Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlords Raise Rents After Renters' Rights Act Implementation
More than a third of landlords have increased rents in response to the Renters' Rights Act, a survey reveals. Tenants' finances have also come under closer scrutiny, with 34% of respondents changing their referencing or affordability requirements.
Buy to let lender Landbay found that 53% believed the legislation had negatively affected their businesses since its implementation. Rent adjustments and tighter tenant referencing were among the most common responses.
For letting agents and inventory clerks, the findings point to a shifting landscape in tenant referencing and affordability checks. With over a third of landlords altering their requirements, agents may need to review their processes to align with updated landlord expectations. The increase in rents also has implications for tenancy agreements and inventory documentation, as new let terms and rental amounts must be accurately recorded.
The survey, conducted by Landbay, highlights that a majority of landlords feel the legislation has had a negative impact on their businesses. This sentiment could lead to further changes in how landlords and agents operate, particularly in tenant selection and financial assessments.
Agents should be aware that referencing and affordability criteria are being revised by a significant proportion of landlords. This may affect the volume of applications and the need for clearer communication with prospective tenants about financial requirements. Inventory clerks may also see changes in check-in procedures if new affordability checks lead to different tenant profiles.
Source: Property118