UK letting agents increase tenant screening under Renters’ Rights Act

New research from Goodlord indicates that the implementation of the Renters’ Rights Act is causing landlords and letting agents to become more selective with prospective tenants. According to the survey, 51% of letting agents have increased their caution when recommending tenants to landlords compared to last year, while 26% of landlords report they are more likely to reject applicants they previously would have accepted.

Approximately 31% of landlords stated they would prefer to leave properties vacant while searching for lower-risk tenants rather than accepting marginal applications. This shift in behavior is linked to legislative changes, including the abolition of Section 21 no-fault evictions, caps on rent paid in advance, and restrictions on rental bidding.

Goodlord CEO William Reeve warned that these changes could create a two-tier market, noting that students, foreign nationals, and individuals with non-traditional incomes may face significant difficulties securing housing. While agent pessimism has decreased slightly from 48% to 40%, optimism levels vary by company size, with larger agencies reporting higher confidence than smaller operators.