As we move through June 2026, the rental landscape across South Devon is shifting. For landlords in Torbay and Teignbridge, the last fortnight has been particularly revealing, providing a clearer picture of how recent legislative changes are bedding in and how tenant behaviour is evolving in response to economic pressures.
At Butterworth Lettings & Property Management, we’ve been closely monitoring these developments to ensure our clients stay ahead of the curve. Whether you have a single flat in Torquay or a portfolio of family homes in Newton Abbot, understanding the current pulse of the market is essential for long-term success.
The Local Numbers: A Steady Upward Curve
Despite the broader headlines of a "softening" sales market in some parts of torbay and Teignbridge, the rental sector continues to show resilience. Over the past two weeks, we’ve seen a continuation of the steady growth that has defined the start of the year.
Across the region, average rent growth is currently sitting at approximately 4-5% Year-on-Year (YoY). While this is a step back from the double-digit surges we witnessed in previous years, it represents a more sustainable and "normalised" market.
In Torbay, demand remains particularly high for well-maintained two- and three-bedroom houses. In Teignbridge, the falling capital values (down roughly 4% in some areas) are actually creating a unique window for landlords looking to expand their portfolios. With lower entry prices and rising rents, the gross yields in towns like Kingsteignton and Dawlish are becoming increasingly attractive.
However, it is important to note that "affordability" is now the dominant factor in every transaction. While the demand is there, the financial ceiling for many tenants is closer than it has been in years.
The Impact of the Renters’ Rights Act (Since May 1st)
We are now several weeks into the official implementation of the Renters’ Rights Act, which came into full force on May 1st, 2026. This legislation was designed to rebalance the relationship between landlords and tenants, and its impact on market activity has been immediate and measurable.
One of the most striking statistics from the last two weeks is the change in how rent increases are being handled. Nationally and locally, landlords are seeing 23% fewer rent increases on existing tenancies compared to this time last year.
Why the drop in increases?
There are two primary reasons for this trend:
- Legislative Caution: The new Act introduced stricter rules around how and when rents can be reviewed. Landlords are being more cautious, ensuring they follow the new statutory notice periods and "reasonableness" tests to avoid potential challenges.
- Tenant Retention: With the abolition of "no-fault" evictions, many landlords are prioritising the stability of a good, long-term tenant over an extra £25-£50 a month.
Interestingly, while there are fewer increases happening overall, when an increase does occur (usually at the point of a new tenancy or a major renewal), the jumps are often larger. This suggests that landlords are "banking" their increases when they have the opportunity, rather than making small, incremental changes every year.
Our Predictions: What’s Next for South Devon Rents?
Looking at the data from the first half of June, we can begin to forecast the trajectory for the remainder of 2026. At Butterworth Lettings, our prediction is clear: Rents will continue to steadily rise, but not at the rate many landlords expect.
It is easy to look at the regional averages: like the 7.9% growth seen in places like Bath: and assume Torbay and Teignbridge will follow suit. However, our local micro-market is different. We are seeing a "plateau of affordability."
The "Affordability Limit"
The reality is that people are hitting their financial limits. While wages have risen, they haven't kept pace with the cumulative cost of living over the past three years. If a property is priced even slightly above the market ceiling, we are seeing a significant drop-off in enquiries.
Our advice to landlords is simple: Keep your rent prices realistic.
By pricing a property at the top of the bracket, you might achieve a higher monthly figure on paper, but you significantly narrow your audience of potential tenants. A wider pool of applicants allows you to have choice, choosing the highest-quality tenant who is likely to stay for the long term. In the current legislative climate, a stable, reliable tenant is far more valuable than an extra few pounds in rent.
Navigating the New Compliance Landscape
With the Renters’ Rights Act now in play, the "admin load" for landlords has increased significantly. From the upcoming national landlord register to the more complex possession grounds, the days of "casual" landlording are effectively over.
The market is moving towards professionalisation. Tenants are more aware of their rights, and the government is placing higher expectations on the quality and safety of rental stock. This is where professional property management becomes an investment rather than a cost.
At Butterworth Lettings & Property Management, we handle the complexities so you don't have to. From ensuring your tenancy agreements are fully compliant with the latest May 1st updates to managing the new registration requirements, we provide the expertise needed to navigate this transition smoothly.
Summary: Key Takeaways for Landlords
- Market Growth: 4-5% YoY growth across Torbay and Teignbridge.
- The "Act" Effect: Rent increases on existing tenancies are down by 23% as the market adapts to new rules.
- Pricing Strategy: Be realistic. Pushing rents too high reduces your pool of quality applicants and increases the risk of voids.
- Yield Opportunity: With sales prices softening in Torbay & Teignbridge, now is a strong time for strategic acquisitions.
How Can We Help?
The rental market in 2026 requires a nuanced approach. You need a partner who understands the local streets of Torquay, Paignton, Newton Abbot, and beyond, but who also has a firm grasp of the national legislative framework.
Are you unsure if your current rent is realistic? Or perhaps you're concerned about how the Renters’ Rights Act affects your specific portfolio?
Contact us today. We offer realistic, market-aligned valuations that take into account current tenant demand and the latest legal requirements. Let us help you maximise your investment while staying fully compliant.