A huge number of landlords are planning to exit the PRS directly because of the Renters’ Rights Act, a leading law firm warns.

The exodus could amount to a quarter of all landlords, according to research by LegalforLandlords, with the Act due to come into force this week.

Nearly half – at 43% say their biggest area of concern is the abolition of Section 21 ‘no fault’ evictions.

Clear implications

Sim Sekhon, Group CEO at LegalforLandlords, says: “What is more concerning is 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 says.

“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.”

Stricter criteria

The research also reveals 60% of those landlords who plan to keep going, plan to implement much stricter criteria when vetting tenants.

They are now less likely to let to ‘high risk’ tenants, such as those who are on lower income, or have a limited rental history.

Income and affordability checks are set to face greater scrutiny, with more than half of landlords saying they will require rent guarantors.

One in five are most concerned about the banning of Assured Shorthold Tenancies, which are to be replaced by Assured Periodic Tenancies.

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