The National Residential Landlords Association (NRLA) has warned that the upcoming Renters’ Rights Act could make it more difficult for certain groups of tenants to secure rental accommodation, particularly those considered financially higher risk.
According to research carried out by the organisation, many landlords expect to become more selective when choosing tenants once the reforms come into force.
The findings have raised concerns that renters with poor credit histories, fluctuating incomes, or limited financial backing may face greater challenges when trying to find a home in the private rented sector.
Landlords Expect to Tighten Tenant Selection
The NRLA surveyed its landlord members and found that 78% believe the Renters’ Rights Act is likely to make them more cautious about who they rent properties to.
The organisation says this could disproportionately affect tenants who are already on the financial margins or who struggle to meet traditional affordability checks.
Groups that may be affected include self-employed renters with unpredictable monthly earnings, tenants relying on housing support, and individuals with weaker credit records.
International students could also face difficulties, particularly those without a UK credit history or someone based in the UK willing to act as a guarantor.
The NRLA argues that landlords are likely to place greater importance on financial security and reliability if they feel it may become harder to regain possession of properties when problems arise.
Concerns Over Sustaining Tenancies
NRLA chief executive Ben Beadle said the findings highlight what he described as potential unintended consequences of rental reform.
He explained that responsible landlords need confidence that tenants can maintain rent payments and sustain a tenancy over the long term.
According to Beadle, if landlords feel they have fewer ways to protect themselves against financial risk, they may respond by becoming more selective during the application process.
He warned that this could reduce housing options for tenants already facing financial pressures.
The NRLA also criticised the government for failing to provide clearer details about how possession cases will be handled efficiently through the courts once the reforms are fully introduced.
Changes to Advance Rent Rules Raise Questions
One of the concerns raised by the NRLA relates to proposed restrictions on rent paid in advance.
Previously, some tenants with limited credit history or irregular income were able to reassure landlords by offering several months of rent upfront.
The organisation says the new rules could remove this option, potentially making it harder for applicants in non-traditional financial situations to secure a tenancy.
This could particularly affect younger renters, overseas students, freelancers, and others who may struggle to meet standard referencing requirements despite being able to afford rent overall.
Open-Ended Tenancies Could Affect Guarantor Arrangements
The shift towards open-ended or periodic tenancies under the Renters’ Rights Act has also raised concerns around guarantor agreements.
Under the reforms, most tenancies are expected to move away from fixed-term arrangements, creating uncertainty over how long guarantors may remain financially responsible.
The NRLA believes some guarantors could become reluctant to support tenants if there is no clearly defined end date attached to the tenancy agreement.
This may create another obstacle for applicants who rely on guarantors to pass affordability checks or secure rental properties.
Court Delays Continue to Worry Landlords
Another major concern highlighted in the survey is the ongoing issue of court backlogs and delays within the possession process.
According to the NRLA, 90% of surveyed landlords are worried about how long it may take to regain possession of a property for legitimate reasons once no-fault evictions are abolished.
The organisation says landlords are particularly concerned about situations involving serious rent arrears or anti-social behaviour.
Current court delays mean some possession cases already take several months to process and enforce, creating uncertainty and financial strain for landlords.
The NRLA argues that unless the court system is properly improved and funded, the reforms could undermine landlord confidence further.
Legal Sector Also Raises Concerns
The issue has also attracted attention from legal professionals.
Law Society president Mark Evans previously warned that without proper investment in the courts and wider legal system, the Renters’ Rights Act risks creating problems for both landlords and tenants.
There are concerns that lengthy delays could leave tenants waiting longer for disputes to be resolved while also making landlords more hesitant to take on applicants they view as financially risky.
The NRLA says the government should introduce clear targets for processing possession cases and ensure the legal system has sufficient resources to manage increased demand.
Potential Impact on the Rental Market
The debate comes at a time when many landlords are already reconsidering their future in the private rented sector due to rising costs, tax changes, and tighter regulations.
Industry groups warn that if landlords become increasingly cautious about tenant selection, some renters could find themselves excluded from parts of the market altogether.
Critics fear this could make it harder for vulnerable or lower-income tenants to secure housing, even as demand for rental properties continues to rise across many parts of the UK.
At the same time, tenant campaigners argue that the reforms are necessary to improve security and stability for renters who have historically faced uncertainty under the existing system.
Looking Ahead
As the Renters’ Rights Act moves closer to implementation, questions remain about how the reforms will affect both landlords and tenants in practice.
The NRLA continues to call for clearer court reform plans and safeguards that ensure landlords retain confidence in the rental market.
Without improvements to the legal system and greater clarity around enforcement, the organisation warns that landlords may respond by tightening affordability checks and becoming more selective about who they rent to.
For renters already struggling with rising housing costs and limited supply, that could make securing a home even more challenging in the years ahead.
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