New research from the Deposit Protection Service shows that roughly two-thirds of landlords plan to increase rents after the Renters’ Rights Act took effect.
The questionnaire, which included more than 1,000 landlords and was carried out in May 2026 just after the Act’s commencement, revealed that 68% intend to raise rents on either part or the entirety of their holdings. The changes abolished Section 21 possession notices, created continuous tenancies and capped rent hikes to a single adjustment per year.
Legislative impact on rental strategy
Respondents pointed to the new law as the chief reason for raising rents, with upkeep expenses and related risks mentioned next. Yet just 19% said they would raise rents automatically each year, making the schedule of any hikes unclear.
The Act bars landlords from setting rents above market levels, and the poll noted that 13% of tenants were bidding higher than the listed price, a drop of 3% compared with October 2025.
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The share of owners planning to dispose of part or all of their portfolios rose from 53% in October 2025 to 56% in May 2026. Reasons given for exiting comprised the legislation, investment returns, mortgage expenses and retirement.
For owners of small portfolios holding one or two units, 39% anticipate no adjustments, 31% intend to liquidate all assets, and 23% look to sell part of their stock. Among larger landlords, 48% foresee selling selected properties, 16% plan a full exit, while 23% expect to keep their holdings unchanged.
Matt Trevett, Managing Director at The DPS, noted that landlords remained in a ‘wait and see’ stance throughout the period preceding the Act’s enforcement. “These latest data suggest that most landlord respondents will be either keeping or raising rents in the future,” he said. “Landlords experiencing mortgage and other costs are looking to make use of the rent raising mechanisms specified by the Act.”
