Renters’ Rights Bill could undermine confidence among landlords warns HomeLet

The Renters’ Rights Bill could have a detrimental effect on the PRS as landlords leave the market and rents continue to rise, according to a tenant referencing firm.

The latest HomeLet rental index reveals average UK rents increased to £1,313 in July 2025, up 0.4% month-on-month.

HomeLet warns that although the Renters’ Rights Bill is well-intentioned, it could undermine confidence among landlords.

Knock-on effects that are detrimental for all parties

According to HomeLet, rents outside of London rose in line with the national average, reaching £1,132, an increase of 0.4% month-on-month and 1.7% annually. While overall growth remains steady, several regions posted more significant changes.

In Scotland, rents rose by 2.1% to £1,017 and in Wales by 1.6% to £933.

HomeLet warns rents could rise further as market uncertainty and landlords leaving the sector due to new legislation.

Will Eastman, head of legal at HomeLet and Let Alliance, said: “Rental prices continue to edge upwards, and market uncertainty appears to be playing a role. Legislative reform, rising costs, and shifting risk factors are prompting some landlords to reconsider their long-term plans, which could impact the supply of rental homes.

“The proposed Renters’ Rights Bill is one of several changes that, while well-intentioned, may inadvertently reduce confidence among some landlords. The Renters’ Rights Bill could have knock-on effects that are detrimental for all parties.”

Exploring alternative ways to manage risk

However, Mr Eastman says that while some landlords are leaving the sector, others are managing risk through rent guarantee insurance, which provides protection against loss of rental income if tenants fail to pay.

Mr Eastman adds: “Although some landlords may choose to leave the sector, many are instead exploring alternative ways to manage risk.

“Rent Guarantee Insurance, for example, is becoming more popular as a way for landlords to protect their rental income as they look for stability in an evolving market.”