Rent growth slows as renters hit a ceiling
Rents are still rising, but much more slowly. Cotality's index, released on 2 November 2026, shows rents rose 0.9% over the three months to October (seasonally adjusted), the smallest rise since January 2025.
Why rents are slowing
- Renters are at their limit. Tim Lawless says renters are likely approaching a ceiling on what they can pay.
- More homes for rent. Vacancy is at its highest since January 2022.
- Slower migration means less new demand.
Rents up, values down
Source: Cotality. Capital city yields are the highest since May 2015.
| Units | 4.7% |
| Capital cities | 3.8% |
| Houses | 3.7% |
What 'hitting a ceiling' means
Rents can only rise as far as tenants can pay. After years of steep increases, many renters are spending a large share of their income on housing, so landlords asking for more find fewer takers. That is when rent growth slows, even if homes are still in short supply.
It doesn't mean rents will fall everywhere, but it does give renters more bargaining power than they've had in years.
What it means for you
Renters: slower increases give you more room to negotiate at renewal. Listers: a room priced in line with similar listings, with good photos and clear bills, fills faster than one priced at the top.
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Figures are from the sources above at the time of writing. This article is general information, not financial or legal advice.