Since receiving Royal Assent in October 2025, it has been confirmed that the Renters’ Rights Act will be implemented from May 2026. Landlord Today has revealed widespread concerns amongst landlords regarding consequences of the new Act.
Rent inflation
One agent from Skegness says they were “instructed to raise rents by 1.5% above inflation to fund compliance with the Renters Rights Act”, says Landlord Today.
The agent says: “Prior to the RRA being approved, landlords were looking at rent increases circa Retail Price Index (RPI).”
“As details emerge of what has been agreed in Parliament and on what timescale, we are instructed to increase by RPI +1.5% to help with anticipated costs of compliance in the next 12 months.”
Supply and demand imbalance
A West Midlands agent told Landlord Today: “Supply/demand imbalance as buy to let investors leave the market is forcing rental property to remain very scarce.”
They warned others to: “Expect many Section 21’s to be issued in the early part of 2026.”
This was backed up further by a Huddersfield agent that noted: “Fewer properties available as more landlords continue to sell.”
And Landlord Today reported of a Hereford agent casting out warnings: “Many investors are selling up their buy to let investments due to government overreach and taxes.”
Meanwhile a UK Residential Market Survey from RICS in December 2025 shows that the lettings market remains under pressure.
Landlord Today says: “Tenant demand weakened further in December, falling 27%, but new landlord instructions stayed “deeply negative” – down 39%.
“The institution says this underlines persistent supply constraints.”
As a result, the landlord site says they expect to see rents continuing to rise, “forecast at around 3% on average over the next 12 months.”
To find out more you can read the full December 2025 RICS UK Residential Market Survey here.
