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

NRLA: Renters’ Rights Act May Limit Access for Financially Vulnerable Tenants

Polling of National Residential Landlords Association (NRLA) members indicates that the Renters’ Rights Act could make it harder for tenants with poor credit histories, fluctuating incomes, or limited access to guarantors to secure rental properties. The research, conducted by Pegasus Insight, found that 78% of landlords expect to become more selective about prospective tenants as a result of the Act.

The findings highlight concerns that those already struggling to access the private rented sector—such as people with unpredictable incomes, international students without a UK credit history or guarantor, and tenants affected by the ongoing freeze in housing benefit rates—could be most affected. The NRLA notes that restrictions on the amount of rent that can be charged in advance, introduced by the Act, may make it more difficult for tenants with poor or no credit history to demonstrate their ability to sustain a tenancy.

The Act also makes most rental agreements open ended. According to the NRLA, this change could make it harder for many tenants to secure guarantors, as it is more difficult to guarantee rent for an indefinite period.

The poll further revealed that 90% of landlords are concerned about court backlogs when seeking to repossess properties for legitimate reasons. Currently, it takes an average of almost eight months for courts to process and enforce possession cases under the system that has replaced no-fault evictions. This includes cases involving serious rent arrears or anti-social behaviour.

These findings are relevant for UK letting agents and inventory clerks, as they may see increased scrutiny of tenant applications and potential delays in property turnover due to court processing times.