The private rental sector is beginning to show clear signs of change as the Renters’ Rights Act approaches, with many landlords reassessing how they operate. A recent survey of 900 landlords by LegalforLandlords highlights a shift in attitude, with stricter tenant selection and reduced risk-taking expected to shape the market moving forward.
One of the most notable findings is that a significant portion of landlords are considering leaving the sector altogether. Around a quarter of those surveyed said they plan to sell their properties and exit the market, suggesting that the upcoming reforms are prompting some to rethink their long-term position in property investment.
For those who intend to remain, the focus appears to be on tightening processes rather than maintaining the status quo. Around 60% of landlords said they plan to become more selective when choosing tenants, reflecting growing caution as new rules begin to take effect.
This shift is largely driven by concerns around risk. Although many landlords are familiar with the details of the legislation, a majority believe the changes could expose them to greater financial or legal uncertainty. As a result, there is a stronger emphasis on ensuring tenants are financially stable and reliable before entering into agreements.
Affordability checks are expected to become more detailed as part of this approach. Over half of landlords surveyed said they will place greater importance on requiring guarantors, particularly once the first phase of the act is introduced on 1 May. This move is aimed at providing an additional layer of security in case tenants are unable to meet their rental commitments.
Income verification is also likely to become more rigorous. Around 22% of landlords said they intend to strengthen their affordability assessments, ensuring that tenants can comfortably manage rent payments over the long term. This reflects a broader trend towards more careful financial screening.
References from previous landlords are set to play a larger role as well. Nearly one in five landlords said they plan to rely more heavily on past rental history when assessing applicants. This allows landlords to gain a clearer understanding of a tenant’s behaviour and reliability over time.
In addition, some landlords are planning to expand the use of other checks. Credit history reviews and employment verification are both expected to become more common, with around 16% of respondents indicating they will increase their use of these tools. Together, these steps suggest a more structured and cautious approach to tenant selection.
This increased scrutiny is also influencing who landlords are willing to rent to. Many respondents admitted they are now less likely to accept tenants they consider higher risk, including those with lower incomes or limited rental history. This could have wider implications for access to housing, particularly for those already facing challenges in the rental market.
Despite these changes, not all landlords are stepping back. Around 63% said they plan to continue renting as usual, although with stricter checks in place. For this group, the reforms are seen as a reason to refine their processes rather than withdraw from the sector entirely.
However, the number of landlords planning to reduce their involvement should not be overlooked. In addition to those exiting completely, a further 13% said they intend to scale back their portfolios. This could lead to a gradual reduction in available rental properties, particularly if demand remains strong.
Much of the concern centres around the removal of Section 21 ‘no-fault’ evictions. This was identified as the biggest issue by 43% of landlords, as it changes how and when they can regain possession of their properties. Without this option, landlords may feel they have less flexibility in managing their investments.
Another area of uncertainty is the planned shift away from Assured Shorthold Tenancies towards periodic agreements. Around 20% of respondents highlighted this as a key concern, as it represents a structural change in how tenancies are managed.
Commenting on the findings, Sim Sekhon, Group CEO at LegalforLandlords, noted that the level of uncertainty is understandable given the scale of the reforms. For many landlords, particularly those who have relied on existing systems, the changes represent a significant adjustment.
At the same time, he stressed that the reforms are not intended to remove landlords’ rights altogether. Instead, they aim to reshape how those rights are applied within a more balanced framework. Landlords who maintain high standards, carry out thorough checks, and manage their properties professionally are likely to adapt more easily.
He also pointed out that there will still be clear legal routes for regaining possession when necessary. Whether due to tenant-related issues or personal circumstances such as selling or moving back into a property, landlords will retain options under the new system.
Overall, the survey highlights a sector in transition. While some landlords are choosing to step away, many others are adjusting their approach to reduce risk and maintain stability. Stricter tenant vetting, increased reliance on financial checks, and a more cautious attitude towards risk are all expected to become more common.
As the Renters’ Rights Act comes into force, these changes could reshape the rental landscape. Tenants may face more detailed screening processes, while landlords focus on protecting their investments in a changing regulatory environment.
In the longer term, the balance between supply and demand will be an important factor to watch. If a significant number of landlords leave the market or reduce their portfolios, it could have an impact on rental availability and pricing.
For now, one thing is clear: the private rental sector is evolving, and both landlords and tenants will need to adapt to a new set of expectations as the reforms take hold.
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