"Faced with stricter limits on rent reviews and growing uncertainty around evictions, they [landlords] are acting pre-emptively to protect income and manage risk. These are rational business responses, but they risk compounding the affordability pressures tenants are already facing"
- Mark Long - Pegasus Insight
Landlords are preparing for the newly enacted Renters’ Rights Act by tightening tenant selection and raising rents, according to research by mortgage market specialist Pegasus Insight.
The Act, which received Royal Assent on 28 October, abolishes Section 21 ‘no-fault’ evictions, introduces open-ended tenancies, limits rent increases to once per year, and caps advance rent payments at one month.
Data from the Landlord Trends Q3 2025 report shows that:
81% of landlords expect the legislation will make them more selective about prospective tenants
71% plan to increase rents to offset additional compliance costs
73% believe the Act will have a negative impact on their lettings activity
81% anticipate it will negatively affect the wider private rented sector (PRS)
Mark Long, founder and managing director of Pegasus Insight, comments: “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. These are rational business responses, but they risk compounding the affordability pressures tenants are already facing.”
Pegasus Insight’s research also highlights a growing disconnect between landlord and tenant expectations. While landlords anticipate higher costs and reduced flexibility, tenants largely view the reforms as beneficial.
Long explains: “Our recent Tenant Trends research found that 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.”
