Landlords are set to face a new restriction as Labour introduces further regulations to its forthcoming renter law. Under these new rules, landlords will be prohibited from requesting multiple months’ rent in advance.
The Renters’ Rights Bill, set to be voted on later this year, will introduce a new cap on advance payments in the private rental sector in Britain. Under the proposed legislation, tenants will only be required to pay up to one month’s rent in advance. This is part of the government’s ongoing efforts to bring about changes in the rental market.
Under the current regulations, private landlords have the authority to demand a substantial sum of money as upfront rent payments, which has raised concerns about potential financial strain on tenants. The proposed legislation, however, will permit landlords to request one month’s rent in advance, along with a deposit amounting to a maximum of six weeks’ rent.
The bill was amended by housing secretary Angela Rayner, with the intention of putting an end to renters being taken advantage of through exorbitant upfront costs. Rayner emphasized the detrimental effects of these costs, noting that they often leave renters in financial hardship or prevent them from accessing suitable housing.
“Our Renters’ Rights Bill aims to revolutionize the rights of 11 million private tenants. It will put an end to rental bidding wars and eliminate ‘no fault’ eviction, resulting in a fairer system that provides renters with increased security, stability, and protections.”
Landlords have expressed their dissatisfaction with the changes, stating that the policy will limit their ability to verify the reliability and financial capability of potential tenants.
Chris Norris, policy director for the National Residential Landlords Association, believes that the government’s amendment is detrimental to responsible landlords. He argues that by cutting off the assurance that these landlords might seek when renting to tenants who cannot easily prove their ability to sustain tenancies and pay their rents, the government is ultimately harming those it intends to help the most.
Ministers need to offer clear guidance on how tenants who are unable to easily prove their financial stability and ability to maintain their tenancies can go about doing so.
Renters’ rights groups have welcomed the change wholeheartedly. According to Tom Darling, the director of the Renters’ Reform Coalition, the demands for exorbitant rent in advance have unfairly enabled landlords to discriminate against tenants with lower incomes.
“The government’s proactive response and willingness to listen to renter groups is commendable as they have clearly outlined their intention to prohibit this practice.”
The government’s Renters’ Rights Bill, currently in the committee stage, is anticipated to be passed later this year. This bill will introduce significant changes, which will include the abolishment of the controversial ‘no-fault’ Section 21 eviction notices.
