Landlords are preparing for significant change as the Renters’ Rights Act 2025 comes into force with new data highlighting widespread concern across the sector.

Research from Pegasus Insight shows that 80% of landlords are worried about the impact of the legislation, with 70% expecting a negative effect on their own lettings business and 77% predicting wider disruption across the market.

These concerns are already influencing behaviour. Around 78% of landlords say they will become more selective when choosing tenants, while 75% of those planning rent increases cite the reforms as a key driver.

Much of the unease centres on reduced control, particularly following the removal of Section 21 ‘no-fault’ evictions, potential delays in regaining possession and tighter rules around rent increases.

LOW EVICTION RATES

However, tenant data presents a more stable picture of the market. Separate findings from Pegasus Insight show that renters are typically long-term occupants, with the average tenant already spending more than five years in the same property.

Two thirds of tenants say they plan to remain in their current home for a further 4.3 years, suggesting a high degree of stability across the private rented sector.

Eviction rates also remain low, with just 3% of tenants reporting receiving an eviction notice in the past year and fewer than 1% contesting a notice.

BIG IMPLICATIONS

There appears to be a growing disconnect between landlord expectations and tenant behaviour, with many landlords anticipating increased churn despite evidence of long-term occupancy.

This mismatch could have wider implications for the market, particularly if more cautious letting strategies lead to reduced access for tenants and upward pressure on rents.

At the same time, the underlying stability of tenancies continues to support consistent rental income, which remains a key consideration for lenders and investors.

STABILITY IS CRITICAL

Mark Long (main picture, inset), founder and managing director at Pegasus Insight, said: “Landlords are responding to a perceived shift in control, and that is already influencing decisions around rents and tenant selection ahead of implementation.

“But the tenant data tells an important story. Most renters are settled, they stay for long periods and relatively few tenancies end in dispute or eviction.

“For lenders and investors, that stability is critical, underpinning income predictability and reducing risk across the sector.

“The key question now is whether confidence returns once the new framework beds in, or whether caution continues to shape landlord behaviour in the longer term.”