Renters Rights Act backfires as landlords reject more tenants

Renters Rights Act backfires as landlords reject more tenants


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A new analysis shows that four months into the Renters Rights Act, its unintended consequences are now becoming clear. 

New data from The Lettings Hub reveals a shift in landlord and tenant behaviour that many in the industry predicted during the Act’s passage through Parliament – but which MPs ignored.

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Some 80% of letting agents report that landlords are being more cautious when selecting tenants. 

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The survey authors say this is not driven by reduced profitability, but by a loss of confidence in the eviction process. 

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With 95% of letting agents say they lack confidence in the courts under the new regime. 

Agents also identified court delays as their biggest concern, while they noted landlords’ primary worry has been the removal of Section 21.

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Beth Richardson, Head of Operations at The Lettings Hub, says: “Landlords are right to feel they need to be more careful, but excessive caution risks shrinking the supply of homes exactly when tenants need them most. 

“The answer is not to say ‘no’ more often. It is to reference tenants thoroughly, use professional guarantors where needed, and give landlords clear, practical guidance on the new possession process. That is how we keep the market functioning.”

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Nearly two-thirds of letting agents report that rental supply has fallen, with 91% attributing this to landlords selling their properties. 

To read the full report, visit: https://bit.ly/3Vew5t7 

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