Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Landlords Increasingly Selective After Renters’ Rights Act, NRLA Finds

Landlords are becoming much more selective about tenants following the introduction of the Renters’ Rights Act this month, according to new research from the National Residential Landlords Association (NRLA). The NRLA polled 630 landlords just before the Act came into force, revealing increased caution in tenant selection.

The NRLA’s findings indicate that renters with poor credit histories, fluctuating incomes, or limited access to guarantors are now finding it more difficult to secure tenancies. According to the poll, 78% of landlords say the Act is likely to make them more selective about who they rent to.

The Renters’ Rights Act introduces measures such as restrictions on the amount of rent that can be charged in advance. The NRLA states that this will make it more difficult for those with poor or no credit history to demonstrate their ability to sustain a tenancy. Additionally, the Act makes the vast majority of rental agreements open ended, which the NRLA says will make it harder for many tenants to secure guarantors.

The poll also found that 90% of landlords are concerned about the impact of court backlogs when seeking to repossess properties. The NRLA highlights that the Government’s failure to publish a clear plan to ensure the courts process legitimate possession cases more quickly is causing considerable concern in the sector.

These developments are particularly relevant for UK letting agents and inventory clerks, who may see changes in tenant referencing processes and increased scrutiny of applicants’ financial backgrounds as a result of the new legislation.