Landlords are becoming more cautious about who they let to after the Renters’ Rights Act took effect, with 78 percent saying the changes are likely to make them more selective about prospective tenants.
The figure, based on a survey of 630 landlords cited across industry coverage on 27-28 May, points to a harder market for applicants with weak credit files, uneven income or limited access to guarantors. The policy risk for ministers is clear: rules designed to protect tenants may also make it harder for financially marginal renters to secure a home.
For landlords, the issue is not simply preference. It is about how risk is managed once Section 21 is gone, tenancy terms are open-ended and upfront rent options are tighter than before. In that setting, the margin for a poor letting decision is smaller.
Why referencing is moving to the front of the process
Landlords have long screened tenants, but the new regime raises the stakes. If possession takes longer and court delays remain stubborn, many landlords will place more weight on affordability, income stability and guarantor strength before a tenancy starts.
That creates a tougher path for self-employed applicants, workers with fluctuating hours and renters who previously relied on paying more rent in advance to reassure a landlord. It also increases the value of paperwork that stands up if a tenancy later runs into trouble.
This follows Landlord Knowledge’s report on the PRS Database being used for landlord enforcement checks, which highlighted how compliance and record-keeping are becoming more central to day-to-day letting. Combined with earlier coverage of tougher council enforcement under the Act, the latest survey suggests landlords are reacting by tightening controls at the front end of the tenancy as well as on compliance afterwards.
Court delays still shape landlord decisions
Separate findings in the same survey showed deep concern about possession timelines. That matters because even a well-run tenancy can become expensive if arrears build and the route to regain possession remains slow.
For investors with smaller portfolios, that risk is particularly acute. A single failed tenancy can damage cash flow quickly, especially where mortgage costs, repair bills and compliance spending are already high. The practical result is likely to be a market that favours applicants with cleaner files and stronger supporting documents.
That may leave some renters with fewer options, not because demand has vanished but because landlords are pricing in operational risk more aggressively. The government still has time to ease some of that pressure, but only if court reform and clear guidance keep pace with the law itself. Official guidance on the new tenancy framework is available from the NRLA’s Renters’ Rights Act guide.
What this means for landlords
- If you’re letting now: review referencing standards and guarantor processes before your next tenancy starts.
- Watch for: how quickly possession claims move through the courts in the first full months under the new regime.
- Bottom line: the Act is pushing landlords to treat tenant selection as a bigger risk decision than before.
Editor’s view
The politics of the Renters Rights Act promised better security for tenants. The market response may be colder than ministers expected. If court reform stays slow, the safest-looking applicant will keep winning.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 28 May 2026
Sources: NRLA
Related reading: Councils told to take proactive line on RRA enforcement
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
