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.”
