Fewer landlords are planning to raise rents over the next year, according to new research, although those who do intend to push through increases remain above historic norms.
The latest Landlord Trends report from Pegasus Insight, a mortgage market research firm, shows that 61% of landlords expect to raise rents in the next 12 months, down sharply from 78% a year ago.
Among those planning rises, the average increase is 6%, compared with 5% at the same point in 2024.
The findings align with official figures. The Office for National Statistics reported earlier this month that average UK private rents climbed 5.7% in the year to August 2025, reaching £1,348 a month.
AFFORDABILITY LIMITS
The report signals a potential turning point in the rental market, with affordability pressures beginning to curb rent inflation, even as landlords weigh rising costs and regulatory change.
Analysts suggest the moderation in landlord intentions reflects both affordability limits among tenants and the fact that many rents have already been adjusted to current market levels.
“Running costs remain the most cited reason for planned increases.”
Nevertheless, running costs, from compliance and maintenance to mortgage servicing, remain the most cited reason for planned increases and highlighting the continued squeeze on landlord margins.
The looming Renters’ Rights Bill, expected to receive Royal Assent by November and come into force from mid-2026, is also shaping behaviour.
The legislation will cap rent increases at once a year and abolish Section 21 “no-fault” evictions, while introducing open-ended tenancies.
RENTERS’ RIGHTS BILL
Mark Long, founder and director of Pegasus Insight, says: “Landlords remain under pressure from higher costs and policy change, and the instinct to raise rents remains strong.
“But our research shows that the market may be reaching an affordability ceiling. When rent levels rise too far, demand can falter – this is price elasticity in action, and many landlords recognise that pushing further risks losing tenants or facing longer voids.
“At the same time, the forthcoming Renters’ Rights Bill is influencing decisions now.”
And he adds: “With annual rent increase limits and tribunal challenges on the horizon, landlords are reviewing their portfolios carefully.
“This is a delicate period for the Private Rented Sector: if costs keep rising as regulation tightens further, we may see a fresh wave of rent inflation despite the moderation in intentions revealed by our latest research.”
