80% of landlords fear Renters’ Rights Act impact as sector braces for change

01 May 2026

80% of landlords are concerned about the Renters’ Rights Act
78% say it will make them more selective about who they let to, while 75% of those planning to raise rents cite the legislative changes
Two thirds of tenants plan to stay in their current property for a further 4.3 years on average

Friday 1st May

Landlords across the UK are bracing for significant change as the first phase of the Renters’ Rights Act (RRA) comes into force today, with new research revealing widespread concern about its potential impact on the Private Rented Sector.

The latest Q1 2026 Landlord Trends data from Pegasus Insight shows that 80% of landlords are concerned about the new legislation; 70% believe the RRA will have a negative impact on their lettings business, while 77% expect it to negatively impact the market overall.

These concerns are already translating into behavioural change. Four in five landlords say the Act will make them more selective about who they let to, while 75% of those planning rent increases say they will do so to offset the anticipated impact of the reforms.

Much of this anxiety centres on a perceived loss of control, particularly around the removal of ‘no fault’ evictions, the potential for delays in regaining possession, and greater constraints on how rents are managed over time.

Tenant behaviour tells a different story

However, separate Tenant Trends research carried out by Pegasus in Q1 2026 suggests that, in practice, the sector may already be far more stable than many landlords anticipate

The typical renter has already spent more than five years in the same home, and two thirds of tenants intend to stay in their current property for another 4.3 years on average.

Instances of forced movement also remain relatively low, with just 3% of tenants reporting that they have been served an eviction notice in the last 12 months and only 0.6% contesting an eviction notice.

Taken together, the findings point to a clear disconnect: while landlords are preparing for increased churn and uncertainty, most tenants are already behaving like long-term occupants, valuing stability and continuity in their housing.

This mismatch between landlord expectations and tenant behaviour has important implications for the future shape of the market.

If landlord concerns continue to drive more cautious letting strategies and upward pressure on rents, there is a risk that behavioural responses to the legislation could have a greater short-term impact on the sector than the reforms themselves.

At the same time, the fundamentals of the Private Rented Sector remain underpinned by stable tenancies and consistent demand, with long-term occupancy continuing to support reliable rental income.

Mark Long, founder and managing director of Pegasus Insight, commented:

“Landlords are responding to a perceived shift in control, and that is already influencing decisions around rents and tenant selection ahead of implementation.

“But the tenant data tells an important story. Most renters are settled, they stay for long periods and relatively few tenancies end in dispute or eviction.

“For lenders and investors, that stability is critical, underpinning income predictability and reducing risk across the sector.

“The key question now is whether confidence returns once the new framework beds in, or whether caution continues to shape landlord behaviour in the longer term.”