Landlords tighten checks and raise rents after Renters Rights Act

Landlords tighten checks and raise rents after Renters Rights Act

Since the Renters’ Rights Act took effect in May 2026, nearly 40% of landlords have increased referencing checks and a third now require guarantors, reflecting a more cautious approach amid tougher possession rules.

A year after the Renters’ Rights Act became law, UK landlords are adapting their letting practices rather than exiting the market. According to the August Landlord Survey 2026 of 276 landlords, 39% have tightened referencing or affordability checks, and 32% now ask for a guarantor where they previously did not. These changes have been made since the Act’s main provisions commenced on 1 May 2026.

Vicki Hextall, Area Manager at East Midlands Property Owners (EMPO), said landlords are managing risk more carefully now that regaining possession is slower and less certain. She noted that this shift is focused on the start of tenancies, with landlords aiming for better tenant vetting rather than abandoning their portfolios.

Survey reveals landlord responses and market trends

The survey found that 29% of landlords plan to reduce or sell their portfolios within two years, closely matching the 31% figure from the government’s 2024 English Private Landlord Survey conducted before the Act. Meanwhile, 34% aim to grow their holdings and 29% expect to maintain their current size. Most landlords (69%) intend to relet properties as they become vacant.

Landlords with five to nine properties have been the most active in changing their tenant screening, with 54% now requiring guarantors and 46% increasing asking rents. Larger landlords owning 20 or more properties are more likely to have initiated possession claims, with 37% having served or begun court proceedings, compared to 20% overall.

Across all landlords surveyed, 33% have raised asking rents on new lets, and 26% have increased rent on existing tenancies. The Act’s rent in advance cap at one month has removed the option of requesting several months upfront, pushing landlords toward guarantors as an alternative form of security.

Tenant behaviour under the new legal framework

Tenants are increasingly exercising their new rights under the Act. One-third of landlords have faced complaints referred to deposit schemes, councils, or ombudsmen. Pet requests have risen, with 28% of landlords reporting tenant applications to keep pets. Additionally, 26% have encountered tenants challenging or refusing rent increases, and 23% have received notices from tenants under the Act’s updated rules.

The Act prohibits landlords from refusing applicants based on benefit receipt or having children, reinforcing protections for tenants. This has required landlords to adjust their tenant selection processes to comply while still managing financial risk.

Implications for landlords and tenants in practice

For landlords, the Renters’ Rights Act has shifted the focus to the start of tenancies. Enhanced referencing and affordability checks, along with more frequent guarantor requirements, aim to mitigate the increased difficulty in regaining possession. Landlords are advised to apply consistent, documented processes to avoid blanket policies that could exclude good tenants unnecessarily.

Tenants with limited or irregular credit histories may find it harder to secure tenancies without guarantors, as the Act’s rent in advance cap removes the option to offer several months’ rent upfront. This makes the role of guarantors more prominent, especially among mid-sized landlords who have been most active in this change.

Rent increases on new and existing tenancies reflect landlords’ efforts to balance income with the costs and risks imposed by the new legal environment. However, landlords must remain mindful of the Act’s protections against unfair rent hikes and tenant challenges.

Ongoing uncertainties and what landlords should watch

While the Act’s initial impact is clear, several areas remain uncertain. The forthcoming landlord database and ombudsman service, referenced by Richard Samuel of August, may further influence landlord practices and tenant protections. How these will operate and be enforced is still evolving, requiring landlords to stay informed and adaptable.

There is also concern about the potential for longer void periods if overly cautious tenant screening excludes viable applicants. Landlords must balance risk management with fair access to housing to avoid extended vacancies.

Landlords should monitor updates to official guidance and regulatory developments, particularly regarding possession procedures and tenant dispute resolution. Keeping detailed records of tenant assessments and decisions will be increasingly important to demonstrate compliance and protect against complaints.

What landlords should consider now

• Review and update tenant referencing and affordability check procedures to ensure consistency and fairness.
• Assess the use of guarantors carefully, applying them based on individual risk rather than blanket policies.
• Document all tenant application decisions and the reasons behind them to support compliance and dispute resolution.
• Monitor rent setting practices to align with legal limits and tenant rights under the Act.
• Stay informed about the development of the landlord database and ombudsman services to prepare for new compliance requirements.

Supporting landlords through evolving regulation

The Landlord Association (TLA) offers members practical information and compliance resources to help manage changes brought by the Renters’ Rights Act. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist landlords and letting agents in organising property records, managing rental documents, and recording key actions such as tenant referencing and rent changes.

ORBIT aims to support landlords in maintaining consistent processes and retaining evidence of compliance, which will be increasingly important as new regulatory bodies and dispute mechanisms come into effect. Membership also provides access to up-to-date guidance and expert advice tailored to the private rented sector.

Exploring TLA membership and ORBIT BETA access can help landlords keep pace with regulatory developments and maintain effective tenancy management under the Renters’ Rights Act.

Looking ahead, landlords should prioritise clear, fair tenant assessment processes and thorough record-keeping to manage the risks and opportunities presented by the evolving legal framework.

Sources: Landlord Today