The Renters’ Rights Act may be making it more difficult for some tenants to find a home, according to research from property software provider Goodlord. Its latest State of the Industry report found that one in four landlords are now more inclined to turn down applicants they might previously have accepted.
Under the new rules, landlords and letting agents can no longer demand large amounts of rent in advance before a tenancy begins for agreements covered by the legislation. This practice was particularly common among students and international students, although tenants can still choose to pay rent early after their tenancy has started.
Unintended effects of the Renters’ Rights Act
Goodlord’s research suggests the changes are influencing how landlords and letting agents assess prospective tenants. More than half of letting agents, or 51%, said they were being more cautious when recommending applicants than they were at the same point last year.
Meanwhile, a third of landlords said they would prefer to leave a property empty rather than accept an applicant they consider higher risk.
Goodlord chief executive William Reeve said the early findings were beginning to reveal unexpected consequences of the legislation. He warned that some groups could face greater difficulties securing a tenancy, creating a growing divide between people already settled in their homes and those trying to find somewhere new.
Students, foreign nationals and people with less conventional income arrangements could be particularly affected as landlords become more selective.
Landlord confidence shows some improvement
Despite these concerns, the report indicates that pessimism among landlords has fallen over the past year. Around 69% remain negative about the future of the lettings market, compared with 78% in 2025.
Confidence also varies depending on the size of the letting agency. Among businesses employing 11 or more people, 42% expressed optimism. This compares with just 28% of agencies with five or fewer employees, suggesting smaller firms may be finding the changes harder to manage.
Larger landlords appear more concerned about the outlook than those with smaller portfolios. Some 81% of landlords with six or more properties said they were pessimistic, compared with 63% of those who own just one property.
A growing divide across the lettings market
Reeve said the industry had faced considerable uncertainty and preparation ahead of the legislative changes. Now that the initial transition has settled, he suggested the market has a clearer understanding of what to expect, helping to ease some concerns.
However, he highlighted a widening gap in confidence between larger and smaller letting agencies. Bigger businesses may be better equipped to handle the changes because they have more staff and resources available.
The report also points to a difference in outlook between tenants and landlords. With landlords becoming more cautious about who they accept, convincing them to remain in the rental market could become more challenging.
For tenants, particularly those with less straightforward financial circumstances, the findings suggest that securing a suitable rental property may become increasingly difficult as landlords reassess the risks of accepting applicants.
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