The introduction of the Renters’ Rights Act, which restricts advance rent payments to no more than one month, is prompting landlords to reconsider their approach to tenant screening and letting. Recent research from the Lettings and Residential Group (LRG) reveals that many landlords are still unclear about the new rules and are concerned about the impact on tenant risk profiles and the availability of rental properties.

Landlords’ awareness of the new rules

LRG’s latest Lettings Report, drawing on responses from 650 landlords and tenants across England and Wales, highlights that fewer than a third of landlords are fully aware of the advance rent payment cap. Meanwhile, 43% know the rules have changed but remain uncertain about the specifics, and 26% were completely unaware of the restriction until recently.

Concerns over higher-risk applications and sector exit

Allison Thompson, Chief Lettings Officer at Leaders (part of LRG), acknowledges the Act’s tenant protections but warns of unintended consequences. She states, “When more than half of landlords expect to see higher-risk applications as a direct result of removing advance rent, and 17% are considering leaving the sector altogether, we have to ask whether the rules are working as intended.”

Thompson emphasises that tenants who require stability the most may face the greatest challenges if rental supply diminishes further.

Impact on tenant quality and landlord behaviour

The survey indicates that 58% of landlords anticipate receiving more borderline or higher-risk tenant applications, with 18% expecting a significant increase. Conversely, only 10% believe the quality of applicants will improve under the new rules.

In response, 38% of landlords are reconsidering their continued involvement in letting or planning to be more selective about prospective tenants, while an additional 6% say they will be slightly more selective. The most common adjustment, reported by 42% of landlords, is to rely more heavily on letting agents for tenant screening.

LRG suggests that professional screening services will become increasingly important as landlords navigate the new regulatory landscape and reassess risk.

Concerns over housing options for vulnerable tenants

The report raises significant concerns about housing availability for tenants who struggle to compete in the open market. It notes that 70% of landlords would not consider letting to local councils or housing associations, with fewer than 1% currently doing so.

Among tenants surveyed, 69% described themselves as heavily or completely dependent on the private rented sector, with no alternative housing options. LRG warns that any further reduction in available homes or tightening of landlord selection criteria will disproportionately affect those tenants with the fewest alternatives.

What this means for landlords

Landlords face a challenging environment where regulatory changes intended to protect tenants may inadvertently reduce rental supply and increase perceived tenant risk. The shift away from advance rent payments limits landlords’ financial security upfront, prompting many to adopt stricter tenant screening processes or reconsider their participation in the market.

Greater reliance on letting agents for applicant vetting is expected, potentially increasing operational costs and complexity. Landlords must balance compliance with the Act while managing risk and maintaining viable rental businesses.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/