Property platform August says almost 40 percent of landlords have tightened tenant references and affordability checks since the Renters’ Rights Act took effect, with a third now asking for a guarantor. The research was published on 27 October.
The survey of 276 landlords found 29 percent plan to shrink or sell in the next two years, while 34 percent plan to expand and 29 percent expect no change. A third have already had a complaint go to a deposit scheme, council or ombudsman.
Caution is now visible at the front door rather than the exit. With no-fault evictions gone and regaining a property taking longer, many owners say they are screening harder before a tenancy starts.
Guarantor demands rise
August said almost four in ten owners are stricter on references, and a third seek a guarantor. Problems after letting remain common, with 28 percent reporting a pet request, 26 percent facing a challenge or refusal over a rent rise, and 23 percent having a tenant give notice under the new rules.
Vicki Hextall, area manager at East Midlands Property Owners, told The Negotiator landlords are pricing risk at the selection stage. “Landlords aren’t walking away from the sector, they’re becoming more careful about who they let to,” she said. “With almost four in ten tightening their referencing, it’s clear landlords are managing risk now that regaining a property takes longer and is less certain.”
She added: “The concern is that tenants with thinner credit histories or irregular incomes find it harder to get a foot in the door.”
Awareness gap stays wide
More than three quarters of landlords were unaware of the rental database being rolled out later this year. Only 23 percent knew about the need to register under the Act, August said.
The findings fit wider evidence of tougher selection. Recent industry polling has shown agents reporting more care over tenant choice, while ministers have urged landlords to consider alternatives where tenants lack a prior landlord reference.
This follows Landlord Knowledge’s report on Connells’ warning that the rent-in-advance cap locks out nurses and students, which showed how upfront payment limits push more weight onto checks and guarantees. The August data suggests that shift is now widespread.
Landlords reviewing their process should revisit the August finding that only 23 percent knew about the mandatory database. Getting referencing right without registering correctly would still leave owners exposed.
The legal baseline is set out in the government’s overview of the Renters’ Rights Act for landlords, which covers tenancy terms, information duties and enforcement.
What this means for landlords
- If you let to sharers, students or contractors: set a written referencing bar now – income multiples, ID, right to rent and guarantor terms – and apply it evenly.
- If you already ask for guarantors: use a clear deed, check the guarantor can pay, and keep proof of affordability checks for any later dispute.
- Watch for: discrimination risk when refusing thinner files – record objective reasons and offer alternatives where reasonable.
- Bottom line: stricter checks cut arrears risk but narrow the tenant pool – pair them with registration and paperwork so a good let is also a compliant let.
Editor’s view
Selectivity is rational when exits are slow and costly, but it cannot fix ignorance of the basics. Tighten the file by all means, yet sort registration and the information sheet at the same time.
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 04 November 2026
Sources: August, East Midlands Property Owners, The Negotiator, GOV.UK
Related reading: Connells warns rent-in-advance cap locks out nurses, students
