Most landlords plan to raise rents and tighten tenant selection in response to the government’s newly enacted Renters’ Rights Act, according to new research from Pegasus Insight.
The study found that 81% of landlords will become more selective about who they let to, while 71% intend to raise rents to offset additional costs linked to the new law. Nearly three-quarters (73%) believe the legislation will have a negative impact on their lettings activity.
SWEEPING REFORMS
The Act, which received Royal Assent on 28 October, represents one of the most sweeping reforms to the private rented sector in decades. It abolishes Section 21 ‘no-fault’ evictions, introduces open-ended tenancies, restricts rent increases to once per year and caps advance rent payments at one month.
Mark Long, founder and managing director of Pegasus Insight, said: “The Renters’ Rights Act marks one of the most significant shifts in the private rented sector in decades, and many landlords are preparing cautiously.
“Faced with stricter limits on rent reviews and growing uncertainty around evictions, they’re acting pre-emptively to protect income and manage risk. These are rational business responses, but they risk compounding the affordability pressures tenants are already facing.”
The research suggests that the changes could deepen tensions between landlords and tenants. While landlords anticipate reduced flexibility and higher costs, many tenants see the reforms as a long-overdue rebalancing of rights.
Long added: “Our recent Tenant Trends research found that almost half of renters believe the Renters’ Rights Act will benefit them, largely due to stronger protections and limits on rent rises.
“But the corresponding Landlord Trends data tells another story: four in five landlords say they’ll be more choosy about who they let to, and two-thirds intend to raise rents in response to the new rules.
“This mismatch between perception and reality underlines how complex PRS reform can be: policies designed to protect tenants could, unintentionally, make it harder for them to find and afford a home.”
The findings, drawn from Pegasus Insight’s Landlord Trends Q3 2025 report, are based on 872 detailed interviews with members of the National Residential Landlords Association carried out between 21 September and 9 October 2025.
Analysts say the research highlights the potential for further market tightening at a time when rental demand remains high. With many landlords already citing regulatory fatigue and rising operational costs, some may choose to exit the market altogether—reducing supply and putting further upward pressure on rents.
While the government has argued that the Renters’ Rights Act will create a fairer and more stable system for tenants, the early signs suggest the transition could prove turbulent for both sides of the rental equation.
