Letting Agent Says Landlords Lost The Section 21 Safety Net So They Now Screen Tenants Harder And Even Renters With Plenty Of Cash Get Squeezed

When England scrapped the Section 21 eviction route, plenty of people cheered for renters. Five months later, a letting agent in Leeds says the change is producing a side effect that few expected: landlords are screening applicants harder than ever, and even tenants with healthy bank accounts are finding the door harder to open.

A letting agent beside tenant affordability check documents next to a red brick street of homes

The agent behind the YouTube channel Central Properties says his firm manages hundreds of tenants across multiple rental properties in Leeds. Rather than recording another explainer on what the Renters Rights Act says, he wanted to share what his team sees on the ground every day.

His summary is that landlords are becoming more cautious about who they rent to, and he sees a clear pattern.

The Safety Net Landlords Lost

Before the changes, he explains, Section 21 gave landlords another route to regain possession of a property. That option is gone. Landlords now have to rely on the relevant updated possession grounds if they want their property back.

That shift has changed the question landlords ask themselves. It used to be what happens if a tenancy goes wrong. Now, he says, it is how do I stop it going wrong in the first place. More attention is paid to the tenant before the keys change hands.

He is careful to say the risk has not disappeared because of the new rules. It has changed shape, and it has moved to the front of the process.

What Tougher Screening Looks Like

On the ground, his team is seeing more comprehensive referencing, more scrutiny around affordability, more use of third-party referencing companies, and more conversations about guarantors.

Historically, his firm handled much of the referencing itself. The staff checked employment, affordability, previous landlord references and credit history, then made a judgment before recommending an applicant to the landlord. Now they make much greater use of specialist third-party referencing. He stresses that the Act does not require it of agents. They do it because landlords increasingly want extra reassurance that the applicant has been properly checked.

Guarantors are another example. People usually link guarantors with students or applicants who did not meet the normal affordability criteria. Now, he says, his team is having those conversations with some professional applicants in full-time employment too. Again, it is not a legal requirement. It is landlords trying to reduce their exposure before the tenancy starts.

The Renter With Plenty Of Cash

Here is the twist he finds most striking. Picture someone moving to Leeds from overseas with a good job, a good salary and plenty of savings. That person has no UK credit history, no previous landlord references, and nobody in the country who can act as a guarantor.

In the past, one solution could have been to pay something like six months of rent up front. The landlord got extra security and the tenant got the property. The new rules significantly restrict that option, so the landlord’s concern is still there and needs another answer.

That could mean more extensive referencing, additional affordability checks or a guarantor. If the person has no suitable guarantor, they may end up paying for a professional guarantor service, which costs money they did not used to have to spend. As he puts it, you could have a perfectly good tenant with plenty of cash who actually finds it harder or more expensive to secure a home under the new rules.

A Higher Barrier For Some Applicants

His wider point is that the Renters Rights Act gives tenants greater security once they are living in a property, but landlords still have to manage the same risk. So more of that risk management is moving to the beginning, with more referencing, more affordability scrutiny, more guarantors and potentially a higher barrier to entry for tenants who do not fit neatly into conventional criteria.

He adds that it is still early days, and that the longer-term picture will take a few years to settle. Based on what his team is seeing in Leeds, the risk has not vanished. It has moved. He says his firm will keep sharing what it sees as landlords, tenants and agents adapt to the changes.

Practical Steps If You Are Renting

Whether you are an established tenant or a newcomer, the pattern he describes suggests a few ways to prepare.

Gather your paperwork early: proof of employment, payslips, bank statements and any previous landlord contact details.
Expect a third-party referencing company to contact you, and respond quickly so the process does not stall.
If you are new to the country and have no credit history, ask the agent up front what alternatives the landlord will accept.
If a guarantor is requested, ask whether a family member or friend could fill that role before you pay for a professional service.
Keep copies of everything you submit.

For landlords, the lesson he draws is to think about the tenant before the keys are handed over, since that is where the new rules have put the weight. For tenants, the takeaway is that preparation matters more than before, and that being able to pay is not always the only thing a landlord is weighing.

Willow and Hearth