Fewer landlords plan to lift rents than a yr in the past, suggesting the market is lastly slowing down, the Landlord Traits report by mortgage market specialist Pegasus Perception has discovered.
Some 61% of landlords plan to lift rents within the subsequent 12 months, down from 78% a yr in the past.
For these intending to extend rents, the common anticipated rise is 6%, in contrast with 5% in Q2 2024.
Mark Lengthy, founder and director of Pegasus Perception, stated: “Landlords stay underneath stress from greater prices and coverage change, and the intuition to lift rents stays robust. However our analysis exhibits that the market could also be reaching an affordability ceiling.
“When lease ranges rise too far, demand can falter – that is value elasticity in motion, and lots of landlords recognise that pushing additional dangers shedding tenants or dealing with longer voids.
“On the identical time, the forthcoming Renters’ Rights Invoice is influencing selections now. With annual lease improve limits and tribunal challenges on the horizon, landlords are reviewing their portfolios fastidiously.
“It is a delicate interval for the Non-public Rented Sector: if prices maintain rising as regulation tightens additional, we might even see a recent wave of lease inflation regardless of the moderation in intentions revealed by our newest analysis.”
Rents rose by 5.7% within the yr to August 2025, reaching £1,348 a month.
The looming Renters’ Rights Invoice (RRB) will introduce limits on lease will increase to as soon as per yr, alongside wider reforms such because the abolition of Part 21 and the transfer to open-ended tenancies.
With Royal Assent anticipated by November and implementation possible from mid-2026, many landlords seem like performing pre-emptively, guaranteeing their lease ranges are sustainable earlier than the brand new framework takes impact.
