Over two in five (44%) buy-to-let (BTL) landlords in the UK intend to increase rent on their properties in response to the new Renters’ Rights Bill, Landbay has found.

The BTL mortgage platform’s latest research revealed that of those who are raising rents specifically because of the new bill, landlords with portfolios of between four and 10 properties are most likely to increase rents (32%), followed by those with between 16 and 30 properties (28%).

Those who are raising rents ahead of the implementation of the Renters’ Rights Bill will impose increases of 6% on average, which is above the highest levels of inflation already faced by private renters, which stood at 3.6% in May.

In the next 12 months, 89% of landlords intend to raise rents, with more than a third planning to increase rents by between 3% and 10%. Landbay 11% said they don’t plan to put up rents at all.

Under the bill, landlords will be limited to one rent increase per year to the market rate, which is the price that would be achieved if the property was newly advertised to let.

However, tenants have the opportunity to challenge this at a first-tier tribunal if they believe it exceeds the market rate.

Landbay added that the decision to increase rents not only reflects the potential cost implications of new regulation, but the continued uncertainty among landlords surrounding the planned removal of Section 21 no-fault evictions.

In a previous survey by the BTL mortgage lender, 75% of landlords expressed concerns about the removal of Section 21 and their ability to remove problem tenants.

Sales and distribution director at Landbay, Rob Stanton, said: "This sharp rise in rents in the short term shows the unintended consequence of this new regulation, as landlords look to act now and pre-emptively raise rents in fear of future cost implications or difficulties, and to protect their investments. By forcing the hand of landlords in this way, there is a real risk of worsening the cost-of-living crisis that so many private renters are currently facing.

"Any good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the property owner should be protected too. There’s no doubt we need to balance reform with support and safeguards for landlords to make sure that the rental market continues to play the important role it does in the UK’s housing mix."

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