Landlords appear to be raising rents less often since the Renters’ Rights Act came into force, in an early sign that the new rules may be changing behaviour across England’s private rented sector.

New figures reported by The Times, based on analysis from estate agency Hamptons, suggest that the number of rental properties where the rent increased in May was 23% lower than in the same month last year. If that pattern were to continue, around 31% of renters would face a rent rise this year, compared with 40% last year and 50% in 2023.

The figures provide one of the first indications of how landlords are responding to the Renters’ Rights Act, which took effect on 1 May 2026 and represents the biggest overhaul of private renting in England for decades.

For tenants, the early data may suggest greater stability. For landlords, it reflects a more cautious environment where rent increases are more formal, more limited in frequency and more open to challenge.

However, the market picture remains mixed. While fewer tenants may face rent rises, those who do could still see significant increases. Wider rental supply remains tight, mortgage costs remain elevated, and some landlords continue to warn that the reforms could encourage smaller investors to leave the sector.

What has changed?

The Renters’ Rights Act has changed the legal framework for most private tenancies in England.

Assured shorthold tenancies have been replaced by assured periodic tenancies, which run on a rolling basis rather than having a fixed end date. Section 21 “no-fault” evictions have been abolished, meaning landlords must now rely on legal grounds for possession if they want to regain a property.

The Act has also changed the rules around rent increases. Landlords can no longer rely on informal increases or rent review clauses in the same way. Instead, most rent increases must follow the Section 13 process, using the correct form and giving tenants at least two months’ notice. Rent can generally only be increased once a year, and tenants can challenge proposed increases that are above the open market rent.

There is no absolute rent cap. Landlords can still seek market-level rents. But the process is now more structured, and tenants have clearer rights to challenge increases they believe are excessive.

That procedural change appears to be affecting landlord behaviour.

Fewer rent increases, but possibly larger ones

Hamptons’ analysis suggests that landlords were less likely to increase rents in May, the first month after the reforms came into effect. The data also showed little evidence of a major rush to raise rents before the Act began, with rent increases between January and April 2026 slightly lower than in the same period last year.

This is important because there had been concern that landlords would push through increases before the new rules took effect. So far, the available data does not suggest a widespread pre-reform surge.

But the picture is not entirely straightforward. Among tenants who did see their rent change in May, the average increase in England was reported at 5.4%. In Scotland, where landlords have been operating under a more formal system for longer, the comparable increase was 7.7%.

That comparison may be significant. It suggests that the new English regime could lead to fewer increases overall, but potentially larger increases when they do happen.

For tenants, that creates a mixed outcome. A household may benefit from not seeing annual rises as frequently, but when a rise does arrive, it may be material. For landlords, fewer opportunities to adjust rents may encourage more careful pricing decisions when increases are made.

A calmer rental market, but not an easy one

The early signs of fewer rent increases also come against a backdrop of slowing rental growth.

Official figures from the Office for National Statistics show that average UK monthly private rents rose by 3.5% in the 12 months to April 2026, reaching £1,381. In England, average rents rose by 3.5% to £1,438. Wales saw stronger annual growth of 4.9%, while Scotland increased by 2.0%.

Those figures are much lower than the peak levels seen during the sharp post-pandemic rental squeeze, but they still represent rising costs for tenants.

Private rental inflation was highest in the North East, at 6.5%, and lowest in London, at 2.0%. That regional variation shows why the national picture can be misleading. Some local markets are cooling, while others remain under significant pressure.

Zoopla’s June rental market report also pointed to a more balanced market than in recent years, with average UK rents for new lets rising by 2.1%. But it warned that rental supply remains 20% to 30% below pre-pandemic levels in every region, and that three-quarters of rental areas are still seeing rents rise faster than the national average.

In other words, rent growth has slowed, but the supply problem has not disappeared.

Tenants gain stability

For tenants, the Renters’ Rights Act is intended to provide greater security and reduce the imbalance of power in the private rented sector.

The end of Section 21 means tenants can no longer be evicted without a reason. Rolling tenancies mean renters are not automatically exposed to renegotiation at the end of a fixed term. The new rent increase process gives tenants clearer notice and a route to challenge increases that exceed market rent.

Supporters argue that this should reduce the fear of sudden eviction or unaffordable rent hikes, particularly for families, older renters and those who have lived in the same home for several years.

