Renters' Rights Act Could Restrict Housing Access for Financially Vulnerable Tenants, Warns NRLA
Landlords are expected to tighten tenant screening criteria in response to the new Renters' Rights Act, potentially leaving renters with weaker financial profiles struggling to find accommodation.
According to recent polling conducted by Pegasus Insight on behalf of the National Residential Landlords Association (NRLA), 78% of landlords indicated they will be more selective about prospective tenants due to heightened risks introduced by the legislation.
This shift raises worries about reduced opportunities for groups already facing barriers in the private rental market, including:
Individuals with fluctuating or unpredictable incomes
People with poor or no UK credit history
International students lacking a UK-based guarantor
Tenants impacted by the freeze on housing benefit rates
Key Changes Driving Landlord Caution
The Act introduces several measures that limit traditional risk-mitigation tools for landlords:
- Restrictions on rent in advance: Landlords can no longer request more than one month's rent upfront in most cases. This removes a common way for tenants with limited credit to demonstrate reliability.
- Open-ended tenancies: Most agreements are now periodic with no fixed term. This makes it harder to secure guarantors, who may be unwilling to commit to an indefinite period of liability.
Additionally, 90% of landlords expressed serious concern over court delays when pursuing legitimate repossessions. Current processing times for possession cases (involving rent arrears or anti-social behaviour) average nearly eight months.
NRLA Response
Ben Beadle, Chief Executive of the NRLA, commented:
"Today's findings paint a worrying picture for many renters and serve as an important reminder that reforming the private rented sector comes with considerable risk. Responsible landlords need confidence that tenants can sustain a tenancy. If the system makes it harder for them to seek those assurances, the result will be fewer options for those on the financial margins."
Beadle also urged the government to publish a clear plan with targets and resources to speed up court processing of valid possession cases, warning that ongoing delays risk undermining landlord confidence and reducing overall housing supply.
Broader Context
The Renters' Rights Act (effective from May 2026) abolished no-fault evictions (Section 21), ended fixed-term tenancies, and introduced stronger tenant protections. While aimed at improving security and fairness, critics argue these changes may unintentionally reduce supply and access for higher-risk tenants.
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