The UK rental market has turned a corner. Average rents reached £1,311 per month in March 2026, up 0.8% from February - the first monthly increase since October 2025, according to the HomeLet Rental Index published 1 April 2026. Annual growth sits at 1.8%, suggesting the market is finding a more sustainable rhythm after two years of sharp rises.
What the March Numbers Actually Show
The headline figure masks some important regional variation. Outside London, rents edged up by just £5 to £1,125 per month, a 0.4% monthly gain and 1.6% year-on-year increase. In the capital, the rebound was more pronounced: London rents climbed 1.5% month-on-month to £2,097, snapping four consecutive monthly falls, and sitting 1.7% above March 2025.
Rents rose in eight of the twelve regions tracked and fell in four. The strongest monthly gains came in Greater London (+1.5%), Northern Ireland (+1.3%), and the South West (+1.1%). On an annual basis, Northern Ireland leads the country at +4.9% year-on-year, followed by Scotland at +3.6% and the North East at +3.2%. At the other end, East of England rents are actually 1.0% lower than a year ago - a signal of localised demand softening worth watching.
For landlords assessing yield (annual rent divided by property value) across different regions, these diverging trends matter. A portfolio weighted towards Northern Ireland or Scotland is performing very differently right now from one concentrated in the East of England. You can check how regional rent levels affect your numbers using our free stress test calculator.
What Tenants Are Experiencing Right Now
Kate Wenham, customer development team leader at HomeLet and Let Alliance, put it plainly: "We're still experiencing a market where tenants must be conscious of price. Affordability pressures haven't eased, but both landlords and renters appear to be adjusting to a new normal, with smaller, more measured rent increases rather than the sharp rises we've seen in the past."
That shift matters practically. Smaller increases are less likely to trigger a search for cheaper alternatives, which reduces void periods - one of the biggest drains on BTL (buy-to-let) returns. A month's void on a £1,125 property wipes out roughly 8.3% of annual income instantly. Pricing with your tenant's affordability in mind is not just considerate; it is commercially sound.
Wenham also flagged the approaching May period as a reference point for agents and landlords, urging a focus on "sustainable tenancies rather than stretching affordability to breaking point." The direction of travel in regulation - including the Renters' Rights Act - reinforces that framing. Tenants have greater security of tenure than before, which makes retaining good tenants even more valuable. You can read more about adapting your approach in our property investment strategies guide.
Where Rents Are Heading
March's data shows that rents are still 2.5% below October 2025's peak nationally. A return to that level at the current pace of growth is not imminent - but the direction has shifted. HomeLet's index suggests a market stabilising rather than correcting sharply downward, which gives landlords more predictability when assessing forward cashflow.
Regional divergence is the story within the story. If you are evaluating where to buy or how to price renewals, local data matters far more than the national average. Our LHA rates map lets you check Local Housing Allowance (LHA) rates and affordability ceilings by postcode - useful context whether your tenant is on benefits or not, as LHA rates often act as a de facto market floor in many areas.
For a broader view of how to structure your lettings strategy in the current environment, our free resources hub covers demand analysis, void reduction, and tenant retention.
Key takeaways
UK average rent hit £1,311 in March 2026, up 0.8% month-on-month - the first rise since October 2025
London rebounded most sharply, up 1.5% to £2,097 after four consecutive monthly falls
Northern Ireland leads on annual growth at +4.9% year-on-year; East of England is the only region in negative territory at -1.0%
Rents remain 2.5% below October 2025's peak, suggesting the market is stabilising rather than surging
Smaller, steadier rent rises reduce void risk - a one-month void on an average non-London property erases roughly 8.5% of annual rental income
