It’s been four months since the majority of the Renters’ Rights Act was implemented. Has there been a fall out? Numerous surveys have tracked the changes.
A direct link has been made between the increasing complexity of self-management and a rising number of landlords turning to letting agents. A survey of National Residential Landlords Association (NRLA) members by Pegasus Insight found 66% are now partnering with a professional in some capacity. The NRLA says this figure is the highest recorded for two years.
Professional management comes at a cost and that squeezes profit margins. A survey by Goodlord found one in four landlords (23%) has reported higher letting agent fees since 1st May 2026.
Landlords sticking with self-management are also feeling the strain. Half of landlords questioned had noticed an increased compliance burden as a result of new legislation. A further 29% had been affected by higher compliance and insurance costs, while 10% had experienced longer void periods between tenancies.
For some, regulation changes are proving too much. The latest Private Rented Sector Review from the Deposit Protection Service polled landlords immediately after the Renters’ Rights Act came into force. The results found the proportion of landlords planning to sell some or all of their portfolio had risen to 56%. This is up from 53% in October 2025.
Among smaller-scale landlords, 31% said they intend to sell all their properties and leave the rental market. This figure was 15% for landlords with three or more buy-to-lets.
Whether you’re reading HomeLet’s latest rental index or have seen The Office for National Statistics’ figures, there is no escaping rent rises. Agents are united in the opinion that the Renters’ Rights Act is forcing landlords to increase what they charge.
Sentiment was confirmed in Handelsbanken's 2026 Property Investor Report. It found 63% of all property investors said higher overall costs had caused them to raise rents, while 44% said the Renters’ Rights Act might prompt them to raise rents earlier than planned.
While pessimists will say landlords are profiteering due to supply issues, the truth is many are charging more to just break even. Mortgage rates, insurance, repairs and maintenance all cost more today. Soon, landlords will pay annual subscriptions to join a new ombudsman and a database.
And while raising rents sounds like a shortcut to extra income, 56% of investors taking part in Handelsbanken's survey were reporting more tenant arrears or late payments - up from 48% in 2025.
Landlords, especially those with portfolios, are paying particular attention to taxation. An increasing number are turning to limited company holding status in a bid to keep their buy-to-lets viable.
Lendlord’s quarterly UK BTL Market Report has been tracking the trends. In its Q1 2026 report, 44.1% of all buy-to-let properties were limited company-owned. This metric had climbed to 45.1% in its Q3 2026 report.
As a refresher, landlords who hold buy-to-lets in their personal name pay income tax at 40% for higher rate tax payers and 45% for additional rate tax payers. Landlords should note these rates are changing in April 2027 to 42% and 47%, respectively.
Landlords holding buy-to-lets in limited companies pay between 19% and 25% on rental profits, depending on the amount. Cost savings can be substantial, even after paying stamp duty, legal costs and potentially capital gains tax when selling to their limited company.
Many investors turn to property for the long-term appreciation and for good reason. For years, we have become accustomed to year-on-year house price increases but recent Zoopla analysis showed landlords can’t bank on this.
After analysis of 32 million UK home values between 2021 and 2026, the portal found just 14% of properties increased in value during every one of those five years. Instead, we have entered a market where values might flatline one year, rise the next and decrease the year after. If you’re cashing out, this makes the timing of a sale more crucial than ever.
Where is the market currently? Zoopla’s latest house price index focuses on the holy trinity of sales success:
The portal’s deeper dive reveals the type of buy-to-let you have and where in the country it’s located matters. Flats/maisonettes have lost an average of -£3,040 in value over the last year. Landlords in the South may get a shock if they request an open market valuation today. Annual house prices in some regions are dipping – down 1% in London, 0.4% in the South West, 0.3% in the South East and 0.1% in the East of England.
If the Renters’ Right Act has made you question your future in buy-to-let, contact Open Property Group. We speak to landlords daily about their yields, current portfolio worth and exit options. If you’ve already decided to sell, get your no-obligation cash offer now.
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