More than eight in 10 landlords believe the Renters’ Rights Act will damage the private rented sector, while three-quarters expect it to have a negative impact on them personally, according to new research conducted for specialist lender Aldermore. With the Act set to take effect from May, the findings reveal deepening anxiety across the sector about court backlogs, rising costs and the prospect of tighter margins ahead.
The survey found that 84 percent of landlords believe the legislation will harm the private rented sector as a whole, while 75 percent expect a direct negative effect on their own lettings business. The scale of concern is striking – and it is driving behavioural change before the Act even takes effect.
Court backlogs and tax rises top landlord concerns
Among the specific worries, potential backlogs in the court system for possession cases ranked highest, with 91 percent of landlords expressing concern. The abolition of Section 21 “no-fault” evictions under the Act means landlords will rely entirely on Section 8 grounds, which require court proceedings – and the system is already under significant strain.
The two percent rise in income tax for landlords holding properties in personal names was the second most pressing concern, cited by 88 percent of respondents. Taken together, these two issues – slower access to possession and higher tax bills – represent a double squeeze on landlords operating outside limited company structures.
More than eight in 10 landlords (84 percent) said they would need to be more selective about the tenants they let to, while over seven in 10 (72 percent) said they would consider increasing rents to offset losses.
Rental yields hit five-year low
The research also revealed that expectations for rental yields have fallen to their lowest point in five years. The share of landlords reporting strong tenant demand dropped to 61 percent – down seven percentage points from the previous quarter and 16 percentage points year-on-year.
The decline in demand sentiment, combined with weakening yield expectations, suggests landlords are pricing in a more challenging operating environment for the remainder of 2026. For investors who have relied on rising rents to offset higher mortgage costs, a cooling rental market adds another layer of pressure.
Aldermore calls for ongoing dialogue
An Aldermore spokesperson said the Renters’ Rights Act was being introduced with noble objectives in mind, and that the vast majority of the UK’s estimated two million landlords would agree that supporting tenants was a key component of what they do.
“However, this research does highlight the tensions many landlords feel. 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.”
The call for continued engagement reflects a broader industry view that the Act’s success will depend not just on its provisions but on how they are implemented – particularly around court capacity and enforcement resources.
What landlords should prepare for before May
For property investors, the message from the data is clear: preparation matters. The shift from Section 21 to Section 8 means landlords will need strong tenancy agreements, detailed inventories and comprehensive records of any breaches. Those who have relied on the relative simplicity of no-fault evictions face a steeper learning curve.
The finding that 72 percent of landlords plan to raise rents in response to the Act is likely to concern policymakers. If the legislation intended to protect tenants triggers widespread rent increases, the unintended consequences could undermine its core objectives.
Editor’s view
The numbers speak for themselves. When 84 percent of an industry expects harm from incoming legislation, the government cannot afford to dismiss it as resistance to change. The Renters’ Rights Act may well achieve its aims – but only if court capacity keeps pace. Without that, landlords and tenants alike will pay the price.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 5 February 2026
Sources: Aldermore, Pegasus Insight landlord research Q4 2025
Related reading: Government seeks landlords to pilot Renters’ Rights Act database
