The UK’s Private Rented Sector may be on the brink of a major structural shift as the forthcoming Renters’ Rights Act (RRA) moves closer to becoming law. London‑based LegalforLandlords is warning that, while the legislation aims to strengthen tenant protections, it may also create a growing cohort of renters who become “unlettable” in practice—not because they are legally barred from renting, but because landlords are tightening their risk controls in response to reduced safeguards.
If approved on May 1st, the RRA will remove Section 21 no‑fault evictions and introduce periodic tenancies across England, changes that significantly alter how landlords manage risk. With court delays already stretching possession cases into many months, UK landlords are preparing for a future in which regaining a property after non‑payment becomes slower, costlier, and less predictable. As a result, affordability, financial resilience, and referencing strength are becoming the decisive filters for tenant selection.
“The intention behind the Renters’ Rights Act is clear and, in many respects, necessary,” said Sim Sekhon, Group CEO at LegalforLandlords. “It aims to create a fairer, more secure rental market for tenants. However, as with any significant regulatory shift, there are knock‑on effects that cannot be ignored.”
One of the most immediate consequences is likely to be rising affordability thresholds. Many UK landlords are expected to move from the traditional 2.5× rent benchmark to closer to 3×, particularly in high‑cost regions such as London and the South East. This shift alone could exclude large numbers of otherwise reliable renters, creating a mismatch between demand and eligibility. Properties may attract plenty of enquiries yet still sit empty due to repeated referencing failures—a form of hidden vacancy that masks the true level of market pressure.
Referencing processes are also set to become more stringent and slower. Applicants with irregular income, weaker credit histories, or reliance on benefits may find themselves filtered out before even viewing a property. Letting agents, facing higher fall‑through rates, are expected to pre‑screen more aggressively to minimise void periods. Guarantors will play a larger role too, shifting from optional to—in many cases— essential, adding friction late in the process and increasing the likelihood of collapsed deals. Meanwhile, insurance requirements are tightening in parallel, and rent guarantee products are expected to adopt stricter underwriting.
Together, Sekhon says these pressures are likely to reinforce a more conservative stance among UK landlords.
“What we are seeing is a natural recalibration,” he said. “As landlords lose certain safeguards, many will look to mitigate risk elsewhere, most commonly through stricter affordability criteria. The challenge is that this can unintentionally exclude otherwise reliable tenants who may fall just short on paper.”
LegalforLandlords argues that the challenge ahead is not a shortage of renters, but a shortage of renters who can pass the increasingly demanding criteria. As agents take on more of a risk‑management role, the sector may see a widening divide between those who can secure a tenancy quickly and those repeatedly rejected despite being legally eligible.
