Student landlords will be hit by the government's ban on advance rent payments

Steve Lumley·21 January 2025·5 min read
Student landlords will be hit by the government's ban on advance rent payments

The National Residential Landlords Association (NRLA) is among those condemning the government's decision to prohibit landlords from requesting rent in advance.

An amendment to the Renters' Rights Bill will restrict landlords to a single month's rent upfront, along with a deposit capped at six weeks' rent.

The NRLA warns that this measure will disproportionately affect student landlords, particularly those renting to international students.

The Bill is set to return to Parliament next week and could be law by the summer.

Cap on upfront rent payments

Deputy Prime Minister and housing secretary, Angela Rayner, has defended the cap on upfront rent payments.

The i-newspaper reports her saying: "We're putting an end to renters being ripped off by outrageous upfront costs that leave them struggling to make ends meet or locked out of housing altogether.

"Our Renters' Rights Bill will transform the rights of 11 million private tenants, ending rental bidding wars and abolishing 'no fault' eviction, making the system fairer and giving renters more security, stability and protections."

Ban will exacerbate housing difficulties

The NRLA has criticised the government’s proposal, arguing it will exacerbate housing difficulties for vulnerable tenants.

Chris Norris, the NRLA's policy director, said: "Restricting rent in advance, combined with freezing housing benefit rates and not enough rental housing to meet demand is creating significant barriers for those with poor or no credit histories needing to access the sector.

"This includes international students and those employed on a short-term or variable basis with an income that fluctuates."

He adds: "The Government is cutting off any assurance responsible landlords might seek when renting to those who cannot easily prove their ability to sustain tenancies and pay their rents.

"In the end those who will suffer most are those the Government most wants to help."

Ability to afford and sustain tenancies

He went on to say: "Ministers must provide clarity on how tenants unable to easily demonstrate their ability to afford and sustain their tenancies should do so.

"Expecting landlords to take on high levels of risk without practical assurances is not a sustainable solution and risks further exacerbating the challenges in an already constrained market."

Timothy Douglas, Propertymark's head of policy and campaigns, echoed these concerns, stating that the government needs to understand the consequences of limiting rent in advance payments.

He said: "Whilst the UK government want to transform the experience of private renting, by banning the taking of rent in advance they are potentially reducing options for tenants to access private rented property.

"There are a wide range of circumstances and scenarios that impact how people pay their rent, for instance some renters are on fixed incomes, not all tenants pass referencing and affordability checks, and some have insecure incomes due to their work arrangements."

Mr Douglas added: "The UK government must do more to understand why rent in advance is used by both landlords and tenants and avoid one size fits all policies that mean some tenants may no longer be able to access private rented property."

'Blow to lots of student landlords'

Simon Thompson, the managing director of Accommodation for Students, said: "This amendment to the Renters' Rights Bill is a real blow to lots of student landlords.

"It completely ignores the realities of renting to young people, especially those from overseas.

"Many international students pay rent upfront to secure their accommodation before even arriving in the country.

"This ban will create unnecessary hurdles for them and could even deter some from studying here."

He added: "The government needs to understand that this policy could have unintended consequences.

"It could lead to fewer rental properties available to students, higher rents for those who can find accommodation, and ultimately, a less welcoming environment for international students."