UK Renters’ Rights Act Triggers Higher Asking Rents as Tenants Search for Better Value
UK landlords and tenants adjust to new rental regulations.
The UK’s Renters’ Rights Act is prompting changes in landlord pricing strategies and tenant property-search behaviour, with more landlords raising initial asking rents as renters compare more properties in search of better value. Research by London estate agency Chestertons, reported by BusinessDay on 11 October 2026, indicates that the number of landlords increasing their initial marketing prices rose by 36% year on year, highlighting how the rental market is adjusting to new regulations.
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The changes come as the legislation strengthens tenant protections, restricts rental bidding and introduces a more structured system for rent increases and tenancy termination. However, the latest market findings suggest that regulatory changes are influencing how landlords advertise properties and how prospective tenants navigate the rental market.
Landlords Adjust Asking Rents Under New Rules
According to Chestertons’ quarterly research, more than a third of landlords have increased their initial asking prices as they respond to the new regulatory framework.
The agency attributed the trend partly to restrictions that prevent landlords and letting agents from inviting or accepting offers above an advertised rent. Under the new rules, landlords must publish an asking price and cannot accept a higher offer from a prospective tenant.
Katinka Hill, head of lettings at Chestertons, said landlords were increasing their initial marketing prices to create room for manoeuvre because they could no longer accept offers above the advertised rent.
The findings indicate that some property owners are changing their pricing strategies in response to the restrictions. Rather than allowing prospective tenants to bid above an advertised price, landlords are setting their initial prices with the new rules in mind.
The figures do not establish that the legislation alone caused rental prices to rise. However, they show that a significant proportion of landlords are reassessing how they market their properties following the introduction of the new requirements.
Tenants Expand Property Searches to Find Better Value
The regulatory changes are also coinciding with a shift in tenant behaviour, as prospective renters conduct more extensive searches before committing to a property.
Chestertons’ research found that property portal enquiries were 1.99 times the number of tenant applications, compared with an average ratio of 1.61 over the preceding six months.
The higher ratio suggests that prospective tenants are making enquiries about more properties before submitting applications. This indicates a greater emphasis on comparing available options and assessing value in a market where asking prices remain a key consideration.
Hill said prospective tenants were contacting agents about more properties they encountered online as they searched for value before deciding to move.
The findings point to a more deliberate search process among renters. Rather than proceeding quickly from an initial enquiry to an application, tenants appear to be considering a wider range of properties before making their decisions.
Despite this change, demand for rental accommodation remains strong in London. Chestertons reported that well-presented properties continue to attract tenants and let quickly, particularly during the summer period.
What the Renters’ Rights Act Changes
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025, with its first phase of major changes taking effect on 1 May 2026. The legislation applies to England and represents a substantial reform of the private rented sector.
One of its central provisions is the abolition of Section 21 no-fault evictions. Landlords can no longer use this procedure to recover possession without giving a legally recognised reason. Instead, they must rely on the applicable statutory grounds and follow the required notice and court procedures where necessary.
The Act also replaces most assured shorthold tenancies with assured periodic tenancies. These arrangements operate on a rolling basis rather than ending on a fixed date, providing tenants with greater flexibility over how long they remain in a property.
The legislation introduces additional controls over rent increases. Landlords can generally increase rent only once a year through the prescribed procedure and must give tenants at least two months’ notice. Tenants can challenge proposed increases they consider higher than the open-market rent through the relevant tribunal process.
The rules also prohibit rental bidding, restrict rent payments in advance and strengthen protections against discrimination towards prospective tenants who receive benefits or have children. Tenants also gain stronger protections when requesting permission to keep pets.
Together, these provisions are designed to improve rental security, increase transparency and establish clearer rules governing the relationship between landlords and tenants.
Rental Supply Constraints Continue to Shape the Market
The changes are unfolding against persistent supply constraints in London’s rental market, where demand continues to exceed available accommodation in many areas.
According to Chestertons, these conditions continue to support rental demand even as tenants become more selective in their searches. Properties that are well presented and competitively positioned remain capable of attracting interest and securing tenants quickly.
The interaction between regulation and market conditions is important. While the Act establishes clearer rules for setting advertised rents and managing tenancies, the availability of suitable properties and the prices landlords charge continue to influence renters’ choices.
The latest findings also highlight the distinction between legal protections and affordability. Greater security of tenure can reduce the risk of arbitrary eviction, but it does not automatically make accommodation more affordable or increase the number of homes available to rent.
Implications for Landlords and Property Investors
For landlords, the new framework places greater emphasis on setting an appropriate asking price from the outset, complying with statutory procedures and understanding the grounds on which a tenancy can legally end.
The restrictions on rental bidding mean landlords must establish an advertised price that reflects their expectations, while the rules governing rent increases require them to follow the prescribed process rather than relying on informal arrangements.
For property investors, the emerging response highlights the importance of understanding how regulatory requirements interact with local rental demand, property presentation and pricing decisions. Changes in the rules can influence letting practices, but the available research does not establish whether the new legislation will produce sustained increases in rents or materially change investment returns.
Tenants, meanwhile, face a market in which stronger legal protections coexist with the need to compare prices and assess the value of available properties. The rise in enquiries relative to applications suggests that renters are exploring more options before making commitments.
Outlook
The UK rental market is continuing to adjust to the Renters’ Rights Act, with landlords revising asking prices and tenants broadening their searches for suitable accommodation. Chestertons’ findings capture the early market response, although further evidence will be needed to determine whether these behavioural changes persist as landlords, tenants and letting agents become more familiar with the legislation.
The longer-term outcome will depend not only on how effectively the new rules are implemented, but also on rental supply, market demand and the affordability of available homes. For policymakers and property professionals, the findings underline the importance of assessing tenant protection alongside the market conditions that determine access to housing.
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