

The mechanism behind this shift is the Section 13 notice - the formal two-months' written notice a landlord must now serve to raise rent on an existing periodic tenancy (a rolling agreement with no fixed end date). Landlords can only do this once per year, and only up to market rate. Tenants who dispute the increase can refer it to the First-Tier Tribunal, which assesses comparable local rents to set the correct figure.

You can explore how rent levels in your area compare using Property Filter's free resources hub, which includes tools to assess local market conditions.

Scotland Points the Way

Scotland introduced periodic tenancies in 2017. Its experience gives the clearest signal of where England is heading.

Where landlords do raise rents, the increases are larger. In May 2026, Scotland recorded an average rent rise of 7.7% - the highest of any region in Great Britain (Hamptons/Letting Agent Today, June 2026). After Scotland capped rent increases at 3% per year until April 2024, the cap's removal triggered a sharp return to market rates. That pattern - suppressed frequency, amplified size - is now the likely trajectory for England.

Landlords considering their long-term strategy can review how different property investment approaches hold up under a framework of less frequent but larger rent adjustments.

What to Watch in the Coming Months

Regional data adds context. Average rents in the South East reached £1,500 per month in May 2026 - a 2% annual rise and the first time any English region outside London has crossed that threshold (Hamptons/Letting Agent Today, June 2026).

The Act limits rent increases to once per 12 months per tenancy. That means a landlord who missed the opportunity in May faces a full year before the next window. Using the stress test calculator can help assess whether your current rent covers costs and mortgage payments at today's rates, and whether the gap widens under a delayed-increase scenario.

Key takeaways

  • Rent increases in May 2026 fell 23% year-on-year and 16% below the five-year average, per Hamptons/Connells Group data

  • Scotland's experience of periodic tenancies since 2017 shows the pattern: fewer increases, but larger ones when they arrive

  • Landlords can only raise rent once per year via a Section 13 notice with two months' notice to the tenant

  • You may wish to model current and projected rental income against your mortgage costs before your next review window

The Renters' Rights Act came into force on 1 May 2026. In its first month, the number of sitting tenants receiving a rent increase dropped 23% compared to May 2025, according to Hamptons' analysis of Connells Group data covering a wide range of letting agency brands across Great Britain. The Act has changed the rules - but landlords who do raise rents are raising them by more.

What the Data Shows

The fall was sharp. The number of rent increases in May 2026 was also 16% below the five-year May average for 2021 to 2025, according to Hamptons (Letting Agent Today, June 2026).

Importantly, landlords did not front-load increases before the Act took effect. Between January and April 2026, rent increases ran just 3% below the equivalent period in 2025 - a flat trend, not a last-minute rush (Hamptons/Letting Agent Today, June 2026).

If May's pace holds for the rest of 2026, Hamptons estimates 31% of tenants would see their rent rise within any 12-month window. That compares with 40% in the 12 months to May 2025, and a peak of 50% in the 12 months to January 2024 (Hamptons/Letting Agent Today, June 2026).

The mechanism behind this shift is the Section 13 notice - the formal two-months' written notice a landlord must now serve to raise rent on an existing periodic tenancy (a rolling agreement with no fixed end date). Landlords can only do this once per year, and only up to market rate. Tenants who dispute the increase can refer it to the First-Tier Tribunal, which assesses comparable local rents to set the correct figure.

You can explore how rent levels in your area compare using Property Filter's free resources hub, which includes tools to assess local market conditions.

Scotland Points the Way

Scotland introduced periodic tenancies in 2017. Its experience gives the clearest signal of where England is heading.

Where landlords do raise rents, the increases are larger. In May 2026, Scotland recorded an average rent rise of 7.7% - the highest of any region in Great Britain (Hamptons/Letting Agent Today, June 2026). After Scotland capped rent increases at 3% per year until April 2024, the cap's removal triggered a sharp return to market rates. That pattern - suppressed frequency, amplified size - is now the likely trajectory for England.

Landlords considering their long-term strategy can review how different property investment approaches hold up under a framework of less frequent but larger rent adjustments.

What to Watch in the Coming Months

Regional data adds context. Average rents in the South East reached £1,500 per month in May 2026 - a 2% annual rise and the first time any English region outside London has crossed that threshold (Hamptons/Letting Agent Today, June 2026).

The Act limits rent increases to once per 12 months per tenancy. That means a landlord who missed the opportunity in May faces a full year before the next window. Using the stress test calculator can help assess whether your current rent covers costs and mortgage payments at today's rates, and whether the gap widens under a delayed-increase scenario.

Key takeaways

  • Rent increases in May 2026 fell 23% year-on-year and 16% below the five-year average, per Hamptons/Connells Group data

  • Scotland's experience of periodic tenancies since 2017 shows the pattern: fewer increases, but larger ones when they arrive

  • Landlords can only raise rent once per year via a Section 13 notice with two months' notice to the tenant

  • You may wish to model current and projected rental income against your mortgage costs before your next review window

Frequently asked questions

Frequently asked questions

When did the Renters' Rights Act come into force?

The Act came into force on 1 May 2026, converting all existing assured shorthold tenancies in England into periodic tenancies from that date.

How often can a landlord raise rent under the Renters' Rights Act?

Landlords can raise rent once per 12-month period per tenancy. They must serve a Section 13 notice with at least two months' written notice, and the increase cannot exceed the local market rate.

What happens if a tenant disputes a rent increase?

The tenant can refer the increase to the First-Tier Tribunal (FTT). The FTT will assess comparable rents for similar properties in the area and set the permitted rent accordingly.

What does the Scotland comparison mean for English landlords?

Scotland introduced periodic tenancies in 2017. The data shows landlords raised rents less frequently but by larger amounts when they did. England is likely to follow the same pattern as landlords consolidate increases into single annual adjustments.

What is a Section 13 notice?

A Section 13 notice is the statutory document a landlord must serve to legally increase rent on a periodic tenancy. It requires at least two months' notice and must state the proposed new rent.

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult a qualified professional before making investment decisions.