Landlords cite Section 21 reforms as the main concern, with many planning stricter vetting
A quarter of landlords are considering selling up in response to the Renters’ Rights Act, with many of those staying in the sector planning to tighten how they assess prospective tenants.
In a survey of more than 900 UK landlords by LegalforLandlords, results showed that 24% intend to leave the market altogether, while a further 13% expect to reduce the number of properties they let.
The research also indicates a shift in underwriting behaviour at the point of letting: 60% of landlords who plan to remain said they would apply stricter criteria when choosing tenants.
LegalforLandlords said the changes proposed under the Act — including the abolition of Section 21 “no fault” evictions and the end of Assured Shorthold Tenancies, to be replaced by Assured Periodic Tenancies — are shaping landlords’ risk appetite. The firm reported that 77% of respondents said they understood the legislation, while 63% believed it would increase the risks they face.
Asked to identify their main concerns, 43% cited the removal of Section 21, and 20% pointed to the replacement of Assured Shorthold Tenancies. LegalforLandlords said the combined effect would be to make it harder for landlords to regain possession without defined grounds, potentially extending the period a tenant can remain in a property.
The study suggests this is translating into more intensive front-end checks. Half of landlords said they would make tenant vetting more stringent, including 25% who planned to do so “significantly”. When asked which checks would take priority, 22% said they would strengthen income and affordability assessments; 19% expected to place greater weight on references from previous landlords; and 16% said they would increase the use of credit history checks and employment verification.
The research also points to a greater reliance on third-party support to reduce arrears risk. More than half of respondents (53%) said they were more likely to require a rent guarantor. LegalforLandlords added that 60% of landlords said they would be less inclined to let to tenants they viewed as higher risk, including those on lower incomes or with limited rental history.
“It’s clear from our research that many landlords are approaching the Renters’ Rights Act with a degree of uncertainty, and that’s entirely understandable given the scale of change being introduced,” said Sim Sekhon (pictured right), group chief executive of LegalforLandlords. “For some, particularly those who have relied on more traditional routes to regain possession, this represents a significant shift in how the sector operates.
“However, it’s important to keep that concern in perspective. The reforms are not about removing landlords’ rights, but reshaping them. Landlords who carry out thorough tenant vetting, maintain high-quality properties and take a professional approach to management are unlikely to find themselves disadvantaged. Crucially, there are still clear and workable routes to regain possession, whether in response to problematic tenant behaviour or where a landlord needs to sell or move back into a property.”
Sekhon, however, said that what concerned him more was the proportion of landlords considering leaving the sector altogether. “A reduction in supply at that scale has clear implications for the wider market, particularly at a time when demand for rental homes remains consistently strong,” he stressed.
“Inevitably, that imbalance risks pushing rents upward and making it harder for tenants to access suitable accommodation. At the same time, it does mean that landlords who remain in the sector may benefit from reduced competition and sustained demand for well-managed rental homes.
“As the industry adapts, the focus should be on clarity, education and confidence. With the right understanding of the new framework, landlords can continue to operate successfully within it, while contributing to a more stable and sustainable rental market overall.”
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