Landlords raise rents due to legislative uncertainty

More than half of landlords (51%) raised rents during the last 12 months as many consider leaving the market, according to a new survey.

Findings by The Deposit Protection Service (DPS) reveal that upcoming legislative changes are a key factor behind landlords considering selling their properties.

The data also shows that some landlords are taking a wait-and-see approach ahead of the Renters’ Rights Act coming into force.

Landlords consider selling due to RRA

According to the data, 53% of landlords are considering selling some or all of their properties in the next one to two years, the same as in March 2025.

The DPS says landlords considering selling cited proposed changes in legislation as the key factor, at 89%. Capital Gains Tax changes remain influential for 90%, and the Renters’ Rights Act is a consideration for 89%.

The findings also reveal 17% of landlords planned to increase rents during the next six months, and a quarter of landlords (25%) said that they planned to increase rents within six to 18 months.

However, the data also shows 24% of landlords planned to keep rents unchanged and the DPS says there has a period of stability with the Bank of England cutting interest rates to 3.75%, which in turn has driven down the cost of mortgages and the need for landlords to increase rent to cover rising mortgage costs.

Landlords take a wait-and-see approach

Matt Trevett, managing director at The DPS, said: “Our data show that rental values in England, Wales and Scotland are stable at the moment.

“Landlords are less inclined to raise rents in the short term because their mortgage and operating costs have themselves stabilised.

“There has been an increase in the proportion of landlords looking to increase rents in the next 18 months.

“However, overall, the latest data suggest most landlords are adopting a ‘wait and see’ approach ahead of the implementation of the Renters’ Rights Act.”

The report also reveals how the average deposit value is now £1,195, up £45 from £1,150 in September 2024.

The rise suggests an average UK monthly rent of around £1,035, an increase of 3.9 percentage points between September 2024 and September 2025.