New figures show that rental prices across Great Britain have increased by nearly 10% in the past year—underscoring the strong profitability of the sector, even as the proposed Renters’ Rights Bill (RRB) moves closer to becoming law. The findings will reassure landlords concerned that legislative changes could impact their income or business model.
Steady rent rises reinforce landlord returns
According to the latest research by FCC Paragon, rents have risen sharply over the last 12 months, with the national average increasing by 8.1%—equivalent to an extra £100 per month. This puts the average monthly rent across Great Britain at £1,338, up from £1,238 the previous year.
London saw the steepest rise, with rents jumping by 9.9% since January 2024. This means landlords in the capital are now typically charging £2,235 per month—an annual increase of £201, or £17 per month. The North West followed closely behind with a 9.3% increase, while the North East rose by 8.7%, Wales by 8.6%, and the East Midlands by 8.4%. Even in more stable markets like Yorkshire & Humber, rents grew by 4.9%.
Bekki Leaves, Managing Director at FCC Paragon, commented: “The Renter’s Rights Bill will not hamper the profitability of being a buy-to-let landlord. Nor will it slow the rising price of rent in Britain.”
Renters’ Rights Bill unlikely to dampen landlord profitability
The Renters’ Rights Bill includes a provision preventing landlords from implementing mid-tenancy rent increases above local market rates, a measure aimed at stopping so-called “backdoor evictions.” However, landlords will remain entirely within their rights to raise rents to reflect current market values.
As Leaves pointed out: “By no means does it mean that landlords cannot increase rent for existing tenants to match increases in that fair market value. For example, landlords in London can now fairly insist on increasing their rents by up to 9.9% for tenants who moved in at the start of 2024.”
Importantly, the Bill does not include traditional rent controls. Tenants may challenge unfair increases through a tribunal, but landlords will still be entitled to bring rents in line with prevailing rates—particularly when market demand justifies the adjustment.
The government’s continued refusal to introduce full-scale rent caps means landlords can plan for consistent income growth, especially in regions with sustained rental demand.
Landlords remain protected and profitable in new legislative era
While the RRB may introduce checks on extreme rent increases, it explicitly avoids interfering with normal market mechanisms. The average monthly rent increase of £8.33 demonstrates that landlords across the UK are still able to respond flexibly to inflation, cost pressures, and changing tenant demographics.
FCC Paragon’s analysis reveals that rent increases have been broadly consistent across both urban and regional areas, suggesting a healthy appetite for rental homes and limited impact from regulatory uncertainty.
“The government is determined to avoid implementing any kind of rent control on the British market,” Leaves added. “This is an attempt to thwart the unfair practices of a few landlords and ensure people can afford a good home without having to stem the profit potential of enterprising landlords.”
