The UK's private rented sector is bracing for change as landlords adapt to new anti-discrimination laws. Despite concerns over increased regulations, ministers insist that property owners retain the freedom to choose who rents their properties.
Under the Renters' Rights Act, which came into force in May, it is now unlawful for landlords and letting agents to discriminate against potential tenants on the grounds of receiving benefits or having children. Those found guilty of breaching these regulations face fines of up to £7,000.
Baroness Taylor of Stevenage stressed that while landlords are encouraged to conduct proportionate referencing checks, there is no single method for determining a tenancy's suitability. The Department for Levelling Up, Housing and Communities is monitoring the sector and conducting an evaluation of the Act's impact.
Industry analysts report that landlords have become more cautious since the Act's introduction, with some implementing stricter referencing checks and placing greater emphasis on financial security and tenant reliability. This shift is attributed to factors including cost pressures affecting both landlords and tenants, as well as the abolition of Section 21 'no-fault' evictions.
Reposit CEO Ben Grech noted that while early indicators suggest arrears are stabilising, they remain elevated. He cited the Renters' Rights Act and the impending end of Section 21 as contributing to landlords' caution, highlighting the need for ongoing government evaluation to balance tenant protections with operational considerations.