A year after the Tenants’ Bill of Rights, landlords are responding to it at the start of a lease rather than leaving the market, a survey by property management platform August revealed.
Since the Tenants’ Bill of Rights came into effect on May 1, nearly four in 10 landlords (39%) have tightened their reference or affordability checks, and a third (32%) are now requiring a guarantor where they did not before.
Looking ahead to the next two years, 29% of owners plan to reduce or sell their portfolios entirely.
This is almost identical to the 31% figure the government found in its 2024 English private landlords survey, which was conducted before the law came into effect.
A third (34%) plan to grow, 29% plan to stay as is, and 69% say they will re-rent the next property that becomes vacant. So far, 15% have decided not to re-rent a property, and 13% have sold or listed it.
Meanwhile, the survey found that 56% of sole proprietors would not have changed anything.
Among landlords who own between five and nine properties, 54% are now requiring a guarantor and 46% are raising their asking rents.
Landlords with 20 or more properties are most likely to go to court, with 37% bringing or starting a possession claim, versus 20% of landlords overall.
It was found that 33% raised the required rent on the new rent and 26% increased the rent on the current rent.
Elsewhere, 32% of landlords have had a complaint referred to the filing system, council or ombudsman, while a further 28% have had a tenant request to keep a pet, 26% have had a tenant object to or refuse a rent increase and 23% have had a tenant notice under the new rules.
August chief executive Richard Samuel says: “After a year, the most obvious change the law has made is to the beginning of the lease, not the end of the contract. This is a sensible response, as long as it relies on a consistent process rather than blanket rules.”
“A landlord who applies the same controls to every applicant and records the reason for each decision is better protected than a landlord who requires a guarantee from everyone. This protection will be even more important once the landlord database and ombudsman arrive. Blanket rules also drive away good tenants and leave homes empty for longer.”
East Midlands Property Owners area director, Vicky Hextall, also commented: “Landlords are not moving away from the sector, they are becoming more careful about who they let in.”
“With nearly four in ten tightening their references, it is clear that landlords are managing risk now that property recovery is taking longer and less certain.”
“The concern is that tenants with poor credit histories or irregular income find it difficult to get a foot in the door. Good references and good tenancy management go hand in hand, and this is where we focus our support and advice to members.”
