Editor's note: This brief was summarised by The Property AI Team from a report by PropertyWire. Read the original article for full details.
Two-thirds of landlords plan rent increases after Renters' Rights Act
New research from the Deposit Protection Service (The DPS) suggests that approximately two-thirds of landlords intend to raise rents following the implementation of the Renters' Rights Act. The survey of over 1,000 landlords, conducted in May 2026 shortly after the Act came into force, found that 68% plan to increase rents on some or all of their properties.
The reforms ended Section 21 evictions, introduced rolling tenancies, and limited rent increases to once annually. These changes are directly relevant to letting agents managing tenancy transitions and rent review schedules.
What is driving rent increases
Landlords cited legislation as the primary factor behind planned rent increases, followed by maintenance costs and associated risks. However, only 19% indicated they would automatically raise rents on an annual basis, leaving the timing of increases uncertain.
The new legislation prohibits charging above market rates. The survey recorded that 13% of tenants are offering above asking rent, a 3% decline from October 2025.
Portfolio reduction continues
The proportion of landlords intending to sell some or all of their portfolio increased from 53% in October 2025 to 56% in May 2026. Factors cited for exits include legislation, returns, mortgage costs, and retirement.
Among small portfolio landlords with one to two properties, 39% plan no changes, 31% intend to sell everything, and 23% aim to offload portions of their holdings. For larger portfolio landlords, 48% plan to sell some properties, 16% plan to exit entirely, and 23% will make no changes.
Market outlook
Matt Trevett, Managing Director at The DPS, said landlords had been in 'wait and see' mode during the lead-up to the Act's enforcement date.
"These latest data suggest that most landlord respondents will be either keeping or raising rents in the future," he stated. "Landlords experiencing mortgage and other costs are looking to make use of the rent raising mechanisms specified by the Act."
The survey indicates a rental market adjusting to new regulatory constraints, with landlords balancing compliance requirements against operational costs. The combination of rent increases and portfolio reductions could affect rental supply and affordability across the sector, and letting agents and inventory clerks should monitor how tenancy practices evolve under the new regime.
Source: PropertyWire