Alert for tenants over new £1,100 cost and impending rule change

Alert for tenants over new £1,100 cost and impending rule changeA new law and current events are creating 'a perfect storm'CommentsMoneySteven Smith Content Editor01:55, 04 Apr 2026View 3 ImagesTenants could face rent hikes(Image: Tatjana Aleksejeva via Getty Images)Tenants are being warned as events conspire against them. Experts warn rents could surge as buy-to-let mortgage repayment costs increase by an average of £1,100 annually amid the Iran conflict, creating a "perfect storm" for landlords. Buy-to-let fixed mortgage rates are climbing due to Middle East tensions, according to the latest research from Moneyfactscompare.co.uk.‌Landlords are also confronting additional financial pressures over the coming years to comply with new private rental regulations. Average buy-to-let fixed rates over two or five-year terms have increased since early March 2026. Earlier this week, the two-year rate reached its highest point in a year at 5.40 per cent, while the five-year rate hit its highest level in two years at 5.91 per cent - with the situation evolving daily.‌Borrowing costs for those securing a two-year fixed deal are now £1,100 higher compared to early March 2026, based on a £250,000 loan over a 25-year term. Overall, buy-to-let product availability has dropped sharply, by approximately 1,300 deals since early March. Choice last fell below 5,000 in November 2025. Landlords are also preparing for the Renters' Rights Act, which takes effect this May, and will be required to invest up to £10,000 to achieve an Energy Performance Certificate (EPC) rating of C by October 2030.‌View 3 ImagesCurrent events are causing problems for people(Image: ToucanStudios via Getty Images)Rachel Springall, finance expert at Moneyfactscompare.co.uk, warned: "Soaring borrowing costs will cause pain to landlords this year, as they join millions of consumers facing higher mortgage repayments. This is terrible news, as rising costs could lead to higher rental pay...