Nearly half of private landlords in the UK increased their tenants’ rent at least once over the past 12 months, with higher-earning property owners accounting for the majority of those who raised prices, according to new research.
A survey conducted by the Tenancy Deposit Scheme Charitable Foundation (TDS) found that 48% of landlords had increased rents during the period. Of those who raised rents, 55% earned at least £100,000 annually from property and other income sources.
The research also found that 60% of landlords who increased rents owned five or more properties, while 54% employed a letting agent.
Landlord Incomes Rise as Property Costs Increase
The TDS Foundation’s findings showed that almost seven in 10 landlords earned more than £50,000 in annual pre-tax income. Approximately 31% reported earning more than £100,000 a year.
The proportion earning above £50,000 increased from 51% two years ago to 69%, according to the research.
Dr Jennifer Harris, head of policy, research and social impact at The Dispute Service Group, said landlords who earned more or owned larger property portfolios could be more likely to view letting as a business.
She said 30% of landlords operating houses in multiple occupation (HMOs), 41% of those with larger portfolios and 28% of those earning more than £100,000 considered their role a full-time or part-time business.
Landlords earning more than £100,000 were also twice as likely as landlords overall to own 10 or more properties, at 12% compared with 6%. They were more likely to own HMOs, with 44% doing so compared with 27% of landlords across the survey.
Harris said landlords who treated property letting as a business might be more likely to review rents systematically rather than leave them unchanged for extended periods.
More Landlords Kept Rents Unchanged
Despite the proportion of higher-earning landlords increasing rents, the overall number of landlords reporting rent increases fell slightly.
Half of the more than 2,000 private landlords surveyed said they had kept rents unchanged over the previous 12 months. This compared with 39% in the previous year’s survey.
Landlords who increased rents most commonly cited higher operating costs, rising property maintenance expenses and increases in the cost of living.
Harris said rental decisions were influenced by pressures affecting both landlords and tenants.
She said many landlords wanted to retain good tenants and recognised the financial difficulties tenants faced, while also dealing with rising running and maintenance costs.
Renters’ Rights Act Introduces Annual Limits on Increases
The Renters’ Rights Act came into force on May 1, 2026, introducing changes to how landlords can increase rents.
Under the legislation, landlords can raise rent only once a year, and the proposed amount cannot exceed the open-market rent for the property.
Landlords must provide written notice of a proposed increase at least two months before it takes effect. Tenants who believe the new rent is above market rates can challenge it through the First-tier Tribunal.
Existing rent review clauses in tenancy agreements also became void from May 1, meaning landlords could no longer rely on those clauses to increase rents after that date.
The TDS survey may therefore include landlords who brought forward rent increases before the new rules took effect.
Rent Arrears and Repayment Arrangements
The research found that 26% of landlords had at least one tenant in rent arrears, down slightly from 29% in the previous year’s survey.
Landlords dealing with arrears most commonly said they spoke directly with tenants about their options or provided information about their rights and available support services.
A further 21% said they had agreed repayment plans with tenants, while 17% had offered rent-free periods or temporary rent reductions to provide financial relief.
Tribunal Orders Landlord to Cut Rent by £200 a Month
A recent tribunal ruling has drawn attention to how rent disputes can be decided under the current system.
In the case, a tenant challenged a proposed £50 monthly increase that would have raised the rent from £1,650 to £1,700.
After considering arguments from both sides, the tribunal determined that the market rent was £1,450 per month. The landlord was therefore ordered to reduce the rent by £200 from the original amount and by £250 from the proposed figure.
Labour housing minister Matthew Pennycook highlighted the case on X on Tuesday, presenting it as an example of the Government standing up for renters.
Tenants had the ability to challenge rent increases before the Renters’ Rights Act, but previously had to demonstrate that the proposed rent was significantly higher than the amount a landlord could reasonably expect for a comparable property.
Tenants can also challenge the rent they pay, regardless of whether an increase has been proposed, through a tribunal within six months of moving into a property.
An application to challenge a rent increase costs £47. The tribunal can order the landlord to reimburse the fee if the tenant succeeds.
Landlord Representative Raises Concerns Over Tribunal Powers
Ashley Osborne of Lexit, a service that helps landlords analyse buy-to-let properties, criticised the outcome of the recent case.
He said the landlord had requested an additional £50 a month, but the tribunal reduced the rent by £200 below the amount originally agreed by the two parties.
Osborne said the tribunal described the flat as attractive and of a high specification but nevertheless set a lower market rent based on its assessment of comparable properties.
He argued that the ruling demonstrated how a tribunal’s assessment could override a rental price agreed between a landlord and tenant.
Osborne also said he had previously warned that the Renters’ Rights Act could amount to rent control introduced indirectly, arguing that the latest case illustrated his concerns.
Mortgage Rates Rise Amid Inflation Concerns
Mortgage rates have also increased as the conflict involving Iran has pushed up inflation expectations and weakened hopes of interest rate cuts.
People buying a property or approaching the end of a fixed-rate mortgage deal have been advised to explore available options.
This is Money has a partnership with fee-free mortgage broker London & Country Mortgages (L&C), which provides mortgage advice and access to deals from more than 90 lenders.
The broker’s services include a mortgage rates calculator and an online Mortgage Finder to help borrowers compare available products based on their circumstances.
L&C is authorised and regulated by the Financial Conduct Authority. Most buy-to-let mortgages are not regulated by the FCA, and borrowers risk repossession of their property if they fail to keep up with mortgage repayments.
