A letting agent has been told to increase rents by 1.5% above inflation to cover the costs of complying with the Renters Rights Act (RRA). 

The Skegness-based firm disclosed the uplift in the latest lettings market report from the Royal Institution of Chartered Surveyors (RICS).

The agent says: He says: “Prior to the RRA being approved, landlords were looking at rent increases circa Retail Price Index (RPI).”

However he adds: ‘As details emerge of what has been agreed in Parliament and on what timescale, we are instructed to increase by RPI +1.5% to help with anticipated costs of compliance in the next 12 months.”

More agents across England contributing to the RICS report highlight widespread landlord concerns about the potential impact of the Act. 

An agent from the West Midlands writes: “Supply/demand imbalance as buy to let investors leave the market is forcing rental property to remain very scarce.

“Expect many Section 21’s to be issued in the early part of 2026.”

A Huddersfield agent states: “Fewer properties available as more landlords continue to sell.”

A Hereford agent agrees and says: “Many investors are selling up their buy to let investments due to government overreach and taxes.”

RICS says the lettings sector “remains under pressure”.

Tenant demand fell by 27% in December and new landlord instructions were still “deeply negative”, fell by 39%.

According to the institution, the data points to entrenched supply shortages.

Rents are therefore projected to keep climbing, with an average increase of about 3% over the next 12 months.