Renters with poor credit histories, fluctuating incomes or limited access to guarantors face finding it even harder to secure a home as landlords respond to increased risks under the Renters Rights Act.

New polling of National Residential Landlords Association (NRLA) members by the research consultancy Pegasus Insight found that eight in ten landlords (78%) say the Act is likely to make them more selective about who they rent to.

The findings raise concerns that those already struggling to access the private rented sector could be hit hardest.

This includes people with unpredictable incomes, international students without a UK credit history or UK-based guarantor, and tenants affected by the ongoing freeze in housing benefit rates.

Measures in the Act include restrictions on the amount of rent that can be charged in advance. 

The NRLA claims this will make it more difficult for those with poor, or no, credit history to prove their ability to sustain a tenancy.

Alongside this, the Act makes the vast majority of rental agreements open ended. This will make it harder for many tenants to secure guarantors, given the difficulty of agreeing to guarantee rent for an indefinite period. 

The poll also found that 90% of landlords are concerned about the impact of court backlogs when seeking to repossess properties where they have a legitimate reason to do so.

At present, it takes an average of almost eight months for the courts to process and enforce possession cases under the system which has replaced no-fault evictions. 

This includes cases related to serious tenant rent arrears or anti-social behaviour blighting the lives of neighbours and communities.

The President of the Law Society, Mark Evans, has warned that without proper investment in the courts and legal system, the Act risks creating injustices for both landlords and tenants.

Responding to the findings, NRLA chief executive Ben Beadle says: “Responsible landlords need confidence that tenants can sustain a tenancy. If the system makes it harder for them to seek those assurances, the result will be fewer options for those on the financial margins.

“Likewise, the Government’s failure to publish a clear plan to ensure the courts process legitimate possession cases far quicker than at present is causing considerable concern in the sector. 

“Ministers need to set clear targets in which cases should be processed and enforced, with the resources to back this up.

“Without this, the government risks undermining landlord confidence at the very moment renters need more homes, not fewer.”