"Given the pressures expected on the courts through the change to the eviction process, landlords are understandably planning to make more expansive checks on prospective tenants as they don't want the cost and time involved in a lengthy eviction process"
- Lisa Steele - Paragon Bank
Nearly seven in 10 landlords plan to introduce more stringent tenant selection processes ahead of the Renters' Rights Act coming into force on 1 May 2026, according to new research from Paragon Bank.
The survey of 500 landlords found that 69% will carry out more in-depth checks on prospective tenants to reduce the likelihood of entering the tougher eviction process introduced under the Act, while 70% say they will also become more selective about where they advertise their properties.
Eviction reforms driving landlord concern
Three-quarters of landlords say they feel prepared for the commencement date, but concerns remain significant. Some 42% identified the end of Section 21 no-fault evictions as the change most likely to affect their business, and 43% expressed concern about the risk of problematic tenants, including those in rent arrears or displaying anti-social behaviour.
The research suggests those concerns are grounded in recent experience. Over the past 12 months:
- 51% of landlords dealt with at least one instance of rent arrears or a late rental payment
- 27% encountered anti-social behaviour from tenants
- 22% experienced tenants staying in a property beyond the agreed term
- 18% suffered damage caused by pets
With Section 21 removed, landlords will need to rely on Section 8 grounds for possession. Some 65% are calling on the government to implement faster court processes to minimise delays under the new regime, and 39% believe the number of mandatory grounds for possession needs to be increased.
Financial impact prompts rent and cost reviews
Just over a third of landlords, 35%, expect the Renters' Rights Act to affect them financially, and many are already planning adjustments to stay profitable.
More than half, 53%, say they will consider raising rents, 37% plan to review pricing more frequently, and 18% will look to make cost savings across their portfolios, which could include changes to the level or frequency of maintenance and white goods replacement.
What this means for tenants on the margins
"The Renters' Rights Act represents a major policy shift, and landlords are adapting their approach accordingly," said Lisa Steele, mortgage lending director at Paragon Bank (pictured).
"Given the pressures expected on the courts through the change to the eviction process, landlords are understandably planning to make more expansive checks on prospective tenants as they don't want the cost and time involved in a lengthy eviction process."
"This creates challenges for those new to the rental market who have not yet built up a tenant reference history, as well as those with infrequent income schedules. This was always the challenge for the RRA; while it brings in extra protections, it could exclude some of those tenants at the periphery of the market."
She added: "Clear, practical guidance will help landlords implement the changes efficiently with as little disruption to their businesses and their tenants, and we're continuing to share resources through our Renters' Rights Act hub to support landlords and brokers as they embed the new rules."
