Ending fixed rate tenancies seen as most damaging reform for landlords

Ending fixed rate tenancies seen as most damaging reform for landlords

A recent survey reveals that the abolition of fixed rate tenancies under the Renters Rights Act has been the most challenging change for landlords, leading to increased tenant vetting and cautious letting practices.

The 2026 State of the Lettings Industry Report, conducted by Goodlord, surveyed over 3,000 participants including landlords, lettings professionals, and tenants. It highlights that the removal of fixed term tenancies and the prohibition on taking more than one month’s rent in advance have significantly impacted landlords’ approach to letting properties.

According to the report, many landlords have responded to these reforms by becoming more selective about tenants, reflecting concerns about rental income security and tenancy stability. The changes introduced by the Renters Rights Act (RRA) have reshaped the private rented sector’s operational norms, especially for smaller landlords and letting agents managing modest portfolios.

Survey findings on tenancy reforms and landlord responses

The Goodlord report draws on responses from 442 lettings professionals, 589 landlords, and 2,000 tenants, making it one of the largest lettings industry surveys to date. It identifies the ending of fixed rate tenancies as the most damaging aspect of the RRA reforms from a landlord perspective.

The RRA made it illegal for landlords to demand more than one month’s rent upfront, a move intended to reduce financial barriers for tenants but which has altered landlord risk management. Without the security of fixed term agreements and substantial rent in advance, landlords face greater uncertainty about tenant reliability and rent arrears.

This has led to more rigorous tenant referencing and a cautious approach to tenant selection. Landlords are reported to be scrutinising applications more closely, potentially reducing access for some prospective tenants but aiming to protect their rental income and reduce void periods.

Context of tenancy law reforms and sector impact

The Renters Rights Act represents a significant shift in tenancy law, aiming to enhance tenant protections and affordability. However, these changes have also introduced new challenges for landlords, particularly those with smaller portfolios who rely on predictable income streams.

Fixed term tenancies provided landlords with a defined rental period and some security of income, facilitating financial planning and mortgage arrangements. Their removal means that most tenancies now default to periodic agreements, which can be ended by tenants with relatively short notice, increasing turnover and administrative burdens.

Additionally, capping rent in advance to one month reduces landlords’ ability to buffer against potential rent arrears or early termination. This has heightened concerns about financial risk, especially in a market where tenant demand and affordability pressures are already complex.

Practical implications for landlords and letting agents

For landlords, particularly those managing smaller portfolios, these reforms necessitate a more cautious tenant acceptance strategy. Enhanced tenant referencing and credit checks are becoming standard practice to mitigate risk. Letting agents are likely to see increased demand for support in tenant vetting and compliance with the new legal framework.

Landlords should also prepare for potentially higher turnover rates due to the prevalence of periodic tenancies, which may increase void periods and associated costs. Maintaining detailed records of tenant communications and tenancy agreements is essential to manage disputes and comply with the RRA.

Letting agents must ensure their processes reflect the new rules on rent in advance and tenancy terms, advising landlords accordingly. They may also need to adjust marketing strategies to attract tenants who meet the stricter criteria landlords are adopting.

Areas of ongoing uncertainty and what to watch

While the survey highlights clear trends, some uncertainties remain. The long-term effects of removing fixed term tenancies on rental market stability and affordability are not yet fully understood. There is also potential for further regulatory adjustments as government and sector stakeholders assess the reforms’ impact.

Landlords and agents should monitor any updates to guidance on tenancy agreements, rent collection practices, and tenant referencing standards. The balance between tenant protections and landlord risk remains a contested area, with possible future amendments to the RRA or associated regulations.

Additionally, the practical enforcement of the one-month rent in advance rule and its interaction with other tenancy provisions may evolve through case law or regulatory clarification.

Considerations for landlords moving forward

Landlords should review their tenancy agreements and letting procedures to ensure compliance with the Renters Rights Act. This includes confirming that rent in advance does not exceed the legal limit and that tenancy terms reflect the absence of fixed term agreements.

Enhanced tenant referencing processes should be implemented or updated to address the increased caution landlords are exercising. Keeping comprehensive records of all tenancy-related communications and decisions will be vital in the event of disputes or regulatory inspections.

Landlords may also want to assess their portfolio risk exposure and consider whether their current property management approach aligns with the new legal environment. Engaging with letting agents who are well-versed in the RRA’s requirements can help manage compliance and operational challenges.

Supporting landlords with compliance and management tools

The Landlord Association (TLA) offers membership resources that can assist landlords and letting agents in adapting to these reforms. TLA’s compliance materials provide practical guidance on tenancy agreements, rent collection, and tenant referencing under the Renters Rights Act.

Additionally, TLA is developing ORBIT, a new property management and compliance platform currently available in BETA testing. ORBIT aims to help landlords and agents organise property records, manage rental documentation, and keep track of key compliance actions such as inspections and communications.

While ORBIT is still in testing and does not guarantee compliance, it offers tools that could streamline managing the increased administrative demands resulting from the tenancy reforms. Exploring TLA membership and ORBIT BETA access can provide landlords with up-to-date information and practical support tailored to the evolving rental sector environment.

For landlords and agents, staying informed and organised will be crucial as the sector continues to adjust to the Renters Rights Act’s ongoing impact.

Sources: Letting Agent Today