New Rental Pricing Tool Helps Agents Navigate Renters' Rights Act Rules

Renters' Rights Act Pressures Agents to Get Pricing Right First Time

Letting agents face a new challenge under the Renters' Rights Act: setting the correct asking rent from the outset. Unlike previous regulations, landlords and agents can no longer accept offers above advertised rental prices, making accurate pricing critical before a property hits the market.

Proptech firm nHabit has responded to this challenge by launching an agent-facing rental pricing tool designed to reduce costly mistakes. The platform analyses rental demand and rejection data by postcode and property type, giving agents insights into how their pricing compares to tenant expectations before properties are marketed.

How Rejection Data Reshapes Rental Pricing

NHabit's approach differs from conventional property portals, which typically track properties renters engage with. The new tool captures something more revealing: properties that prospective tenants actively reject during their search.

This rejection data serves as a proxy for pricing sensitivity and property appeal. When renters dismiss a listing, it may signal that the asking rent is unrealistic for that location and property type, or that other factors—such as transport connections, property condition, or neighbourhood characteristics—are deterring interest.

The tool draws on data generated through nHabit's consumer property app, launched in February 2026. According to the company, the app is on course to reach 10,000 London users by the end of September, with between 150 and 300 new users joining daily. Early usage patterns show that renters weigh multiple factors beyond headline rent: location, property quality, transport links, and longer-term affordability all influence decisions.

"We will understand renting like Tinder understands dating," said Steven Charlton, founder of nHabit. "The only way to get that level of understanding is through a swipe mechanism. With swipes you can see what people don't like, whereas every other platform only captures what people like."

Why Timing Matters Now

The launch timing is strategic. The first phase of the Renters' Rights Act came into force on 1 May 2026, introducing substantial changes to how landlords manage tenancies. Alongside the ban on above-advertised-rent offers, new rules govern rent increases and the abolition of Section 21 evictions have fundamentally altered landlord-tenant dynamics.

These changes mean that getting the initial asking rent correct has become significantly more important. Overpricing a property now risks it languishing on the market without strong interest, whilst underpricing sacrifices potential yield. There is less room for correction once a tenancy begins.

For letting agents adapting their workflows to the new regulatory environment, the proposition is clear: better information about tenant preferences could help identify unrealistic asking rents earlier, before a property struggles to attract interest. This can accelerate lettings cycles and reduce void periods—a material benefit in an increasingly competitive rental market.

Looking Forward

As the Renters' Rights Act continues to reshape the rental sector, tools that provide granular, demand-side data are likely to become increasingly valuable. Agents who can access planning alert tool information alongside pricing analytics may gain additional competitive advantages in identifying emerging market opportunities.

Source: Property Industry Eye.