Over three in five (61%) landlords are planning to raise rents in the next 12 months, Pegasus Insight has revealed.

The firm’s Landlord Trends report for Q2 showed that this figure has dropped from 78% in the same period in 2024.

Although the number of landlords intending to increase rents has declined, the average anticipated rise has jumped year-on-year from 5% to 6%.

Pegasus Insight said that these expectations closely mirror official data from the Office for National Statistics, which reported that the average UK private rent increased by 5.7% in the year to August 2024, totalling £1,348 a month.

The firm stated that this pattern suggests the market is reaching a natural limit, with many landlords already adjusting rents to current market levels.

Pegasus Insight found that factors for increasing rents include running costs and the upcoming Renters’ Rights Bill, with many landlords pre-emptively acting ahead of the Bill’s expected Royal Assent in November.

Founder and director at Pegasus Insight, Mark Long, said: "Landlords remain under pressure from higher costs and policy change, and the instinct to raise rents remains strong. But our research shows that the market may be reaching an affordability ceiling. When rent levels rise too far, demand can falter – this is price elasticity in action, and many landlords recognise that pushing further risks losing tenants or facing longer voids.

"At the same time, the forthcoming Renters’ Rights Bill is influencing decisions now. With annual rent increase limits and tribunal challenges on the horizon, landlords are reviewing their portfolios carefully. This is a delicate period for the Private Rented Sector: if costs keep rising as regulation tightens further, we may see a fresh wave of rent inflation despite the moderation in intentions revealed by our latest research."

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