Is the Renters' Rights Act Making It Harder for Some Tenants to Rent?

The Renters' Rights Act 2025 was introduced to strengthen tenant protections and create a fairer private rented sector. However, new research suggests some changes may be having unintended consequences.

According to Goodlord's 2026 State of the Lettings Industry Report, landlords and letting agents are becoming increasingly cautious when selecting tenants, raising concerns that applicants with poor credit histories, irregular incomes or no UK guarantor could find it harder to secure a rental property.

Landlords Are Becoming More Selective

Goodlord's research, which surveyed 3,031 letting professionals, landlords and tenants, reveals a noticeable shift in how rental applications are being assessed.

The findings show that:

• 26% of landlords are more likely to reject applicants they would previously have accepted.

• 31% of landlords would rather leave a property empty while waiting for a lower-risk tenant.

• 47% of letting agents have recommended against applicants with poor credit histories or County Court Judgments (CCJs).

These figures raise an important question: could legislation designed to protect tenants inadvertently make it harder for some to secure a rental property?

As Goodlord CEO William Reeve explained:

"But every new let is now a bigger commitment for a landlord, so the bar for getting through the door is rising."

This presents a growing challenge for letting agents, who must balance landlords' expectations with finding suitable tenants, particularly those who may not meet traditional referencing criteria.

What Has Changed With Rent in Advance?

One significant change introduced by the Renters' Rights Act concerns the payment of rent in advance.

Previously, some applicants could offer several months' rent upfront to strengthen their application, particularly if they struggled to meet traditional referencing requirements.

Under the new rules in England, which took effect on 1 May 2026, landlords and letting agents cannot request, encourage or accept rent before the tenancy agreement has been signed by both parties.

Once the agreement is signed, they can generally request up to one month's rent before the tenancy begins, or up to 28 days' rent if payments are due more frequently than monthly.

However, there is an important distinction that may not be widely understood.

Once the tenancy has started, tenants can voluntarily choose to pay additional rent early. Landlords can accept these payments, but they cannot require tenants to pay ahead of the agreed due dates.

This means advance payments have not been completely prohibited. What has changed is when payments can be accepted and whether landlords can make them a condition of renting.

Agents may still receive unsolicited offers of advance rent, making it essential to understand when these payments can legally be accepted.

Read the Government's official guidance on rent in advance.

Could Some Tenants Be Disadvantaged?

For applicants with limited credit histories, County Court Judgments (CCJs), irregular income or no UK guarantor, offering additional rent upfront was previously one way of providing reassurance to landlords.

With this option restricted during the application process, some landlords may place greater emphasis on referencing results and perceived financial risk.

Goodlord's research also highlights wider pressures across the rental market:

• 50% of letting agents report fewer available rental properties.

• 45% of letting agents have experienced an increase in tenant enquiries.

With fewer properties available and competition remaining high, tenants who do not meet traditional referencing criteria could face even greater difficulties securing a home.

However, the research does not establish that rent-in-advance restrictions alone are responsible. Changes to possession rules, wider economic pressures and concerns about rental arrears may also be contributing.

Source: Property Reporter – Rental Reforms Prompt Landlords to Become More Selective

What Does This Mean for Letting Agents?

For letting agents, the changes create additional responsibilities around tenant applications, payment handling and compliance.

Understanding exactly when rent can be requested or accepted is essential. Agents must also ensure that payments are recorded accurately, allocated correctly and handled in accordance with client money requirements.

The Government's guidance on permitted tenancy payments provides further information on the restrictions agents must follow.

At The Letting Partnership, we understand the importance of accurate client accounting as regulatory requirements continue to evolve.

Our fully outsourced Client Accounting service manages rent, deposit and fee processing, payments and reconciliations, helping letting agents maintain strong financial controls without adding to their team's administrative workload.

Finding the Right Balance

The Renters' Rights Act aims to improve fairness and security for tenants, but Goodlord's findings suggest the industry must also consider how reforms influence landlord behaviour.

If landlords become increasingly selective, applicants who fall outside traditional referencing criteria could face additional barriers to finding a home.

For letting agents, the challenge is to balance tenant accessibility, landlord confidence and regulatory compliance in an increasingly complex rental market.

Discover how The Letting Partnership can support your agency.