Almost half of landlords put up rent in last year - and most of those that did earned £100,000 or more

Almost half of landlords put up their tenants' rent last year, research shows – and the majority of those who did earned £100,000 or more per year. 

In a poll by the Tenancy Deposit Scheme Charitable Foundation (TDS), 48 per cent of landlords said they had increased rents at least once in the past 12 months. 

Of those, 55 per cent earned £100,000 or more per year including income from their properties and other sources. 

In addition, 60 per cent owned five or more properties and 54 per cent employed a letting agent. 

Many landlords have seen their own costs increase in the past few years, with maintenance expenses on the up. 

Under the Renters' Rights Act which came into force in May, landlords can now only raise rents once per year and tenants have stronger rights to challenge them at tribunals. 

Some landlords therefore raised rents prior to the legislation coming in. 

In a case published this week, a tenant challenged their landlord's £50 per month rise but the judge went even further and ordered they cut the rent by £200. 

The TDS Foundation's research found that almost seven in ten landlords earn over £50,000 in pre-tax income annually, and approximately a third of landlords (31 per cent) earn over £100,000 per year. 

The proportion of landlords who earn over £50,000 has increased significantly within the past two years, from 51 per cent to 69 per cent. 

Dr Jennifer Harris, Head of Policy, Research and Social Impact at The Dispute Service Group, said: 'One reason could be that these groups of landlords are more likely to view letting property as a business.

'Thirty per cent of landlords with HMOs, 41 per cent of those with larger portfolios, and 28 per cent of those earning £100, 000-plus view their role as a full or part-time business.

'Landlords earning £100,000-plus are more likely to own 10-plus properties (12 per cent) than all landlords (6 per cent) and are also more likely to own HMOs (44 per cent) than landlords overall (27 per cent). 

'Landlords that treat their property as a business may be more likely to review rents systematically, rather than allowing rents to remain unchanged for long periods.'

While the proportion of landlords upping rental costs for tenants was higher among higher earners, the overall number of landlords who increased rental prices last year dropped slightly. 

The survey of more than 2,000 private landlords found that 50 per cent had kept their rents unchanged in the past 12 months, compared with four in ten, or 39 per cent, last year. 

According to the research, the most common reasons landlords gave for upping rents were higher running costs, increased property maintenance expenses and increases in the cost of living.   

Dr Jennifer Harris, head of policy, research and social impact at The Dispute Service Group, said: 'Our research shows that decisions about rents are rarely straightforward.

'While retaining good tenants and recognising the financial challenges they face are important considerations for many landlords, they are facing pressures of their own, with rising running and maintenance costs continuing to influence decisions about rents.'

Impact of Renters' Rights Act 

Since May 1, 2026, the Renters' Rights Act has been in force. Under the new law, landlords can only increase their tenants' rent once per year and it must be no higher than the open market rent. 

Landlords also have to give tenants written notice of the proposed rent increase at least two months before the hike takes effect. 

If a tenant thinks their proposed rent increase is above market rate, they can challenge it at the first-tier tribunal. 

Existing rent review clauses in tenancy agreements also became void after May 1, 2026, meaning landlords could not use them to hike tenants' rent after this point. 

Within the survey results from TDS today, there may well have been a flurry of landlords who increased their tenants' rent before May 1, 2026. 

Twenty-six per cent of landlords surveyed via TDS said they had at least one tenant in rent arrears, a slight fall from 29 per cent in the previous year's survey.

When dealing with arrears, landlords most commonly reported engaging directly with tenants to discuss their options or providing information about their rights and available support services.

Twenty-one per cent of landlords surveyed said they had agreed a repayment plan with tenants, while 17 per cent had offered a rent-free or reduced-rent period to provide some financial breathing space.

Is Labour introducing rent controls by the back door? 

The outcome of a legal case this week sparked concern that the Government has introduced rent controls by the back door. 

A tenant successfully challenged a £50 rent increase for rent from £1,650 per month to £1,700. 

After listening to arguments from both parties, the judge went even further and ruled the market rent was £1,450 a month, forcing the landlord to reduce it by £200 per month. 

Labour's housing minister, Matthew Pennycook, took to X on Tuesday to highlight the case as an example of how the Government was 'standing up for renters'. 

While tenants could challenge unfair rent hikes before the Renters' Rights Act, they had to prove the rent was significantly higher than what the landlord could expect for a comparable property.  

Tenants can also challenge their rent, irrespective of any increase, at the tribunal within six months of moving into a property.

Tenants have to pay a £47 application fee to challenge a rent increase but the tribunal can order the landlord to reimburse it if they win. 

Ashley Osborne of Lexit, a service that helps analyse buy-to-let properties for landlords, says of the recent case: 'The landlord asked for £50 more and the tribunal cut the rent by £200, below what both sides agreed at the start.

'The tribunal called the flat attractive and high specification. It still set the rent £200 below the rent agreed at the start of the tenancy, and £250 below the proposed rent, on its own reading of the comparables. The agreed rent is no longer the floor.'

He added: 'I warned a year ago the Renters' Rights Act was rent control by the back door. Its defenders said this wouldn't happen.

'But when a third party's view of market rent can override a rent two people freely agreed, that's rent control in substance, whatever the act calls it.'