Editor's note: This brief was summarised by The Property AI Team from a report by PropertyWire. Read the original article for full details.
Landlords Increase Tenant Screening After Renters’ Rights Act
Landlords are tightening their tenant selection criteria following the introduction of the Renters’ Rights Act this month, according to new research from the National Residential Landlords Association (NRLA). A survey of 630 landlords conducted just before the Act came into force found that 78% expect to become more selective about prospective tenants.
The NRLA’s findings indicate that renters with poor credit histories, fluctuating incomes, or limited access to guarantors may face particular challenges in securing accommodation. The Renters’ Rights Act introduces several changes to landlord-tenant relationships, including new restrictions on the amount of rent that can be charged in advance. According to the NRLA, these restrictions could make it more difficult for those with poor or no credit history to demonstrate their ability to sustain a tenancy.
The legislation also makes the majority of rental agreements open-ended, which may complicate the process for tenants seeking guarantors for indefinite commitments. These changes come amid recent patterns of weaker demand across UK housing markets.
The NRLA survey also revealed that 90% of landlords are concerned about the impact of court backlogs when seeking to repossess properties. The findings suggest that regulatory changes intended to protect renters may inadvertently create barriers for those already facing challenges in securing rental accommodation. Industry observers note that these developments could reshape tenant demographics in the private rental sector and affect investment strategies in the buy-to-let market.
Source: PropertyWire