Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Landlords Face £5,000 Median Cost Increase from Renters’ Rights Act

A new survey has revealed that landlords and property investors have faced a median extra cost of £5,000 as a result of the Renters’ Rights Act. The survey, conducted by Handelsbanken and reported by The Negotiator, highlights increased costs and changing behaviours among landlords in the UK rental market.

The survey, which included around 200 landlords and property investors—mainly professional portfolio holders—indicates that the cost of complying with the Renters’ Rights Act has been significantly higher than previous government estimates. The increased costs are attributed to higher operating expenses, compliance requirements, maintenance, insurance, and energy efficiency upgrades.

According to the findings, 40% of landlords surveyed are now prioritising lower-risk tenants, citing higher overall costs and new eviction rules that make removing problematic tenants more expensive and time-consuming. The report also notes that 20% of respondents have sold properties due to increased costs, while 19% have withdrawn properties from the rental market.

Nearly half of those surveyed (46%) said that higher costs have led them to delay upgrades or improvement works, raising concerns about the potential decline in the quality of rental housing stock. The survey suggests that the private rented sector is becoming more expensive and selective, with landlords focusing more on tenant risk, arrears exposure, and long-term tenancy stability.

These developments are particularly relevant for letting agents and inventory clerks, as they may see changes in landlord requirements, tenant selection processes, and property maintenance schedules. The findings underscore the impact of recent legislative changes on the operational landscape of the UK rental sector.