The introduction of the Renters’ Rights Act is expected to accelerate change across the private rented sector, creating new pressures and opportunities for both mortgage brokers and landlords. New research from Rely shows landlords are already navigating rising costs and tightening regulation, with many adjusting rents, absorbing expenses or seeking professional advice to remain competitive.
Adrian Moloney, Group Lending Distribution Director, Rely, commented: “The Renters’ Rights Act coming into force marks an immediate inflection point for the private rented sector, landing at a time when landlords are already navigating rising costs, regulatory change and a more complex operating environment.
Our latest Landlord Leaders research underlines just how stretched the sector already is. Virtually all landlords (97%) have seen costs rise in the past year, yet a majority (62%) remain optimistic about operating in the sector. That resilience is already shaping behaviour: over half (56%) have increased rents, while others are absorbing costs (36%) or turning to professional advice (32%) to stay compliant and competitive.
With the Act now taking effect, these pressures are set to intensify rather than ease. Landlords are not only managing higher costs, but also adapting to a more prescriptive regulatory framework in real time. This will accelerate decision-making across portfolios, from pricing and investment to whether to remain in the sector at all.
At the same time, structural challenges remain. Tenant affordability (47%) and achieving a strong return on investment (45%) are already key constraints, and the new framework is likely to bring these tensions into sharper focus. In practice, this means landlords will need to balance compliance with commercial viability more actively than before.
The immediate priority for landlords is execution. Ensuring tenancy agreements, processes and property standards are aligned is no longer a future consideration; it is an operational requirement from day one. Those who are prepared will be able to adapt quickly; those who are not may face disruption.
What we are likely to see in the coming months is a widening gap within the sector. Landlords who are well-capitalised, well-advised and already operating at scale will be better positioned to absorb change and continue investing. Others, particularly smaller or less prepared landlords, may reassess their position as compliance costs and administrative demands increase.
Ultimately, the Act reinforces an existing direction of travel. The private rented sector is becoming more professional, more regulated and more operationally demanding. While that should help raise standards and improve tenant outcomes, it also raises the bar for participation.
In the near term, the key question is not whether landlords can adapt, but how quickly. The sector has shown resilience, but the combination of cost pressure and regulatory change means **the next 6–12 months will be critical in shaping its future structure and supply.”
