Landlords are preparing to raise rents in response to what many view as a tightening regulatory landscape under the newly enacted Renters’ Rights Act.

Fresh analysis from a mortgage market research firm, highlights widespread unease about the long-term financial impact of the legislation. 

Key reforms include the abolition of Section 21 ‘no-fault’ evictions, the introduction of open-ended tenancies, a cap on advance rent payments to one month, and a limit on rent reviews to once annually.

According to the market research’s latest Landlord Trends report:

• 81% of landlords say they will be more selective when choosing tenants

• 71% plan to increase rents to absorb the added compliance costs and reduced flexibility.

The firm’s founder, 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.”

He added: “These are rational business responses, but they risk compounding the affordability pressures tenants are already facing.”

The report also finds that close to 75% of landlords expect the Renters’ Rights Act to disrupt their own rental operations, citing increased regulation and reduced flexibility as key concerns.

The research firm’s spokesman said: “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.”