New data shows a third are considering selling up as registration costs add fresh pressure
More than half of UK landlords say the Renters' Rights Act has had a negative effect on their buy-to-let business since its main measures came into force in May 2026, according to the Q3 2026 survey data from specialist lender Landbay.
The survey, sent to more than 2,000 landlords, found 53% reported a negative impact – with 31% describing that impact as 'somewhat negative' and a further 22% as 'very negative'. Just 28% of respondents said they had made no significant changes to their businesses, underscoring the extent to which the legislation is already reshaping behaviour across the private rented sector.
The findings were released by Landbay in the week of the first anniversary of the Act becoming law.
Rents up, portfolios under review
The Landbay survey reveals landlords are responding with concrete operational changes, with 36% have increased rents, 34% have changed their tenant referencing or affordability requirements, while a further 16% have increased their use of letting agents or other professional support.
Investment decisions are also being affected. Almost a third or 33% said they had decided to sell or were considering selling properties, while 29% had reduced plans to purchase additional rental properties – raising questions about the longer-term supply of privately rented homes.
Among individual elements of the Act, the abolition of Section 21 'no-fault' evictions was cited by 32% as having the greatest impact on their business. Changes to possession grounds were highlighted by 14%, while 15% pointed to the introduction of periodic tenancies and the end of fixed-term tenancies.
Rob Stanton, sales and distribution director at Landbay, said the findings showed landlords were already acting on the changes rather than simply anticipating them.
"One year on from the Renters' Rights Act becoming law, we are beginning to understand how landlords have responded to the changes, with more than half reporting a negative impact on their businesses," Stanton said.
"These are not simply concerns about what might happen in the future. Landlords are already making practical decisions based on the requirements they now face, although the impact will inevitably differ depending on individual circumstances and portfolio structures."
Landlord registration adds further pressure
The survey also examined awareness of and preparation for the forthcoming national landlord registration requirements. While more than 90% were aware a registration service was being introduced, knowledge was uneven: 17% said they understood the register was coming but did not fully understand the requirements, and a further 17% knew a register was being introduced but did not know the details.
The anticipated financial impact is significant. 65% expected the new registration system to increase costs, while 44% anticipated spending more time managing their properties. More than a third or 38% believed the requirements could lead them to increase rents where possible, and 33% said they could make them less likely to purchase additional properties. However, only 12% expected the requirements to have little or no impact.
Preparation levels are mixed. While 59% described themselves as either 'very' or 'quite prepared' for landlord registration, 24% said they were either not very prepared or not prepared at all. A further 17% said they did not yet know enough to assess their preparation.
Stanton noted that the 2026 Budget announcement of a further increase in income tax on property income for landlords holding properties in their personal names across England, Wales and Northern Ireland added yet another financial consideration for those reviewing the viability of their portfolios.
"Landlords need clear guidance about their responsibilities and sufficient time to prepare for the changes still to come," he said. "At Landbay, we recognise the importance of supporting landlords with their existing borrowing and future investment plans, while ensuring the introduction of further requirements does not unnecessarily discourage investment or reduce the supply of homes available to tenants."
Brokers navigating a shifting market
For mortgage brokers and intermediaries operating in the buy-to-let market, the Landbay survey data highlights a client base under mounting pressure from multiple directions – legislative change, rising compliance burdens, and an additional tax measure from the Autumn Budget 2026.
The findings suggest brokers will increasingly be called upon not only to advise on product selection, but to help landlord clients think through the broader implications of regulatory change for their portfolios and financing arrangements. Landbay said it would continue to run its quarterly landlord survey to track sentiment and behaviour over time.
