At first glance, the Renters’ Rights Act is designed to strengthen tenant protections, improve housing standards, and create a fairer rental system. In theory, it sounds like a long-overdue step in the right direction.

However, in practice, we are increasingly seeing a very different reality unfold — one where the changes are unintentionally making life more difficult for many tenants.

One of the most noticeable trends is a growing number of landlords deciding to step away from the rental market altogether.

These are often not large portfolio landlords, but smaller, long-term property owners — individuals who may own one or two properties and have been renting them out for many years. Many of them have had stable tenants living in their properties for over a decade.

Faced with increasing regulation, legal complexity, and the potential for lengthy and costly court processes, these landlords are making a difficult decision:

• Sell the property
• Leave it empty
• Or move to short-term lets such as Airbnb to reduce risk

As a result, tenants who have lived in these homes for 10+ years are suddenly being asked to leave — not because they have done anything wrong, but because the system itself has become too burdensome for the landlord.

We are also seeing a significant increase in Section 21 Notice being served.

This is happening as landlords prepare for the anticipated abolition of Section 21 under the Renters’ Rights Act. Many are acting now, while they still have the option, rather than risk being tied into situations that may become harder to manage in the future.

This includes:

• Tenants who are not ideal but have not breached tenancy terms significantly
• Tenants who may not maintain the property well
• Tenants who are simply difficult to manage

Previously, these situations might have been tolerated. Now, landlords are taking a more cautious approach — removing risk before the new system comes into force.

Perhaps the most immediate and visible impact is the tightening of tenant referencing criteria.

As landlords anticipate greater difficulty in regaining possession of their property if something goes wrong, they are significantly increasing their screening standards.

Common requirements now include:

• Minimum 6+ months in current employment
• Income of at least 3x the monthly rent
• No CCJs — often not even settled ones
• Strong previous landlord references
• A guarantor (increasingly expected as standard)

For many tenants, especially those who are self-employed, early in their careers, or recovering from past financial challenges, these requirements are becoming nearly impossible to meet.

The Guarantor Expectation: The New Normal

The demand for guarantors has risen sharply.

From a landlord’s perspective, this is understandable. If eviction becomes slower and more complex, the financial risk of rent arrears increases significantly.

But from a tenant’s perspective, this creates a new barrier:

• Not everyone has access to a suitable guarantor
• Many tenants feel uncomfortable asking friends or family
• International tenants are particularly affected

This shift is quietly excluding a large portion of the rental market.

The result of all these changes is a growing group of tenants who are struggling to secure housing:

• Long-term tenants being displaced
• “Average” tenants who no longer meet stricter criteria
• Tenants with minor past financial issues being filtered out
• Good tenants without guarantors being rejected

In many cases, these are not problematic tenants — they are simply people who no longer fit into a system that has become far more risk-averse.

While the intention behind the Renters’ Rights Act is to protect tenants, the reality is that it is also:

• Reducing rental supply
• Increasing competition for available homes
• Encouraging stricter landlord behaviour
• Making access to housing more difficult for many

Landlords are adapting to risk. And when risk increases, so do barriers.

If the goal is to create a fairer and more stable rental market, it is crucial to recognise these unintended consequences.

A balanced system must:

• Protect tenants
• But also keep landlords engaged in the market
• Ensure enforcement is fair and efficient
• Avoid pushing risk to a point where access to housing becomes restricted

Because ultimately, when landlords leave and criteria tighten, it is tenants who feel the impact first.