Eighty per cent of landlords have said they are "concerned" about the Renters’ Rights Act, which has come into force today, Pegasus Insight has revealed.

In its Q1 2026 Landlords Trends data, the firm found that 70% of landlords believe the legislation will have a negative impact on their lettings business, while 77% expect it to negatively impact the market overall.

Pegasus stated that these concerns are already translating into behavioural changes, with four in five landlords saying the act will make them more selecting about who they let to. Meanwhile, 75% of those planning rent increases say they will do so to offset the anticipated impact of the reforms.

Much of this anxiety centres on a perceived loss of control, particularly around the removal of no fault evictions, the potential delays in regaining possession, and greater constraints on how rents are managed over time.

However, in separate Q1 Tenant Trends research, Pegasus found that the sector may already be far more stable than many landlords anticipate.

The typical renter has already spent more than five years in the same home, and two thirds of tenants intend to stay in the current property for another 4.3 years on average.

Pegasus said that the findings point to a clear disconnect, while landlords are preparing for increased churn and uncertainty, most tenants are already behaving like long-term occupants, valuing stability and continuity in their housing.

However, it added that if landlord concerns continue to drive more cautious letting strategies and upward pressure on rents, there is a risk that behavioural responses to the legislation could have a greater short-term impact on the sector than the reforms themselves.

Founder and managing director at Pegasus Insight, Mark Long, stated: "Landlords are responding to a perceived shift in control, and that is already influencing decisions around rents and tenant selection ahead of implementation. But the tenant data tells an important story. Most renters are settled, they stay for long periods and relatively few tenancies end in dispute or eviction.

"For lenders and investors, that stability is critical, underpinning income predictability and reducing risk across the sector. The key question now is whether confidence returns once the new framework beds in, or whether caution continues to shape landlord behaviour in the longer term."

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