Landlords across the UK are implementing stricter tenant selection criteria in the wake of the new Renters' Rights Act, according to recent research from the National Residential Landlords Association (NRLA). A survey conducted by the organisation, which included responses from 630 landlords, revealed that a substantial 78% anticipate becoming more selective when vetting prospective tenants.
The Renters' Rights Act, which came into force this month, aims to bolster protections for tenants, including measures to prevent 'no-fault' evictions and enhance the overall security of tenure. While welcomed by tenant advocacy groups, some in the property sector had expressed concerns about the potential for unintended consequences for landlords.
The NRLA's findings suggest these concerns may be materialising. Increased selectivity could mean a greater emphasis on factors such as credit history, employment stability, and previous rental references. For some segments of the renting population, particularly those with less conventional employment histories or those new to the rental market, this tightening could present significant hurdles in securing accommodation.
The Government's stated intention behind the Renters' Rights Act was to create a fairer and more secure rental market for tenants, addressing long-standing issues of insecurity and sub-standard housing. However, if landlords respond by raising barriers to entry, it could inadvertently make it harder for some individuals and families to find homes, potentially exacerbating the existing housing crisis in certain areas.
While the Act's full impact is yet to be seen, the initial response from landlords, as highlighted by the NRLA survey, points towards a significant shift in tenant application processes. Both the Government and tenant organisations will be closely monitoring the market to assess the broader implications for the millions of people who rely on the private rented sector for their housing needs.