Landlords are familiar with the requirement to provide prescribed information within 30 days of placing a tenant’s deposit in a Deposit Protection Scheme (DPS). However, many question the practical purpose of this document, which appears to add little value beyond the tenancy agreement itself. Despite this, failure to provide prescribed information can result in fines of up to three times the deposit amount, raising concerns about unnecessary bureaucracy in the private rental sector.

The role and challenges of prescribed information

Prescribed information is intended to inform tenants about the protection of their deposit, including details of the scheme used and how to reclaim the deposit at the end of the tenancy. While this sounds straightforward, landlords often find the process redundant, as much of this information is already covered in tenancy agreements. The requirement can feel like paperwork for its own sake, creating frustration without clear benefits.

Given the potential financial penalties for non-compliance, landlords are keen to understand the rationale behind prescribed information and whether it could be streamlined or integrated more effectively within existing tenancy documentation. The current system appears to impose administrative burdens without enhancing tenant protection in a meaningful way.

Impact of the Renters’ Rights Act on landlords

The recent Renters’ Rights Act has not addressed the concerns surrounding prescribed information or the broader challenges landlords face. Instead, the Act introduces changes that may increase difficulties for landlords, particularly regarding tenant behaviour and rent arrears. For example, tenants can now accrue up to three months’ rent arrears before legal action can commence, potentially leaving landlords exposed to significant unpaid rent and prolonged eviction processes.

This delay in enforcement can result in financial strain and increased psychological stress for landlords, especially when dealing with problematic tenants. Cases where tenants obstruct access or make vexatious claims can be particularly challenging, as landlords have limited recourse until the legal process progresses.

Affordability and social tenants in the private rental sector

The private rental sector is contracting, partly due to Local Housing Allowance (LHA) rates falling short of actual market rents. This discrepancy places many tenants at risk of losing access to suitable housing. Landlords are becoming more selective, often wary of accepting social tenants due to affordability concerns and the risk of rent arrears.

Despite government policies aimed at preventing discrimination against social tenants, landlords already have the legal right to refuse tenants on affordability grounds. This mirrors practices in other sectors, such as mortgage lending, where applicants on benefits may be declined due to financial risk. The government’s approach does not fully address these underlying affordability issues, potentially leading to fewer landlords willing to accommodate social tenants.

Consequences for landlords and tenants

The current policy environment risks increasing homelessness and placing greater pressure on temporary accommodation services. Social tenants who might have secured private rental accommodation may instead face housing insecurity. Councils are likely to experience rising costs associated with homelessness, while landlords may encounter more Section 8 evictions and County Court Judgments (CCJs).

There is a clear need for a balanced rental system that delivers justice for both landlords and tenants, recognising the legitimate concerns and grievances of each party. Without such balance, the sector may see worsening relations and increased financial and administrative burdens for landlords.

Measuring the impact of the Renters’ Rights Act

To assess the effectiveness of the Renters’ Rights Act, the following success criteria could be considered:

1. Changes in council temporary accommodation costs and occupancy levels.
2. Trends in Section 8 eviction notices and County Court Judgments.
3. Average court processing times from case initiation to eviction.

Monitoring these indicators would provide insight into how the Act affects landlords and tenants in practice and whether it achieves its intended goals.

Looking ahead: support for landlords

In response to ongoing challenges, the Tenant and Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This initiative will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are encouraged to register their interest to participate in this valuable resource.