One particular aspect of the Renters Rights Act may change the accuracy of lettings market indices, at least in the short run.
That’s the suggestion from the Hello Neighbour agency.
It says the ban on agents and landlords accepting offers above the advertised asking price may trigger a change.
The agency says in a blot: “This has a subtle but important effect on the data. Under the old rules, a property could be listed at one figure and let for more once competing tenants bid the price up.
“That uplift did not always show in the advertised price. With that route now closed, there is a clear incentive for landlords to list at a higher price from the outset to capture the level the market will bear.
“If this happens at scale, it could push up advertised rents and, in turn, inflate the year-on-year percentage figures in the months ahead, without necessarily reflecting a real increase in what tenants were previously paying.
“It is too early to say whether this is already a factor in May’s numbers, but it is something we will be watching closely as the new rules bed in.”
Hello Neighbour operates in a number of cities, particularly London.
In relation to the capital’s lettings market it says affordability continues to be the dominant factor.
Enquiries per property rose to 37 in May, up from just 29 in April and the highest level we have recorded so far in 2026.
This is the first month this year where 2026 demand has come close to matching prior years. In May 2025 we recorded 39 enquiries, and 52 in May 2024.
The spring bounce that was notably absent in April has finally arrived, if a little late.
Rents ran well ahead of tenant budgets over the previous two to three years, and the correction seen since the start of 2026 reflects a market adjusting back toward what tenants can realistically pay.
“What we see on the ground supports this” says Happy Neighbour. “Properties priced in line with current demand are still letting quickly, often within days. Those priced against last year’s levels sit longer and usually end up reducing.”
And it suggests that the trends in London continue to sit within a broader national rebalancing.
Recent industry data has pointed to softening demand, improving supply and a clear slowdown in rental growth across the UK, with lower migration and a stronger first-time buyer market cited as key drivers.
London has, in effect, been leading this correction rather than lagging it, with the sharpest adjustments showing at the new let end of the market where rents had run furthest ahead of affordability.
May’s steadier reading may be an early sign that the most acute phase of that correction is behind us, though one month does not make a trend.
