Property investors purchasing new rental properties should carry out more detailed pre‑purchase checks to better protect themselves once the Renters’ Rights Act comes into force on 1 May.
Online platform Intelligent Home Information (IHI)says the reforms within the act place renewed importance on understanding potential risks associated with a property before committing to buy.
The new legislation will radically alter the private rented homes sector. It includes the abolition of ‘no‑fault’ evictions, a move to rolling tenancies, tighter rent controls and greater leniency on allowing pets. But for property investors it could mean far less flexibility to resolve problems that emerge after a property has been purchased.
Changing the balance of risk
Jane Foster, spokesperson for Intelligent Home Information, said: “The Renters’ Rights Act changes the balance of risk for landlords. If you’re buying a property to rent, it’s no longer enough to simply look only at price and yield.
“Landlords need clarity around long‑term suitability, compliance and potential restrictions before they purchase, because once a tenant is in place, resolving problems or exiting an investment may not be straightforward.”
Instead, she said that those investing in rental properties should consider everything from insights into a property’s planning history, flood and environmental risk, infrastructure schemes and local authority data to help identify issues that may affect rental use or future resale.
“House hunters, including landlords, deserve clarity and confidence before making one of life’s biggest financial decisions,” said Foster. To help, Intelligent Home Information is offering its Instant Risk Screening Reports, which normally cost £10, for free. These provide a clear summary of potential risks, alongside practical guidance on next steps.
If issues are flagged, investors can either walk away or choose to purchase more detailed, in‑depth reports, the company says, all of which can be shared with solicitors if they decide to proceed.
The free risk report is available here: Instant Property Risk Screening | Intelligent Home Information
