Nearly half of UK buy-to-let landlords are planning to raise rents in response to the incoming Renters’ Rights Bill, according to fresh data from Landbay.
The survey found that 44% of landlords intend to increase rents due to the anticipated changes. Those with mid-sized property portfolios appear most likely to take this step, with 32% of landlords owning between four and ten properties saying they’ll raise rents. Close behind, 28% of landlords with 16 to 30 properties also plan to follow suit.
Landlords with properties in the South East are expected to be the most proactive, with the North West also highlighted as a region likely to be affected.
On average, these landlords are preparing to hike rents by around 6%, a figure that exceeds the current general inflation rate of 3.6%. This could mean an extra £74 a month added to typical rent payments.
The Renters’ Rights Bill will restrict landlords to just one rent increase per year, and only up to the current market rate—meaning the amount that could reasonably be expected if the property were newly listed. Tenants will also have the right to challenge rent increases they believe are above market value through a first-tier tribunal.
Many landlords appear to be increasing rents now, ahead of the Bill coming into effect, due to concerns about future regulations. One of the biggest sources of anxiety among landlords is the proposed scrapping of Section 21, which currently allows them to evict tenants without having to give a specific reason. In a previous Landbay survey, 75% of landlords said they were worried about the potential removal of this provision.
Rob Stanton, Landbay’s sales and distribution director, warned that this trend could have broader social consequences. He explained that the rush to increase rents reflects how landlords are trying to protect their investments from the financial implications of the legislation and the loss of flexibility in managing their properties.
Stanton also cautioned that this behaviour could deepen the existing cost-of-living crisis for many renters. By prompting landlords to act defensively, the Bill may unintentionally make housing less affordable in the short term.
Most responsible landlords agree that protecting tenants’ rights is essential. However, many also believe it’s just as important to safeguard the interests of property owners. Striking the right balance between reform and landlord support is vital if the private rental sector is to continue playing a key role in the UK’s housing system.
Although changes to policy and regulation are beyond their control, buy-to-let lenders still have an important part to play. Their focus is on offering competitive products that suit landlords’ needs, whether they’re purchasing a new property or refinancing an existing one.
Recent figures show that the vast majority of landlords – 89% – are planning to raise rents within the next year. Over a third expect to increase rent by between 3% and 10% during that time.
Despite this, not all landlords are opting for rent hikes. Around 11% say they don’t intend to raise rents at all over the next 12 months.