A significant proportion of landlords are considering exiting the private rented sector in response to the Renters’ Rights Act, while many of those staying are preparing to tighten tenant checks, according to new research.
A survey of more than 900 UK landlords by LegalforLandlords found that 25% intend to leave the market as a result of the incoming legislation. Among those planning to remain, 60% say they will adopt stricter criteria when assessing prospective tenants.
Income and affordability checks are expected to come under increased scrutiny, with over half of landlords also saying they will place greater reliance on rent guarantors as part of their application process.
The findings come amid concerns among landlords about the impact of reforms such as the abolition of Section 21 evictions and the move away from Assured Shorthold Tenancies, which respondents believe will increase exposure to risk.
While awareness of the Renters’ Rights Act is relatively high – 77% of landlords say they understand its key provisions—confidence in its implications is lower. The survey found that 63% of landlords believe the reforms will increase the level of risk associated with letting property.
So what is actually driving landlord anxiety around the Renters’ Rights Act?
For many, the issue centres on control and possession rights. 43% of landlords cite the abolition of Section 21 evictions as their biggest concern, while a further 20% highlight the end of Assured Shorthold Tenancies and their replacement with Assured Periodic Tenancies.
Landlords are already adjusting their approach. Half of respondents (50%) say they plan to tighten tenant vetting processes, with a quarter (25%) describing this change as significant.
According to the study, 22% will place greater emphasis on income and affordability checks, 19% will prioritise previous landlord references, 16% will increase credit checks, and 16% will strengthen employment verification. Notably, 53% say they are now more likely to require a rent guarantor.
Overall, 60% of landlords say they will be significantly stricter when selecting tenants, and the same proportion admit they are now less likely to let to what they consider “higher risk” applicants—such as those on lower incomes or with limited rental history.
While 63% of landlords say they intend to continue operating as normal – albeit with tighter controls – a significant minority are reconsidering their position altogether. Some 24% say they plan to sell and exit the market, while 13% intend to reduce the size of 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.”
Is your agency prepared for this week’s Renters’ Rights Act changes?
Read the orginal article: https://propertyindustryeye.com/landlord-exodus-warning-as-new-rules-drive-exit-fears/?utm_source=rss&utm_medium=rss&utm_campaign=landlord-exodus-warning-as-new-rules-drive-exit-fears
