"It’s vital that all landlords assess how the Act will impact their lettings activity, to protect themselves and ensure they’re able to continue offering a positive renting experience for their tenants"
- Jon Cooper - Aldermore
While 85% of landlords report making a profit from their portfolios, with only 6% operating at a loss, many are apprehensive about the year ahead, according to new market analysis from Aldermore.
The Renters’ Rights Act will begin to roll out in phases from 1 May 2026. Recent polling by Pegasus Insight, provided to Aldermore, highlights the concerns landlords have about the legislation. Three-quarters (75%) believe the Act will negatively affect them personally, while more than eight in 10 (84%) expect it to harm the private rented sector more broadly.
Jon Cooper, director of mortgages at Aldermore (pictured), said: “What’s clear from the research is that most landlords have legitimate concerns about how the Renters’ Rights Act will impact their property portfolios. Importantly, only 1% of landlords surveyed are unaware of the Renters’ Rights Act, with the vast majority highly aware of the potential implications."
"It’s vital that all landlords assess how the Act will impact their lettings activity, to protect themselves and ensure they’re able to continue offering a positive renting experience for their tenants.”
The survey identified key worries among landlords, including potential court backlogs for evictions (91%) and a 2% rise in income tax for those holding properties in their personal names (88%). More than eight in 10 landlords (84%) said they will need to be more selective about tenants, and over seven in 10 (72%) may increase rents to offset potential losses.
The research also found that expectations for rental yields have dropped to a five-year low, while the share of landlords reporting strong tenant demand has fallen to 61%, down 7% from the previous quarter and 16% year-on-year.
Cooper added: “The sector faces challenges, let’s be upfront about that. But landlords are highly resilient. They’re also a cornerstone of the UK’s housing supply. The Renters’ Rights Act is being introduced with noble objectives in mind, and the vast majority of the UK’s two million or so landlords will agree that supporting their tenants is a key component of what they do."
"However, this research does highlight the tensions many landlords feel when it comes to potential knock-on effects of the Act coming into force. Maintaining an open dialogue between all parties and assessing the effectiveness of the Act as it beds in over time will be of the utmost importance.”
