More than a third of London landlords lifted asking rents in the first month after the Renters’ Rights Act took effect, according to Chestertons’ summer 2026 market update.
The agency said the rule change on 1 May had an immediate effect on pricing behaviour. Because landlords can no longer accept offers above the advertised rent, Chestertons recorded a 36 percent year-on-year rise in landlords pushing up their initial asking price to test the market.
For landlords, the timing matters because it shows how quickly pricing strategy is shifting under the new regime. It also suggests the ban on rental bidding may be feeding higher headline rents in parts of London even before the wider market has fully adjusted.
Why asking rents moved higher
Chestertons said the new rules created an unintended response. Rather than rely on competition between tenants after marketing begins, some landlords appear to be building extra headroom into the first listed rent.
That matters in a market where supply is still tight. The firm’s data said portal enquiries outnumbered tenant applications by 1.99 times in May, up from an average of 1.61 times over the previous six months, pointing to tenants comparing more homes before committing. Katinka Hill, head of lettings at Chestertons, said landlords had increased initial marketing prices to give themselves “some leeway” because they could no longer accept bids above the asking rent.
Hill said tenant demand across London was still resilient, with high enquiry volumes showing that renters were continuing to look for moves. She added that tenants were taking longer to compare properties, making accurate initial pricing more important for landlords who want to secure the strongest interest early.
This follows Landlord Knowledge’s report on Foxtons saying the Renters’ Rights Act wiped £3 million from student lettings revenue in May and June, one of the first signs that the new framework was starting to change landlord and agent behaviour. Alongside Rightmove’s July rental tracker showing record asking rents as supply slipped below last year’s level, the latest Chestertons figures suggest London landlords are already testing how far pricing can stretch under the new rules.
London demand is still supporting rents
The wider London picture remains firm. Chestertons cited Zoopla data showing asking rents in London rose 2.2 percent year on year to £2,206 per calendar month in the second quarter, up from 1.7 percent growth in the first quarter. That put London ahead of the rest of the UK for rental growth for the first time in more than two years.
That backdrop helps explain why landlords feel able to push harder on initial pricing. Demand has not fallen away, but tenants are becoming more selective and more price-aware. In practice, that means overpriced homes may sit longer, while correctly pitched homes can still let quickly.
There is also a policy question behind the figures. The Renters’ Rights Act was meant to stop bidding wars and bring more consistency to rent setting, yet early London data suggests some of the pressure may simply be moving to the listing stage instead. Landlords who overshoot still risk voids, but those who understand local competition may see scope to protect income within the new rules.
Landlords can review Chestertons’ summer 2026 market update for the full London breakdown.
What this means for landlords
- If you’re reletting in London: initial pricing matters more because there is less room to recover missed value through tenant bidding.
- Watch for: longer comparison shopping from tenants, which may expose homes that are priced above local competition.
- Bottom line: the new rules may be lifting advertised rents, but landlords still need a realistic figure to avoid empty weeks.
Editor’s view
The early effect is awkward for ministers. A rule designed to cool bidding pressure may simply be shifting that pressure into the first advertised rent. For landlords, the lesson is simple: know the local market, price cleanly, and do not assume the new law guarantees stronger returns.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 27 July 2026
Sources: Chestertons, Zoopla
Related reading: Foxtons says RRA wiped £3m from student lettings in May and June
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
