New research commissioned by Aldermore paints a complex emotional picture for the country’s landlords.
Whilst 85% of landlords overall are deriving a profit from their portfolios – with only 6% making any kind of loss – the data elsewhere demonstrates that most are feeling nervy about the year ahead.
The introduction of the Renters’ Rights Act will begin in phases from 1 May 2026, and this latest polling delves into the concerns many landlords have with the enactment of the Act.
The data, provided to Aldermore by Pegasus Insight, reveals that three-quarters of landlords (75%) believe the Act will have a negative impact on them personally, whilst more than eight in 10 (84%) are confident the Act will harm the private rented sector more broadly.
“What’s clear from the research is that most landlords have legitimate concerns about how the Renters’ Rights Act will impact their property portfolios,” says Aldermore’s director of mortgages, Jon Cooper. “Importantly, only 1% of landlords surveyed are unaware of the Renters’ Rights Act, with the vast majority highly aware of the potential implications. It’s vital that all landlords assess how the Act will impact their lettings activity, to protect themselves and ensure they’re able to continue offering a positive renting experience for their tenants.”
Some of the leading concerns for landlords are potential backlogs in the court system for evicting tenants (91% concerned), as well as the 2% rise in income tax for landlords holding properties in their own names (88% concerned). Well over eight in 10 landlords (84%) agree that they’ll need to be more selective about the tenants they let to, whilst more than seven in 10 (72%) will consider recouping losses by increasing rents.
Elsewhere in the research, the numbers show that expectations for rental yields have fallen to a five year low, and the share of landlords reporting strong tenant demand has fallen to 61%, down 7% from the previous quarter and 16% year-on-year.
“The sector faces challenges, let’s be upfront about that,” continues Aldermore’s Cooper. “But landlords are highly resilient. They’re also a cornerstone of the UK’s housing supply. The Renters’ Rights Act is being introduced with noble objectives in mind, and the vast majority of the UK’s two million or so landlords will agree that supporting their tenants is a key component of what they do. However, this research does highlight the tensions many landlords feel when it comes to potential knock-on effects of the Act coming into force. Maintaining an open dialogue between all parties and assessing the effectiveness of the Act as it beds in over time will be of the utmost importance.”