The Act also sits alongside wider reforms, including restrictions on rental bidding, stronger rights around pets, protections against discrimination for tenants with children or those receiving benefits, and increased local authority enforcement powers.

From a tenant’s perspective, fewer rent increases in May may be evidence that the reforms are beginning to work as intended.

Landlords face a more complex market

Landlords, however, are operating in a more demanding environment.

The new rules come at a time when many buy-to-let investors are already dealing with higher mortgage costs, tax changes, insurance increases, maintenance costs and stricter regulatory expectations. For highly leveraged landlords, the gap between rental income and finance costs may already be tight.

Some landlords argue that limiting rent increases to once a year, while still allowing tenants to challenge rises, reduces flexibility. If costs rise sharply, landlords may feel they have fewer ways to respond quickly. Others may respond by setting higher starting rents for new tenancies to reduce the risk of being caught out later.

There is also concern that smaller landlords may decide the sector is no longer attractive. If more landlords sell up and rental supply falls further, tenants could face fewer available homes and stronger competition for properties.

This is the central tension in the policy. Stronger tenant protections may improve security for existing renters, but if the reforms reduce supply, future renters could face higher entry costs and less choice.

No clear evidence yet of a landlord exodus

The early data does not yet prove that landlords are leaving the market because of the Act. The private rented sector was already under pressure before the reforms came into force.

Higher interest rates have affected buy-to-let returns. Some landlords have been selling because mortgage refinancing has become more expensive. Others have been affected by tax changes introduced in earlier years, changes to energy efficiency expectations, and the general burden of compliance.

It is therefore difficult to isolate the impact of the Renters’ Rights Act from wider economic pressures.

Market data also suggests a more nuanced picture. Rental demand has cooled from the extreme levels seen in 2021 and 2022. Zoopla reported an average of 5.6 enquiries per rental home in May 2026, down from a peak of 15.5 in 2022, although still above pre-pandemic norms. Rightmove has also reported that advertised rents outside London were flat in the first quarter of 2026, the first time since 2017 that rents did not rise at the start of the year.

That suggests the market is adjusting to weaker demand as well as stronger regulation.

The business impact

The Renters’ Rights Act is not only a housing story. It is also a business story.

Landlords must now treat rent-setting, tenancy management and compliance more formally. Agents may see increased demand for professional management as smaller landlords seek help navigating the new rules. Legal advisers, rent guarantee providers and compliance services may also benefit from a more regulated environment.

For institutional investors, the reforms could create opportunity. Larger landlords and build-to-rent operators may be better placed to absorb compliance costs, manage processes professionally and offer longer-term certainty. If smaller landlords exit, larger operators may gain market share.

However, institutional investment alone is unlikely to solve the supply problem quickly. New rental homes take time to build, and many build-to-rent schemes remain concentrated in particular cities and price brackets.

For mortgage lenders, letting agents and property investors, the key question is whether the reforms produce a more stable rental market or a smaller one.

What happens next?

The May figures are only an early snapshot. It is too soon to conclude that the Renters’ Rights Act will permanently reduce rent increases or significantly reshape landlord behaviour.

Several questions remain.

Will landlords who skipped increases in May return later in the year once they are more familiar with the new process?

Will more tenants challenge increases at tribunal?

Will landlords set higher initial rents when properties are re-let?

Will smaller landlords sell up, and if so, will those homes remain in the rental sector or move into owner-occupation?

Will the reforms lead to fewer rent increases but larger annual jumps?

These questions will become clearer over the next year as landlords, agents and tenants adjust to the new regime.

A cautious early signal

The early evidence suggests that the Renters’ Rights Act has had an immediate behavioural effect. Landlords appear to be raising rents less often, and tenants may benefit from fewer routine increases.

But the wider affordability challenge remains.

Rents are still rising in most parts of the country. Supply remains below pre-pandemic levels. Mortgage costs continue to influence landlord decisions. And the reforms do not, by themselves, create more homes.

For tenants, the Act may provide greater security and more predictable rights. For landlords, it creates a more formal and less flexible operating environment. For the market as a whole, the outcome will depend on whether greater stability can be achieved without reducing supply.

The first month of data suggests the reforms are already changing behaviour.

Whether that change ultimately helps renters in the long term will depend not only on the law, but on whether enough homes remain available to rent.