Data from Hamptons, drawn from Connells Group records, reveals a notable reduction in the number of sitting tenants facing rent increases in May 2026 compared to the previous year. Specifically, 23% fewer tenants saw their rent hike compared with May 2025. This shift coincides with the introduction of the Renters’ Rights Act, suggesting landlords are exercising greater caution on incremental rent adjustments.
However, the analysis also shows that when landlords do raise rents, the increases tend to be steeper. This indicates a strategic recalibration rather than a wholesale retreat from rent rises. Landlords may be waiting longer between increases, then applying more substantial uplifts to compensate for the pause. This pattern reflects an attempt to balance tenant retention with maintaining income levels amid ongoing inflationary pressures.
For investors, the immediate impact is a reduction in rental volatility, which could support longer tenancy durations and lower void rates. Yet, the potential for larger rent jumps when they occur introduces a layer of risk for tenants and could influence demand dynamics in certain markets. Monitoring local rent rise frequency and magnitude will be essential to gauge how the Act reshapes landlord behaviour over the coming months.
Source: https://www.property118.com/renters-rights-act-sees-landlords-pause-rent-rises/
