Landlords are preparing to tighten tenant selection criteria ahead of the Renters’ Rights Act coming into force as concerns grow over tougher eviction rules.
Research from Paragon Bank found that 69% of landlords plan to introduce more in-depth checks on prospective tenants, while 70% will become more selective about where they advertise their properties.
The shift comes just weeks before the 1 May 2026 implementation date, when Section 21 ‘no-fault’ evictions will be abolished and all tenancies move to a more regulated framework.
While three quarters of landlords said they feel prepared for the changes, 42% expect the removal of Section 21 to have the biggest impact on their business. Around 43% also flagged concerns about problematic tenants, including arrears and anti-social behaviour.
CAUTIOUS APPROACH
Over the past year, 41% of landlords reported late or missed rent payments, while 27% dealt with anti-social behaviour and 22% said tenants had stayed longer than intended.
The changes are also expected to have a knock-on effect on rents and portfolio management. More than half of landlords (53%) said they would consider increasing rents, while 37% plan to review pricing more frequently and 18% are looking at cutting costs.
Many are also calling for reform of the court system, with 65% saying faster possession processes are needed under the new Section 8 regime.
EXPANSIVE CHECKS
Lisa Steele (main picture), Mortgage Lending Director at Paragon Bank, says: “The Renters’ Rights Act represents a major policy shift, and landlords are adapting their approach accordingly.
“Given the pressures expected on the courts through the change to the eviction process, landlords are understandably planning to make more expansive checks on prospective tenants as they don’t want the cost and time involved in a lengthy eviction process.”
CLEAR GUIDANCE
She adds: “This creates challenges for those new to the rental market who have not yet built-up a tenant reference history, as well as those with infrequent income schedules. This was always the challenge for the RRA; while in brings in extra protections, it could exclude some of those tenants at the periphery of the market.
“Clear, practical guidance will help landlords implement the changes efficiently with as little disruption to their businesses and their tenants, and we’re continuing to share resources through our Renters’ Rights Act hub to support landlords and brokers as they embed the new rules.”
