An agency says landlords tested higher rents before restrictions came in, under the Renters Rights Act.

Chestertons makes the claim in a characteristically upbeat assessment of London’s rental market as summer segues into autumn.

The agency says tenantdemand increased in August as growing numbers of landlords brought properties to London’s rental market three months after the Renters Rights Act took effect.

Enquiries from prospective tenants increased by 13% year-on-year. 

The figures mark a clear increase in tenant activity. Year-on-year enquiries had fallen during each of the five months leading up to the introduction of the Act in May, before rising by 17% in May itself and 10% in June. 

After slipping to -7% in July, demand rose sharply again in August.

Meanwhile, new landlord instructions increased by around 6% year-on-year.

The agency claims this demonstrates that confidence is returning as the lettings sector adapts to the new rules.

The Act prevents landlords and agents from inviting, encouraging or accepting offers above the advertised rent.

Chestertons admits some landlords had tested higher asking rents ahead of its introduction, contributing to the temporary slowdown in tenant activity during July.

An agency spokesperson says: “Achieved rental prices are holding firm, which is a positive sign. 

“A notable trend we’ve seen since the Renters’ Rights Act took effect on 1 May is that tenants are taking longer to make decisions, weighing up their options more carefully. 

“This is because they have increased flexibility to move, and there are plenty of quality homes to choose from.’’