Renters get some relief, while landlords appear to be taking a wait-and-see approach ahead of new legislation
Rents outside London remained unchanged in the first quarter of the year, the first time since 2017 they’ve stayed flat in the first quarter as momentum swung slightly away from landlords.
New data from property website Rightmove showed that rents held steady at £1,370 in Q1, reflecting pressure on landlords to slash asking prices outside the capital.
In London, advertised rents ticked upwards by 0.7% on average, the company said, jumping to £2,736 per calendar month – and average rents excluding London remain higher than they were the same time last year.
The number of available homes to rent improved by 3% in the first quarter compared with the same time last year, marking the highest first-quarter level since 2021.
The sluggish start to the year for rental price growth was mainly spurred by lower tenant demand and a greater choice of homes, Rightmove said, as affordability pressures persist for tenants.
The new data arrives ahead of the introduction of the Renters’ Rights Act, scheduled to come into effect on May 1.
That legislation – which advocates say will protect renters from unscrupulous landlords and improve tenant rights – has received a mixed reaction in the mortgage industry, with some mortgage professionals applauding the intent of the law but criticising its implementation.
For now, landlords appear to be taking a wait-and-see approach to the Act as they weigh how it will impact rental demand and the overall market.
“Ahead of the Renters’ Rights Act coming into force, the data doesn’t suggest a single or immediate reaction from landlords,” Rightmove property expert Colleen Babcock said. “Instead, behaviour appears more cautious and considered, with many focusing on longer-term tenancies, pricing and avoiding void periods in a more balanced market.
“It’s still early days, but the most immediate shift due to the war in Iran has seen some significant increases to borrowing costs for landlords, which may filter through to the market at a later stage.”
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