Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Renters' Rights Act 'Shutting Out Good Tenants', Letting Agent Warns
A London letting agent has warned that the Renters' Rights Act is making it harder for some tenants to find a home. Mo Kanso, managing director of Landstones, says the new rules have made landlords more cautious about who they accept.
Kanso claims international students, business owners and self-employed tenants face growing barriers, even when they have substantial savings. The problem stems from restrictions on rent paid in advance, which took effect in May.
He says landlords now favour applicants with regular UK salaries and straightforward references, leaving those with less conventional finances at risk of losing out.
“The legislation designed to make renting fairer can therefore make it more difficult for certain perfectly good tenants to secure a home,” he told EYE.
Landlords becoming more selective
Before the Renters' Rights Act reforms took effect on 1 May 2026, tenants could offer six or 12 months' rent upfront. This often helped applicants without a UK income or suitable guarantor secure a property.
Kanso says the arrangement was common among overseas students attending Imperial College London, LSE and King's College London. Many come from wealthy families but cannot meet standard UK referencing rules.
Business owners and self-employed tenants face similar problems, with income that may come from investments, dividends or irregular payments rather than a monthly salary.
“Someone might not have a £100,000 PAYE salary arriving in twelve equal monthly payments, but they could have significant savings, investments or receive substantial dividends or business distributions throughout the year,” Kanso said.
The new rules prevent landlords from requiring large advance-rent payments when granting a tenancy. Tenants can still choose to pay rent early after moving in, but landlords cannot insist on such payments as a condition of accepting them.
Kanso says his agency has encountered applicants who promised to make large payments after moving in but later changed their minds, leaving landlords facing greater risk when tenants lack standard references or a suitable guarantor.
“Increasingly, the answer from landlords is simply: ‘I don’t want to take the risk,'” he continued.
Tenants face extra guarantor costs
Kanso says more applicants now rely on professional guarantor companies to secure rental homes. These firms offer landlords added security, but their services come at a price, with some tenants receiving quotes equal to several weeks' rent.
“Unlike rent paid upfront, that money isn’t rent and generally isn’t coming back to the tenant,” he said.
He argues that tenants could end up paying large fees simply because they cannot meet standard referencing rules. International students face particular difficulties, as many have no UK income or local guarantor despite having access to substantial family funds.
Agent calls for review of rental rules
Kanso supports the aim of protecting tenants from excessive upfront demands. However, he believes the rules fail to distinguish between landlords demanding large payments and tenants who want to offer them.
“I completely agree with the principle that regulation needs to protect people from being forced into unaffordable upfront payments,” he said. “But there is an important difference between a landlord demanding twelve months’ rent from…”
Source: Property Industry Eye