Fewer landlords plan to raise rents than a year ago, suggesting the market is finally slowing down, the Landlord Trends report by mortgage market specialist Pegasus Insight has found.
Some 61% of landlords plan to raise rents in the next 12 months, down from 78% a year ago.
For those intending to increase rents, the average anticipated rise is 6%, compared with 5% in Q2 2024.
Mark Long, founder and director of Pegasus Insight, said: “Landlords remain under pressure from higher costs and policy change, and the instinct to raise rents remains strong. But our research shows that the market may be reaching an affordability ceiling.
“When rent levels rise too far, demand can falter – this is price elasticity in action, and many landlords recognise that pushing further risks losing tenants or facing longer voids.
“At the same time, the forthcoming Renters’ Rights Bill is influencing decisions now. With annual rent increase limits and tribunal challenges on the horizon, landlords are reviewing their portfolios carefully.
“This is a delicate period for the Private Rented Sector: if costs keep rising as regulation tightens further, we may see a fresh wave of rent inflation despite the moderation in intentions revealed by our latest research.”
Rents rose by 5.7% in the year to August 2025, reaching £1,348 a month.
The looming Renters’ Rights Bill (RRB) will introduce limits on rent increases to once per year, alongside wider reforms such as the abolition of Section 21 and the move to open-ended tenancies.
With Royal Assent expected by November and implementation likely from mid-2026, many landlords appear to be acting pre-emptively, ensuring their rent levels are sustainable before the new framework takes effect.
