Survey reveals pre-emptive increases in response to upcoming rent controls
A significant proportion of buy-to-let landlords in the UK are planning rent hikes in anticipation of the government’s incoming Renters’ Rights Bill, according to new research from mortgage lender Landbay.
The survey found that 44% of landlords expect to increase rents due to the legislation. Those with mid-sized property portfolios — between four and 10 properties — were most likely to raise rents (32%), followed by landlords with 16 to 30 properties (28%).
Nearly nine in 10 landlords surveyed said they plan to increase rents over the next year. More than a third expect hikes between 3% and 10%, while only 11% have no plans to raise rents at all. Regional analysis indicates the South East will see the most rent increases, with the North West also set to be heavily affected.
Average planned increases are around 6%, well above the current private rental sector inflation rate of 3.6% reported by the Office for National Statistics. For tenants, this would mean paying about £74 more each month on average.
Under the Renters’ Rights Bill, landlords will be restricted to one rent increase per year, and it must align with the market rate. Tenants will be able to appeal the rise through a first-tier tribunal if they believe the amount is excessive.
Landbay suggests the planned increases stem not only from expected compliance costs but also broader concerns about regulatory uncertainty — especially around the removal of Section 21 no-fault evictions. In a previous Landbay poll, 75% of landlords voiced concern over their ability to evict problematic tenants without Section 21.
“This sharp rise in rents in the short term shows the unintended consequence of this new regulation, as landlords look to act now and pre-emptively raise rents in fear of future cost implications or difficulties, and to protect their investments,” said Rob Stanton (pictured), sales and distribution director at Landbay. “By forcing the hand of landlords in this way, there is a real risk of worsening the cost-of-living crisis that so many private renters are currently facing.
“Any good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the property owner should be protected too. There’s no doubt we need to balance reform with support and safeguards for landlords to make sure that the rental market continues to play the important role it does in the UK’s housing mix.”
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