Chestertons’ data shows pattern of rent reductions reversed
More than a third of landlords raised their rental prices in the first month of the Renters’ Rights Act, according to data from Chestertons’ Quarterly Market Report (July 2026).
It comes after the RRA banned rental bidding and said that rents must align with local competition.
According to Chestertons’ data there was a 36% YOY increase in landlords lifting their initial prices to test the market. Its data showed that in May, the first month under the RRA, -36% of landlords cut their rents, following several months when there were increases in the proportion making reductions.
Its data also showed that in May portal enquiries outnumbered tenant applications by 1.99x – compared to an average of 1.61x in the previous six months.
Katinka Hill, head of lettings at Chestertons. said: “Landlords have reacted to the Act by increasing the initial marketing price of their properties to give themselves some leeway as they now cannot accept over the asking rent.
“However, tenant demand across London continues to be resilient, with high levels of enquiries demonstrating that people are still actively looking to move.
More informed decisions
“We’re also seeing tenants take more time to compare properties and make informed decisions, resulting in a more considered search process. For landlords, the focus is increasingly on getting the asking price right from the outset to attract the strongest level of interest.”
“Prospective tenants are shopping around more, sending enquiries for more properties they are seeing online – shown in the recent disparity between portal enquiries and applicant registrations – as they are looking for value in the market to trigger a move.”
“Well-priced, well-presented properties continue to let quickly and we’re encouraging clients to remain responsive to market feedback where necessary.
“Overall, we’re seeing a market that is settling into the new legislation, with demand continuing to outweigh supply across many parts of London, especially as we approach mid-summer. As confidence in the new framework grows, we expect both landlords and tenants to become even more comfortable navigating the changing landscape.”