Landlords Respond to Legislative Changes by Raising Rents

More than half of UK landlords (51%) have increased rents over the past 12 months, according to a new survey conducted by The Deposit Protection Service (DPS). This upward pressure on rents is closely linked to uncertainty surrounding forthcoming legislative reforms, particularly the Renters’ Rights Act (RRA), which is set to come into force on 1 May 2026. The survey highlights that many landlords are reassessing their position in the private rented sector amid these changes.

Significant Number of Landlords Considering Selling Properties

The DPS data shows that 53% of landlords are contemplating selling some or all of their rental properties within the next one to two years, a figure unchanged since March 2025. Legislative changes are cited as a key factor influencing this decision by 89% of landlords considering selling. Capital Gains Tax reforms also remain a significant concern, affecting 90% of those landlords, while the Renters’ Rights Act is a consideration for 89%.

This trend suggests that regulatory uncertainty is prompting landlords to evaluate the viability of their investments, potentially impacting the supply of rental properties in the market.

Rising Rents and Stability in Mortgage Costs

The survey reveals that 17% of landlords plan to increase rents within the next six months, with a further 25% intending to raise rents between six and 18 months from now. However, 24% of landlords expect to keep rents unchanged during this period.

The DPS attributes this relative stability to recent monetary policy developments. The Bank of England’s decision to reduce interest rates to 3.75% has helped lower mortgage costs, easing the financial pressure on landlords and reducing the immediate need to raise rents to cover higher borrowing expenses.

Landlords Adopting a ‘Wait and See’ Approach

Matt Trevett, Managing Director at The DPS, commented on the findings: “Our data show that rental values in England, Wales and Scotland are stable at the moment. Landlords are less inclined to raise rents in the short term because their mortgage and operating costs have themselves stabilised. There has been an increase in the proportion of landlords looking to increase rents in the next 18 months. However, overall, the latest data suggest most landlords are adopting a ‘wait and see’ approach ahead of the implementation of the Renters’ Rights Act.”

This cautious stance reflects landlords’ desire to assess the full impact of the RRA before making significant changes to rent levels or their property portfolios.

Deposit Values and Rent Levels

The report also notes that the average deposit value has risen to £1,195, up £45 from £1,150 in September 2024. This increase corresponds with an estimated average monthly rent of approximately £1,035, representing a 3.9% rise between September 2024 and September 2025.

These figures provide useful benchmarks for landlords and letting agents when reviewing rent and deposit levels in the current market.

What This Means for UK Landlords

Landlords should be aware that legislative changes, particularly the Renters’ Rights Act, are influencing market behaviour. While some landlords are increasing rents to offset potential future costs, others are holding steady due to stabilised mortgage expenses. The significant proportion considering selling properties may affect rental supply and market dynamics in the coming years. Adopting a measured, informed approach will be essential as the sector adapts to new regulations.