Goodlord’s recent study indicates that over half of letting agents are acting with greater caution when referring potential tenants to landlords, following the implementation of the Renters’ Rights Act. The poll indicates that 51% of agents have made their screening processes stricter compared to the previous year, while 26% of landlords claim they are more inclined to reject applications that were previously acceptable.
Furthermore, 31% of landlords expressed a preference to leave units empty while seeking lower-risk tenants instead of accepting what they deem marginal applications. This heightened scrutiny is linked to specific elements within the new law, such as the ban on Section 21 no-fault evictions, limits on prepaid rent, and rules stopping bids above the asking price. These legislative updates have reshaped the risk assessment for both property owners and their representatives.
William Reeve, Goodlord’s chief executive, warned that specific demographics may struggle to secure housing. “Students, foreign nationals and those with non-traditional incomes are likely to fare the worst, becoming ‘outsiders’ in an increasingly cautious market,” he remarked. While buy-to-let lending is beginning to show signs of expansion, the strict vetting process may eventually affect the rental stock.
Attitudes differ widely among industry groups. Although the rate of pessimism among agents has dropped from 48% to 40% over the last year, there is a disparity based on firm size. Larger agencies with 11 or more employees recorded 42% optimism, whereas smaller firms with five or fewer staff members only managed 28%.
Landlords remain the most pessimistic group, though their negativity has slightly dropped from 78% to 69%. Portfolio landlords managing six or more units were the most pessimistic, at 81%, compared to 63% among owners of a single property.
Reeve reflected on the market’s current state: “This time last year, the industry was bracing itself for a seismic shift. Now that the initial dust is settled, you can almost hear the market exhaling.” He warned that the divide in sentiment “doesn’t bode well when it comes to persuading landlords to stay in the market,” a risk that could reduce rental supply amid ongoing economic pressures.