A property investor with a portfolio of 70 properties worth £10 million has expressed support for the Renters’ Rights Act, stating it will remove underperforming operators from the market.
Rick Gannon told BBC News that the legislation represents “the biggest change we’ve seen in this industry for many, many years” and that he believes “most of it is for the better”.
Industry concerns over Section 21 abolition
Gannon’s position contrasts sharply with the majority of landlords, who have opposed key measures in the Act, particularly the abolition of Section 21 ‘no fault’ evictions and fixed-term tenancies.
Other landlords quoted in the BBC report highlighted operational challenges, including one case where a tenant owes £15,000 in unpaid rent and refuses to vacate, and another where tenants caused £8,000 in property damage.
Potential landlord exodus
Research by LegalForLandlords suggests approximately 25% of landlords may exit the private rental sector due to the new legislation. The study found that 43% of landlords identified the removal of Section 21 as their primary concern.
The research also revealed that 60% of landlords intending to remain in the sector plan to implement stricter tenant vetting procedures. These measures are expected to disproportionately affect lower-income applicants and those with limited rental histories, similar to recent concerns about zero-hours workers facing rental exclusion.
Stricter tenant criteria
More than half of continuing landlords indicated they will require rent guarantors going forward, with income and affordability checks facing increased scrutiny. The tightening of criteria may reduce access to rental properties for groups already considered higher risk.
The contrasting views reflect broader tensions in the rental market as the sector adjusts to regulatory changes. While some landlords view the reforms as necessary improvements to tenant protections, others cite concerns about property management challenges and reduced flexibility in addressing problematic tenancies, an issue highlighted in cases of landlord-tenant disputes requiring legal intervention.
