Average rents across the UK climbed 0.8 percent in March to reach £1,311, marking the first monthly increase since October 2025 and signalling a potential turning point for the rental market. The latest HomeLet Rental Index shows rents remain 2.5 percent below October’s peak but have broken a five-month streak of stagnation or decline. Annual growth stands at 1.8 percent – well below the double-digit rises seen in previous years but a sign that the market is finding its footing.
London bounces back after four-month slide
Greater London saw the strongest monthly recovery, with average rents rising 1.5 percent to £2,097. The capital had recorded four consecutive monthly falls before March’s uptick. Annual growth in London stands at 1.8 percent, matching the national average. Outside London, rents increased more modestly by 0.4 percent to £1,125 per month, representing a 1.6 percent annual rise. This follows Landlord Knowledge’s February report on rent stagnation, which found tenants were acting cautiously amid affordability pressures. The latest figures suggest the market is beginning to stabilise rather than continuing to soften.
Regional picture shows Northern Ireland leading annual growth
Northern Ireland recorded the strongest annual increase at 4.9 percent, with average rents reaching £955. Scotland followed at 3.6 percent annual growth (£971), while the North East saw rents rise 3.2 percent year-on-year despite a slight monthly dip. The South West and South East both recorded monthly increases above the national average, at 1.1 percent and 0.9 percent respectively. Only the East of England showed annual decline, with rents down 1.0 percent compared to March 2025. Wales and the North East saw small monthly falls but remained in positive territory annually. Kate Wenham, customer development team leader at HomeLet and Let Alliance, said the market was adjusting to new realities. “After several months where rents either dipped slightly or stood still, March’s data shows the first clear uptick since October,” she said. “We’re still experiencing a market where tenants must be conscious of price. Affordability pressures haven’t eased, but both landlords and renters appear to be adjusting to a new normal, with smaller, more measured rent increases rather than the sharp rises we’ve seen in the past.” With the Renters’ Rights Act taking effect on 1 May, Wenham urged landlords and agents to focus on tenant retention. “As May 1st edges closer, the focus for agents and landlords should be on sustainable tenancies rather than stretching affordability to breaking point,” she said.
What this means for landlords
- If you’re reviewing rents: The market supports modest increases but not aggressive rises – 0.8 percent monthly growth suggests measured adjustments are sustainable while larger hikes could trigger tenant turnover.
- Watch for regional variation: Northern regions and devolved nations show stronger annual growth than the South – consider location when benchmarking.
- Bottom line: The rental market is stabilising at a lower growth rate than recent years, with tenant retention becoming more valuable as the RRA introduces new tenancy protections.
Editor’s view
After months of uncertainty about where rents would settle, March’s uptick suggests the market has found its floor – at least for now. Landlords who kept rents competitive through the winter may find they retained the tenants worth keeping. With Section 21 ending in a month, the value of stable, paying tenants has rarely been higher.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 1 April 2026
Sources: HomeLet Rental Index
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