New research from mortgage specialist Pegasus Insight suggests the Renters Rights Act could drive rental prices higher as landlords adjust to tougher regulations and increased compliance costs.
According to Pegasus Insight’s Landlord Trends Q3 2025 report, 81% of landlords expect the new legislation will make them more selective when choosing tenants, while 71% plan to raise rents to offset the additional expenses and restrictions.
The survey also found that 73% of landlords believe the Act will negatively affect their own letting activity, and 81% think it will harm the wider Private Rented Sector (PRS) overall.
Mark Long, founder and managing director of Pegasus Insight, said:
“The Act represents one of the most significant shifts in the private rented sector in decades, and many landlords are proceeding with caution.
Faced with tighter rent review limits and uncertainty around evictions, they’re taking pre-emptive steps to protect income and manage risk. While these are rational business decisions, they could add to the affordability challenges tenants are already experiencing.”
The research also highlights a widening gap between landlord and tenant expectations. Landlords foresee rising costs and reduced flexibility, while many tenants view the reforms as a positive step.
Long added:
“Nearly half of renters believe the Renters Rights Act will benefit them, largely because of stronger protections and caps on rent increases.
But our Landlord Trends data tells a different story: four in five landlords say they’ll become more selective about tenants, and two-thirds intend to raise rents in response.
This disconnect shows how complex PRS reform can be—policies designed to support tenants may unintentionally make it harder for them to find and afford suitable housing.”
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