Approximately two-thirds of landlords intend to raise rents following implementation of the Renters’ Rights Act, according to new research from the Deposit Protection Service (The DPS).
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.
Legislative impact on rental strategy
Landlords cited legislation as the primary factor driving 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, and the survey recorded that 13% of tenants are offering above asking rent, representing 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.
The findings come as tenant referencing gains prominence amid rising financial pressures, highlighting broader challenges in the rental market. The shifts in landlord behaviour may also affect property financing, as seen in recent property investment transactions.
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.”
Market outlook
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.
