A record average, but a calmer climb
The HomeLet Rental Index recorded a new record average rent of £1,387 per calendar month in September 2026, up 3.3% year-on-year. The ONS put private rent growth across England at 3.8% over the same period. Those figures still sting if your landlord has just handed you a renewal notice, but the pace of growth has eased compared with the peaks of 2022 and 2023. That is not the same as rents falling, and it is worth being clear-eyed about why they remain high.
Why rents keep rising
Three things are pushing rents up even as the rate of increase moderates.
- Structural undersupply. The number of rental homes available has not kept pace with demand for years. Planning constraints and slow new-build delivery mean the shortfall is not going away quickly.
- Landlords leaving the market. Changes to mortgage interest tax relief, higher stamp duty on investment purchases, and the administrative weight of new regulation have led a meaningful number of smaller landlords to sell up. Fewer properties chasing the same pool of tenants keeps rents firm.
- Renewed urban demand. Office-based working patterns have strengthened in many city centres, bringing commuter tenants back to urban neighbourhoods. Competition for well-located flats is particularly sharp in London, Manchester, and Bristol.
None of this means you have no room to negotiate. It means you need to go into any negotiation prepared.
Your rights under the Renters' Rights Act
The Renters' Rights Act introduced some of the biggest changes to tenancy law in a generation. If you signed or renewed after the Act came into force, the key points for you are:
- Rolling tenancies by default. Fixed terms no longer roll into assured shorthold tenancies at the end of a set period in the old sense. Your tenancy continues on a rolling basis until either you or your landlord ends it properly.
- Two months' notice to leave. If you want to end your tenancy, you must give two months' written notice. Keep a copy of everything you send.
- Protection from no-fault eviction. Section 21 (the so-called no-fault eviction route) has been abolished. Your landlord can only seek possession on specific grounds set out in the Act, for example if they intend to sell the property or move in themselves, or if you are in serious rent arrears. Speak to your solicitor if you receive any notice to quit and are unsure of its validity.
Challenging a rent increase
Your landlord must use a formal Section 13 notice to raise your rent, and they can only do this once in any twelve-month period. If you believe the proposed increase is above the market rate for comparable properties in your area, you have the right to refer it to the First-tier Tribunal (Property Chamber). The tribunal will look at what similar homes in the same neighbourhood are actually letting for, not simply what your landlord is asking. You do not need a solicitor to make an application, though getting advice beforehand is sensible. Gather evidence: recent listings for comparable properties, ideally within half a mile and of a similar size and condition. Ask our team if you want a steer on local comparables.
Budgeting and alternatives worth considering
Before your renewal comes up, do three things. First, check what comparable properties are currently advertised for locally. If your landlord is asking significantly above the going rate, you have a negotiating point. Second, factor in moving costs if you are tempted to switch: a deposit on a new place, removal costs, and any void period can easily outweigh a modest rent rise. Third, think honestly about whether your current home still fits your life.
House-sharing remains one of the most effective ways to cut per-person housing costs, particularly for younger tenants or those new to a city. If you are open to it, moving one or two stops further out on a rail or tube line can also make a significant difference to affordability, especially now that hybrid working gives many people more flexibility over where they live day to day.
What good tenancy documentation looks like
Under the new written-statement rules, your landlord is required to provide you with a written statement of your tenancy terms before or at the start of your tenancy. A well-drafted agreement should clearly set out: the address and description of the property, the monthly rent and the date it is due, the deposit amount and which government-approved scheme holds it, the notice periods for both parties, and the grounds on which the landlord may seek possession.
Red flags to watch for include: vague or missing clauses about who is responsible for repairs, any term that tries to restrict your right to refer a rent increase to the tribunal, anything that purports to create a fixed term of less than six months (which would be unusual under the new regime), and any deposit that has not been registered with a recognised scheme within thirty days of payment. If a clause looks unusual or conflicts with what you have been told verbally, ask for it to be explained in writing before you sign.
A practical takeaway
Record rents do not mean you are powerless. Know your rights, read your agreement carefully, and make sure you have comparable evidence to hand before any renewal conversation. If something does not look right, ask questions early. Our lettings team is happy to talk through your situation without obligation.
No comments
Leave a comment