FCC Paragon analysis of rent prices in Great Britain shows a rapid rise in rent prices in the last year, with the average rent now £1,338 - up 8.1% in the year to February 2025 - and £2,235 (9.9% increase) in London.
While many landlords are concerned about clauses relating to the ability to increase rental prices in the proposed Renter’s Rights Bill (RRB), FCC Paragon's analysis suggests that these clauses won't dampen landlord's ability to benefit from a strong rental market.
The RRB states that tenants can appeal any above-market rent increases that they suspect are being implemented as a ‘backdoor means of eviction’. However, landlords will still be able to increase their rents in-line with local market rates – a price that would reasonably be achieved if the property was being newly advertised on the market.
Managing Director of FCC Paragon, Bekki Leaves, commented:
“The Renter’s Rights Bill will not hamper the profitability of being a buy to let landlord. Nor will it slow the rising price of rent in Britain.
"With regards to rent prices, the key focus of the RRB appears to be stopping landlords from forcing evictions by increasing rent to an unacceptable level that is out of step with fair market rates. But by no means does it mean that landlords cannot increase rent for existing tenants to match increases in that fair market value.
"For example, landlords in London can now fairly insist on increasing their rents by up to 9.9% for tenants who moved in at the start of 2024. As such, they are going to be no worse off with the RRB in place than they would be without it.
“The government is determined to avoid implementing any kind of rent control on the British market, so this is an attempt to thwart the unfair practices of a few landlords and ensure people can afford a good home without having to stem the profit potential of enterprising landlords.”
