Nikka Sulton

New research suggests that the Renters’ Rights Act is already influencing how landlords choose tenants, with many letting agents reporting that property owners are becoming more cautious.

Four months after the legislation came into effect, data from The Lettings Hub indicates a noticeable change in landlord behaviour. Around 80% of letting agents surveyed say landlords are now taking greater care when deciding which tenants to accept.

Landlords Are More Concerned About Evictions

The research suggests that the change is not primarily about landlords making less money from their properties.

Instead, confidence in the new possession process appears to be a major concern.

Around 95% of letting agents say they lack confidence in how the courts will operate under the new system. Court delays were identified as the biggest concern among agents, while the removal of Section 21 was reported as the main issue worrying landlords.

The findings suggest that uncertainty over how quickly landlords will be able to regain possession of a property could be affecting decisions about who they are willing to rent to.

More Cautious Tenant Selection

The increased caution could have consequences for renters, particularly those who may already find it harder to pass traditional referencing checks.

The Lettings Hub argues that landlords need to manage the additional risks created by the new system without simply becoming more restrictive when selecting tenants.

Beth Richardson, Head of Operations at The Lettings Hub, said landlords are right to take greater care but warned that excessive caution could reduce the number of homes available to renters.

She suggested that thorough tenant referencing, professional guarantors where appropriate and clearer guidance on the new possession process could help landlords manage concerns without unnecessarily excluding applicants.

Rental Supply Is Also Falling

The research points to another pressure facing the private rented sector.

Nearly two-thirds of letting agents surveyed said the supply of rental properties had declined.

Among those reporting a fall, 91% linked the reduction to landlords selling their properties.

This suggests that changes in tenant selection are happening alongside a wider reduction in rental stock.

If landlords continue selling rather than maintaining or expanding their portfolios, tenants could face fewer properties to choose from, potentially increasing competition for available homes.

Concerns Over the New Possession System

The removal of Section 21 has been one of the most significant changes introduced under the Renters’ Rights Act.

Landlords can no longer rely on the previous no-fault eviction process and must instead use specific legal grounds when seeking possession.

While the reforms are intended to provide greater security for renters, the research suggests that uncertainty around enforcement and court processes is influencing landlord confidence.

The extent to which these concerns translate into longer-term changes in landlord behaviour remains to be seen.

What Does This Mean for Landlords and Tenants?

The findings highlight a potential tension within the private rented sector.

Greater protection for tenants is intended to make renting more secure, but landlords who are uncertain about the possession process may respond by becoming more selective when accepting applications.

At the same time, falling rental supply could make it harder for tenants to find suitable properties.

For landlords, the research reinforces the importance of carrying out proper referencing and understanding the new possession rules. For tenants, increased competition could mean that having strong references, suitable affordability evidence and a guarantor where necessary becomes even more important.

The Lettings Hub’s findings provide an early indication of how the Renters’ Rights Act may be changing behaviour in the rental market. With the new rules still relatively recent, further data will be needed to establish whether these trends continue.