UK private rents averaged £1,388 per month in June 2026, according to ONS figures, with England at £1,446 and Wales at £843. Annual growth stood at 3.3%, a marked deceleration from the 10%-plus rises that defined 2022 and 2023. For anyone renting or letting property right now, that shift matters, and the reasons behind it are worth understanding properly.
Why Rent Growth Has Slowed
Three things have combined to take the heat out of the market. First, more rental stock has appeared. Some landlords who tried to sell in a sluggish sales market could not achieve the price they wanted, so they listed for rent instead. More properties chasing the same pool of tenants has given renters a little more choice than they had two years ago.
Second, tenants have simply hit an affordability ceiling. In many towns and cities, rents rose so fast that they now absorb a very large share of take-home pay, leaving little headroom for further increases without tenants choosing to move, share, or move back with family. The market has self-corrected to a degree.
Third, the Renters' Rights Act has had a psychological effect on both sides. Landlords are aware that the new rules place tighter limits on how and when they can raise rents, so some have been more cautious about pushing for large increases ahead of enforcement. Tenants, meanwhile, are becoming more aware that they have formal routes to challenge increases they consider unfair.
For Tenants: Your Rights Under the New Rules
The Renters' Rights Act introduces a statutory annual rent increase process under Section 13. In practice, this means your landlord can only raise your rent once every 12 months, and they must give you proper written notice using a prescribed form. The notice period is two months for most tenancies.
If you believe the proposed increase is above the open market rate for a comparable property in your area, you have the right to refer it to the First-tier Tribunal (Property Chamber in England). You must make that referral before the proposed increase takes effect, so act promptly once you receive notice. The tribunal will assess what a fair market rent would be and set a figure. It will not automatically side with you, but it does provide an independent check on unreasonable increases.
To build a case, gather evidence: advertised rents for similar properties nearby, ideally from property portals, local letting agents, or both. Keep records dated around the time you receive the notice. If you are unsure about the process, speak to a local housing adviser or contact our team for a steer on comparable rents in your area.
For Landlords: Timing and Calculation Matter More Now
The one-increase-per-year rule means you no longer have the option to make small corrections mid-tenancy if costs rise unexpectedly. Your annual review becomes your single opportunity, so the timing and the figure you choose carry more weight than they used to.
Think carefully about when in the year your review falls. If your buy-to-let mortgage is on a fixed rate that expires in the next 12 months, factor in the likely new rate before you set the rent. Similarly, if you are planning EPC improvement works, you will want to account for any period when the property may be less lettable or when your costs will spike.
A sustainable rent is one that covers your actual outgoings with a reasonable margin, while remaining within what a good tenant can afford. Work through the numbers: mortgage interest or capital costs, landlord insurance (which has risen sharply in recent years), letting agent fees if applicable, maintenance reserve, and any planned compliance spend. Divide that by 12 and you have a floor. Check that figure against current market rents for comparable properties. If your floor is above market, you need to review your cost structure or your yield expectations.
Decent Homes Standard: Plan Ahead
The government intends to extend the Decent Homes Standard to the private rented sector, though the precise timeline and cost thresholds are still being confirmed. What is already clear is that some older properties will require meaningful investment in heating systems, insulation, or general repair to comply. If you own property built before 1990 or with an EPC rating of D or below, start getting quotes now. Retrofitting costs are not falling, and leaving it to the last moment will mean competing for tradespeople at peak demand. Build a rough figure into your long-term yield calculations so that any future rent review reflects real costs rather than wishful thinking.
A Practical Takeaway
The rental market is still moving, just more steadily than it was. For tenants, the new statutory process gives you a genuine route to challenge an increase that feels out of step with the local market, but you need to act within the notice period. For landlords, the annual review is now your one chance to get the rent right, so do the maths properly, check comparable evidence, and factor in costs that are still coming down the track. If you want a current view of rents in your area, speak to our lettings team who can give you an honest local picture.
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