Landlords ‘far more selective’ about tenants now Act in force
The NRLA's Ben Beadle says it is a "worrying picture" for renters with property owners being more choosy.
Landlords are much more selective about which tenants they take on after the Renters’ Rights Act came into force this month.
That’s the evidence from the NRLA, which polled 630 landlords about their attitude just before the Act came into place.
Many warnings
It follows many warnings that some renters would find it harder to secure tenancies.
Ben Beadle, Chief Executive of the NRLA (pictured) – who told The Negotiator conference last year that landlords would become more “hard-nosed” – says now: “Today’s findings paint a worrying picture for many renters and serve as an important reminder that reforming the private rented sector comes with considerable risk.
Responsible landlords need confidence that tenants can sustain a tenancy.”
“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.”
More selective
The NRLA research points to renters with poor credit histories, fluctuating incomes or limited access to guarantors as the ones who are finding it difficult.
Eight in 10 landlords – at 78% – say the Act is likely to make them more selective about who they rent to.
Measures in the Act include restrictions on the amount of rent that can be charged in advance. This will make it more difficult for those with poor, or no, credit history to prove their ability to sustain a tenancy, NRLA says.
Open ended
Alongside this, the Act makes the vast majority of rental agreements open ended. This will make it harder for many tenants to secure guarantors.
The poll also found that 90% are concerned about the impact of court backlogs when seeking to repossess properties.
Well, who would have thunk it? “Upgrade” the benefits for existing tenants and wonder why landlords upgrade their rents for current tenants and their demands for new tenants.
I’ve been doing strict referencing on all tenants for a number of years now based on the direction of travel. No doubt government will congratulate themselves as court repossession claims plummet due to landlords exiting the market and the collapse in landlords willing to take the slightest risk with new tenants.
RRA is a poor piece of legislation already tenants are querying why they cannot have a fixed term they feel the act has not made them more secure but less secure also they are arguing that the two months notice from next due rent date is unfair as it is stopping them from moving. Landlords do not like it and it is putting off people coming into the PRS to replace those who leave naturally for many reasons tenants feel it is not flexible and do not understand why they cannot offer a larger deposit to overcome past credit issues. In short for us after 28 days we have yet to speak to either a tenant or landlord who is comfortable with RRA.