According to the latest Landlord Trends Q3 2025 report, another 81% believe it will negatively impact the wider private rented sector (PRS).
Approximately 81% of landlords expect legislation to make them more selective about prospective tenants and 71% said they would increase rent to absorb new costs and restrictions.
The Renters’ Rights Act came into effect on 27 October, with key measures including the abolition of Section 21 eviction notices, open-ended tenancies, limiting rent increases to once per year, limiting advance rent payments to one month and reforming grounds for possession.
If you want to explore our coverage of the Renters’ Right Act, follow this link: https://www.mortgagesolutions.co.uk/news/2025/10/31/all-you-need-to-know-about-the-renters-rights-act/
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.
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“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 report also added that there was a disconnect between landlord and tenant expectations, with landlords expecting higher costs and reduced flexibility, whereas renters see it as more of a positive.
Long explained: “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.”
