Nearly half of UK landlords are preparing to increase rents in direct response to the Renters’ Reform Bill, according to new research from Landbay, a leading buy-to-let lender. The findings reveal that 44% of landlords intend to raise rents due to concerns over new regulations—including restrictions on rent increases and the scrapping of Section 21 evictions.
With rent rises of 6% on average, significantly above the government’s official 3.6% inflation rate, tenants could see an extra £74 per month added to their rent—particularly in the South East and North West, where rental markets remain competitive and demand continues to outpace supply.
“This sharp rise in rents in the short term shows the unintended consequence of this new regulation,” said Rob Stanton, Sales and Distribution Director at Landbay.
Landlords with mid-sized portfolios most likely to act
Landbay’s survey shows that landlords with four to ten properties are leading the charge, with 32% of them planning to increase rents specifically because of the Renters’ Reform Bill. Those with 16 to 30 properties follow closely at 28%, highlighting that it’s not just corporate-scale landlords responding—individual portfolio landlords are also acting to protect returns.
Under the proposed legislation, landlords will be limited to one rent increase per year, restricted to the market rate—defined as what a property would reasonably achieve if newly listed. Tenants, however, will have the right to challenge rent increases at a First-tier Tribunal, raising concern over delays and legal complexity for landlords already dealing with lengthy court backlogs.
The rules are creating a defensive atmosphere in the landlord community. Many are adjusting rents now to future-proof against what they see as tightening control over their income and fewer protections against tenant arrears or anti-social behaviour.
“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,” Stanton said.
Uncertainty over section 21 fuels landlord frustration
The removal of Section 21—so-called ‘no-fault’ evictions—continues to dominate the reform debate. In a previous Landbay survey, 75% of landlords said they were concerned about how its removal would affect their ability to regain possession of their property in cases of rent arrears, anti-social conduct, or changes in personal circumstances.
While the government frames the Bill as a fairness upgrade for tenants, many landlords feel it is eroding the practical protections that make the rental sector viable. There’s widespread fear that this erosion could reduce landlord confidence, leading to fewer properties on the market, pushing rents even higher.
“Any good and reasonable landlord will agree with protecting the rights of tenants,” said Stanton, “but they also believe that the rights of the property owner should be protected too.”
Rent increases expected to continue into 2025
Looking ahead, 89% of landlords surveyed by Landbay plan to raise rents within the next 12 months, with more than a third targeting increases of between 3% and 10%. While some 11% say they don’t plan to raise rents, the overwhelming trend suggests further inflationary pressure is inevitable.
In response, lenders like Landbay are working to adapt. “While we may not be able to influence government policy or regulation,” Stanton explained, “our role as a BTL lender is to ensure our product range is competitive and delivers exactly what landlords need—whether that’s for purchases or refinancing.”
As the Renters’ Reform Bill edges closer to becoming law, landlords are left weighing their options. Some will increase rents, others may streamline their portfolios, while many will seek professional support to navigate what’s shaping up to be a more complex legal environment.
