¼ of landlords selling up
The latest research from LegalforLandlords reveals that a quarter of landlords plan to exit the market as a result of the Renters’ Rights Act, while 60% of those who remain plan to implement much stricter criteria when vetting tenants. In particular, income and affordability checks are set to face greater scrutiny, with more than half of landlords saying they will place increased emphasis on requiring rent guarantors.
LegalforLandlords has surveyed over 900 UK landlords* to understand how the introduction of the Renters’ Rights Act is going to impact the way they vet prospective tenants and protect their assets against what could be perceived as an increased level of risk resulting from changes such as the abolition of Section 21 evictions, and the banning of Assured Shorthold Tenancies.
The survey reveals that 77% of landlords are familiar with the ins and outs of the Renters’ Rights Act (RRA), and that 63% believe it is going to increase the level of risk they are exposed to.
What are landlords’ biggest RRA concerns?
This is understandably causing concern for the nation’s landlords, with 43% saying their biggest area of concern is the abolition of Section 21 ‘no fault’ evictions. 20% are most concerned about the banning of Assured Shorthold Tenancies which are to be replaced by Assured Periodic Tenancies.
These two changes together essentially mean that tenants will have the ability to remain in a property for longer, with landlords having reduced ability to regain possession without valid grounds.
How do landlords plan to mitigate these risks?
As a result of these concerns, 50% of landlords plan to apply more stringent vetting tenant applications, with 25% of them planning to do so ‘significantly’.
22% plan to pay particular attention to strengthening income and affordability checks, 19% are going to increase their reliance on references from previous landlords, while others are going to increase their use of credit history checks (16%) and employment verification (16%).
In order to increase their level of protection, over half of landlords (53%) say they are more likely to insist that tenants provide a rent guarantor.
All in all, 60% of landlords say they are going to be much stricter when choosing which tenants they allow into their properties, and 60% also admit they are now less likely to let to ‘high risk’ tenants, such as those who are on lower income, or have a limited rental history.
But perhaps the most striking and impactful revelation of the survey came when landlords were asked what their ultimate response to the Renters’ Rights Act is going to be.
A quarter of landlords are selling up
While 63% said they will continue renting as normal – albeit with a greater level of vetting and scrutiny – a quarter (24%) are explicit about their plans to sell their properties and exit the market altogether. A further 13% say they are reducing the number of properties in their portfolio.
Sim Sekhon, Group CEO at LegalforLandlords, commented:
“It’s clear from our research that many landlords are approaching the Renters’ Rights Act with a degree of uncertainty, and that’s entirely understandable given the scale of change being introduced. For some, particularly those who have relied on more traditional routes to regain possession, this represents a significant shift in how the sector operates.
However, it’s important to keep that concern in perspective. The reforms are not about removing landlords’ rights, but reshaping them. Landlords who carry out thorough tenant vetting, maintain high-quality properties and take a professional approach to management are unlikely to find themselves disadvantaged. Crucially, there are still clear and workable routes to regain possession, whether in response to problematic tenant behaviour or where a landlord needs to sell or move back into a property.
What is more concerning is the proportion of landlords considering leaving the sector altogether. A reduction in supply at that scale has clear implications for the wider market, particularly at a time when demand for rental homes remains consistently strong. Inevitably, that imbalance risks pushing rents upward and making it harder for tenants to access suitable accommodation. At the same time, it does mean that landlords who remain in the sector may benefit from reduced competition and sustained demand for well-managed rental homes.
As the industry adapts, the focus should be on clarity, education and confidence. With the right understanding of the new framework, landlords can continue to operate successfully within it, while contributing to a more stable and sustainable rental market overall.”
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