"The tenant data tells an important story. Most renters are settled, they stay for long periods, and relatively few tenancies end in dispute or eviction"
- Mark Long - Pegasus Insight
The first phase of the Renters' Rights Act came into force today, and new research shows the legislation is already reshaping landlord behaviour across the private rented sector.
Q1 2026 Landlord Trends data from Pegasus Insight found that 80% of landlords are concerned about the reforms, with 70% believing the Act will have a negative impact on their own lettings business and 77% expecting broader market disruption.
Those concerns are feeding through into concrete decisions. Four in five landlords say the Act will make them more selective about tenants, while 75% of those planning rent increases cite the legislative changes as a direct driver.
Much of the anxiety centres on a perceived loss of control, particularly around the removal of no-fault evictions, potential delays in regaining possession, and greater constraints on rent management over time.
Tenant behaviour tells a different story
Separate tenant trends research from Pegasus, also conducted in Q1 2026, suggests the sector may already be considerably more stable than landlords fear. The typical renter has spent more than five years in the same home, and two-thirds intend to stay in their current property for a further 4.3 years on average.
Instances of forced movement remain low: just 3% of tenants reported being served an eviction notice in the past 12 months, with only 0.6% contesting one.
The findings point to a clear disconnect between landlord expectations and tenant reality. While landlords are preparing for increased churn and uncertainty, most tenants are already behaving like long-term occupants who value stability and continuity.
That mismatch carries real implications for the sector's near-term trajectory. If landlord caution continues to drive tighter tenant selection and upward pressure on rents, the behavioural response to the legislation could prove more disruptive in the short term than the reforms themselves.
At the same time, the fundamentals of the private rented sector remain solid, with stable tenancies and consistent demand continuing to support reliable rental income.
"Landlords are responding to a perceived shift in control, and that is already influencing decisions around rents and tenant selection ahead of implementation," said Mark Long, founder and managing director of Pegasus Insight (pictured).
"But the tenant data tells an important story. Most renters are settled, they stay for long periods, and relatively few tenancies end in dispute or eviction."
"For lenders and investors, that stability is critical, underpinning income predictability and reducing risk across the sector. The key question now is whether confidence returns once the new framework beds in, or whether caution continues to shape landlord behaviour in the longer term."
