In the month before the Tenant Fees ban came into force, rents across the UK grew, a report reveals.
The Royal Institution of Chartered Surveyors (RICS) also says that tenant demand has increased slightly for five months in a row.
However, they also say there has been a fall in the number of new rental properties being put on the market.
The organisation says this is a persistent theme over the last three years and landlords who are facing financial losses will need to increase rents.
The fees ban is applicable to new or renewed tenancy agreements that have been signed on or after 1 June.
Tenants can no longer be charged for services
The new law means that tenants can no longer be charged for services such as referencing and creating an inventory.
The chief economist at RICS, Simon Rubinsohn, said: "It remains to be seen whether our prediction of a pickup in activity materialises but the deterioration in net returns for landlords provides a reason why rents are rising."
The report also publishes the thoughts from several surveyors on the state of the current buy to let market with one surveyor in Skegness stating: "Penalising legislation is leading to landlords reappraising their portfolios."
The surveyors also highlight worries over the government's proposed abolition of Section 21, also known as a 'no fault' eviction.
The report uses quotes from several surveyors saying that landlords are increasingly concerned about the potential changes to Section 21 and one surveyor says: "Quite a few landlords are saying they will sell up if it is introduced."
Landlords could be due a tax rebate
Meanwhile, one law firm is urging landlords across the UK to seek legal advice about a potential stamp duty rebate.
They call comes after a landmark case involving an uninhabitable property and the 3% stamp duty surcharge.
Essentially, the case established that properties that are not habitable immediately at the time of completion should not be considered to be a dwelling under the Finance Act 2003.
Now, Primus Law says it is acting for several clients and the court ruling could have major implications for the country's housing market.
The firm's head of litigation, Daniel Thomas, said: "The case highlights the importance of understanding fully the property’s condition and those landlords who have paid tax at an inappropriate level may be able to reclaim in similar circumstances."
