A year after the Renters’ Rights Act became law, landlords are responding to it at the start of a tenancy rather than by leaving the market, a survey from property management platform August reveals.
Since the Renters’ Rights Act took effect on 1 May, almost four in 10 landlords (39%) have tightened their referencing or affordability checks, and a third (32%) now ask for a guarantor where they did not before.
Looking two years ahead, 29% of landlords plan to reduce their portfolio or sell all of it.
That is almost identical to the 31% the government found in its English Private Landlord Survey 2024, carried out before the act took effect.
A third (34%) plan to grow and 29% to stay the same and 69% say they will relet the next property that falls vacant. So far, 15% have decided not to relet a property and 13% have sold or listed one.
Meanwhile, the survey found that 56% of single-property landlords have changed nothing.
Of landlords with five to nine properties, 54% now ask for a guarantor and 46% raising asking rents.
Landlords with 20 or more properties are the most likely to have gone to court, with 37% having served or begun a possession claim, against 20% of landlords overall.
It found 33% have raised the asking rent on a new let and 26% have increased rent on an existing tenancy.
Elsewhere, 32% of landlords have had a complaint referred to a deposit scheme, council or ombudsman, while a further 28% have had a tenant request to keep a pet, 26% have had a tenant challenge or refuse a rent increase and 23% have had a tenant give notice under the new rules.
August chief executive Richard Samuel says: “A year in, the clearest change the Act has made is at the start of a tenancy, not the end of one. That is a sensible response, as long as it rests on a consistent process rather than blanket rules.”
“A landlord who applies the same checks to every applicant and records why each decision was made is better protected than one who asks everyone for a guarantor. That protection will matter more once the landlord database and ombudsman arrive. Blanket rules also turn away good tenants and leave homes empty for longer.”
Also commenting, East Midlands Property Owners area manager Vicki Hextall adds: “Landlords aren’t walking away from the sector, they’re becoming more careful about who they let to.”
“With almost four in ten tightening their referencing, it’s clear landlords are managing risk now that regaining a property takes longer and is less certain.”
“The concern is that tenants with thinner credit histories or irregular incomes find it harder to get a foot in the door. Good referencing and good tenancy management go hand in hand, and that’s where we’re focusing our support and advice for members.”
