Nearly half of landlords reported increasing their tenants' rent in the past year, according to research from the Tenancy Deposit Scheme Charitable Foundation (TDS). The study indicates that a majority of these landlords, 55%, earned £100,000 or more per year from various sources, including their rental properties.
Of the landlords surveyed, 48% stated they had raised rents at least once in the last 12 months. Furthermore, 60% of these landlords owned five or more properties, and 54% utilized a letting agent. The TDS Foundation's research also revealed that almost 70% of landlords earn over £50,000 in pre-tax income annually, with approximately one-third earning over £100,000, significantly higher than the UK's median pre-tax household income of £38,948.
The Renters' Rights Act, which became effective on May 1, 2026, now permits landlords to raise rents only once per year, and tenants have strengthened rights to dispute such increases at tribunals. Before this legislation, some landlords reportedly increased rents to preempt the new rules.
Rent Increases and Tenant Challenges
The most frequently cited reasons for rent increases by landlords included escalating running costs, increased property maintenance expenses, and the rising cost of living. Despite these pressures, the overall number of landlords increasing rents saw a slight decrease compared to the previous year. The survey of over 2,000 private landlords found that 50% kept rents unchanged, a rise from 39% in the prior year.
A recent legal case highlighted the implications of the new tenant protections. A tenant successfully challenged a proposed £50 monthly rent increase. The tribunal, however, ruled that the market rent for the property was £1,450 per month, leading to an order for the landlord to reduce the rent by £200 per month, below the originally agreed rate.
This outcome has raised concerns that the government might be implementing rent controls indirectly. While tenants could previously challenge rent increases if they were significantly above market rates, the new legislation and subsequent case suggest a tribunal's assessment of market rent can now override previously agreed tenancy terms. The Renters' Rights Act mandates landlords to provide tenants with at least two months' written notice of a proposed rent increase, and any increase must not exceed the open market rent. Tenants can challenge rent hikes they believe are above market rate at the first-tier tribunal.
Landlord Arrears and Support
The survey also indicated a slight decrease in rent arrears, with 26% of landlords reporting at least one tenant in arrears, down from 29% the previous year. In cases of arrears, landlords most commonly engaged directly with tenants to discuss options or provided information on available support services. Twenty-one percent of landlords reported agreeing to repayment plans, and 17% offered rent-free or reduced-rent periods to assist tenants facing financial difficulties.