The UK property market, especially London, is witnessing intriguing changes following the introduction of the Renters’ Rights Act early this year. One of such changes is a shift in tenants’ behaviour. Another is an increase in asking rents by landlords.
Research from estate agent Chestertons reveals that more than a third of landlords have increased their asking rents in the months following the introduction of the Act.
The firm’s latest quarterly report found a 36 percent annual increase in landlords raising their initial marketing prices, suggesting some property owners are attempting to navigate new rules that prohibit accepting offers above the advertised rent.
The data indicates landlords are adjusting their pricing strategies in response to the new regulatory framework. A recent report by PropertyWire, an online research platform, quotes Katinka Hill, Head of Lettings at Chestertons, as stating, “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.”
The report notes that the legislative changes come as property market dynamics continue to shift across different sectors, with supply constraints affecting both rental and sales markets.
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As per the tenant behaviour shifts, the report explains that prospective tenants appear to be responding to higher asking prices by conducting more extensive property searches. Portal enquiries outnumbered tenant applications by 1.99 times, compared with an average of 1.61 times in the previous six months.
“Prospective tenants are shopping around more, sending enquiries for more properties they are seeing online as they are looking for value in the market to trigger a move,” Hill noted.
The research, focused on the London market, suggests demand remains strong despite price increases, with enquiry levels indicating continued interest in rental properties. Hill added that well-presented properties continue to let quickly, particularly during the summer period.
The trend reflects broader adjustments in the buy-to-let sector as landlords and tenants adapt to the new regulatory environment. According to Chestertons, demand continues to exceed supply across many parts of London, with both parties expected to become more familiar with the framework over time.
