Landlords to continue thriving despite the Renters’ Rights Bill?

The private rented sector continues to flourish, with landlords poised to maintain profits despite the introduction of the Renters’ Rights Bill, one firm says.

According to a study by FCC Paragon, the legislation will not lead to lower rents, ensuring PRS landlords will remain financially robust.

It says the average monthly rent in Great Britain has surged to £1,338, reflecting an 8.1% rise –  or £100 – between January 2024 and February 2025.

London leads the charge with a striking 9.9% increase, pushing average rents to £2,235 per month, a £201 annual jump.

Other regions, including the North West (9.3%), North East (8.7%) and Wales (8.6%), also report significant growth, while Yorkshire and Humber trails at 4.9%.

Profitability of being a landlord

Bekki Leaves, the firm’s managing director, said: “The Renters’ Rights Bill will not hamper the profitability of being a buy to let landlord.

“Nor will it slow the rising price of rent in Britain.

“With regards to rent prices, the key focus of the RRB appears to be stopping landlords from forcing evictions by increasing rent to an unacceptable level that is out of step with fair market rates.”

She added: “But by no means does it mean that landlords cannot increase rent for existing tenants to match increases in that fair market value.

“As such, they are going to be no worse off with the RRB in place than they would be without it.”

Bill to protect tenants

Among the Bill’s aims is to protect tenants by preventing landlords from imposing excessive mid-tenancy rent hikes as a covert method of eviction.

Tenants will have the right to challenge increases deemed above local market rates.

However, landlords retain the freedom to adjust rents in line with fair market values, ensuring their income aligns with regional trends.

FCC Paragon says that London’s landlords can justifiably raise rents by up to 9.9% for tenants who signed tenancies in early 2024.

Also, the government’s refusal to impose rent controls underscores its commitment to balancing tenant protections with the financial viability of the rental market, the firm says.