The Renters' Rights Act might only have become law, but landlords are already making changes that could leave tenants paying more and facing tighter checks.
Research by Pegasus Insight found the new legislation will push up rents and reshape how landlords operate.
The mortgage market specialist's study reveals that 81% of landlords plan to be choosier about tenants, while 71% intend to increase rents to meet new compliance costs.
A further 73% believe the new law will damage their lettings business, with 81% warning it will hurt the private rented sector.
Landlords are protecting income
The firm's managing director and founder, Mark Long, said: "The Renters' Rights Act marks one of the most significant shifts in the private rented sector in decades, and many landlords are preparing cautiously.
"Faced with stricter limits on rent reviews and growing uncertainty around evictions, they're acting pre-emptively to protect income and manage risk."
He added: "These are rational business responses, but they risk compounding the affordability pressures tenants are already facing."
Landlords are worried
The Renters' Rights Act introduces open-ended tenancies, removes Section 21 'no-fault' evictions, caps advance rent payments at one month and restricts rent rises to once a year.
The research also points to what appears to be a widening disconnect between tenant and landlord expectations.
Pegasus Insight says that while landlords are anticipating higher running costs and less flexibility, tenants see the law as a big win.
Mr Long said: "Our Tenant Trends research found that almost half of renters believe the Renters' Rights Act will benefit them, largely due to stronger protections and limits on rent rises.
"But the corresponding Landlord Trends data tells another story: four in five landlords say they'll be more choosy about who they let to, and two-thirds intend to raise rents in response to the new rules."
He adds: "This mismatch between perception and reality underlines how complex PRS reform can be: policies designed to protect tenants could, unintentionally, make it harder for them to find and afford a home."
Landlords set to leave the PRS
The news that 71% of landlords plan to lift rents coincides with findings from Simply Business, which warns that more than a third (39%) of landlords are considering leaving the rental market entirely within the next year.
According to the insurer's 2025 Landlord Report, the Renters' Rights Act is a major concern for one in four landlords (26%).
They see the new law as being aimed at protecting tenants but adding to uncertainty for landlords managing homes for nearly five million UK households.
Despite this, 39% still see letting property as worthwhile, while 26% remain unsure about the future.
Julie Fisher, the chief executive of Simply Business, said: "There's a sense of trepidation amongst the nation's landlords.
"The long-awaited Renters' Rights Act is set to drastically change the rental market in the next 12 months."
She added: "But many landlords (76%) fear the new regulations won't increase standards in the market the way the government hopes."
Student landlords are worried
The managing director of Accommodation for Students, Simon Thompson, said: "The Renters' Rights Act may have been designed to create stability for tenants, but in the student sector it's causing widespread concern.
"Landlords who once operated with predictable yearly tenancies are now unsure how open-ended agreements will work in practice."
He added: "We're seeing student landlords take a far more cautious approach to new tenancies and some are assessing whether it's worth staying in the market at all.
"The danger is that well-intentioned reform could reduce supply just when students need affordable accommodation the most."
