Could the RRA actually work? A steadier rental market suggests it might

Between 2023 and 2024, the average rent in Britain rose by an estimated 8.7%, from £1,174 to £1,276 a month. Over the same period, tenant demand fell by 4.7 percentage points, from 35.7% to 31.0%.

Between 2024 and 2025, rents rose by a smaller 6.3%, and demand fell by a smaller 2.8 points.

The latest figures show that between 2025 and 2026, rents rose by an average of 2.9%, while demand fell by 2.7 points.

So as rent rises have slowed, the fall in demand has shrunk too. That pattern has held each year since 2023, which could suggest the market is moving towards a more sustainable balance between rents and demand.

Sim Sekhon, Group CEO of LegalforLandlords, said:

"After several years of increasingly stretched affordability for tenants, we think landlords should be encouraged by signs that the rental market could be moving towards a more sustainable balance between rents and tenant demand.

"The introduction of the Renters' Rights Act brings another important change to the way rents can be increased. Landlords can generally only increase rent once a year and must follow the prescribed process, while tenants have the ability to challenge an increase if they believe it is above the open-market rent.

"Rather than seeing this simply as a restriction on landlords, there is a strong argument that greater predictability could ultimately benefit both sides of the rental market. A stable rental market is a more secure rental market, and reliable tenant demand can be more valuable to a landlord than pursuing rapid rent growth only to find that higher prices lead to longer void periods, increased tenant turnover, or even arrears.

"The objective shouldn't be to push rents as high as possible. For landlords, sustainable rental income depends on finding the right balance between achieving a fair market rent and maintaining a successful, long-term tenancy.

"If the trend we are seeing continues, and the new rules encourage landlords to take a more measured approach to rent increases, we could see a rental market that is less volatile and more predictable for everyone involved. That would be a positive development for landlords and tenants alike."

Data and sources

• Estimated average rental demand data: Rightmove

• Average rent data: Office for National Statistics

• View the full data tables online