An agent has been instructed to raise rents by 1.5% above inflation to fund compliance with the Renters Rights Act (RRA).
The agent – in Skegness – reports the rise in the latest Royal Institution of Chartered Surveyor (RICS) lettings market study.
He says: “Prior to the RRA being approved, landlords were looking at rent increases circa Retail Price Index (RPI).”
But he adds: ‘As details emerge of what has been agreed in Parliament and on what timescale, we are instructed to increase by RPI +1.5% to help with anticipated costs of compliance in the next 12 months.”
Other agents, in their commentary in thew RICS study, reveal widespread fears amongst landlords as to the consequences of the Act.
A West Midlands agent writes: “Supply/demand imbalance as buy to let investors leave the market is forcing rental property to remain very scarce .
“Expect many Section 21’s to be issued in the early part of 2026.”
A Huddersfield agent notes: “Fewer properties available as more landlords continue to sell.”
And a Hereford agent warns: “Many investors are selling up their buy to let investments due to government overreach and taxes.”
Meanwhile RICS itself is warning that the lettings market remains under pressure.
Tenant demand weakened further in December, falling 27%, but new landlord instructions stayed “deeply negative” – down 39%.
The institution says this underlines persistent supply constraints.
As a result, rents are expected to keep rising, forecast at around 3% on average over the next 12 months.
You can see the full RICS report here: https://cdn.roxhillmedia.com/production/email/attachment/1780001_1790000/885a95dd82233f8f75f664bcca32accfbcc3dab2.pdf
