Renters’ Rights Bill comes back to Parliament – start the clock!
1 year ago | 12 comments
Landlord organisation raises alarm over Renters’ Rights Bill amendments
12:05 AM, 13th January 2025, 1 year ago
63
With the Renters’ Rights Bill returning to Parliament this week, a landlord organisation is warning of unintended consequences the Bill will bring to the private rented sector.
ihowz say they are concerned over several amendments in the Bill including restrictions on when landlords can request a guarantor and limits on advance rent payments.
The Bill will enter the report stage on Tuesday, allowing MPs to propose amendments, which the Speaker will select on the same day.
Guarantors offer crucial financial protections
The amendments outline various scenarios where a tenant would not need to provide a guarantor.
For example, tenants who have paid a tenancy deposit or have been assisted through a deposit scheme, and are required to pay rent in advance for one month, would not be required to provide a guarantor.
However, the amendments state that tenants must provide a reasonable assessment of their financial means, demonstrating that their income (including state benefits and any other lawful sources of income) is sufficient to cover the full rent due under the tenancy.
If a guarantor is required, their liability will be capped at six months’ rent.
iHowz says they oppose the Bill’s amendments on guarantors and deposits.
Peter Littlewood, chief executive of ihowz said: “Guarantors offer crucial financial protections for tenants and landlords, especially when dealing with tenants who may face financial difficulties, have poor credit, or lack stable employment.
“Larger deposits or guarantors provide reassurance for tenants with variable incomes or limited rental history, such as students or international renters.”
Student renters prefer to look for housing early
Other amendments in the Bill include preventing student tenants from signing leases before March 1st of the year their tenancy begins.
The amendment says it aims to reduce pressure on students to commit to housing too early. However, iHowz argues that many students start looking for accommodation well in advance.
iHowz says: “Most students prefer to finalise their housing plans in advance of the end of the Spring Term, before Easter holidays and summer examinations.
“Signing tenants early also allows landlords time to plan and carry out any required maintenance, upgrades, or compliance checks (e.g., gas safety) before the new tenancy begins.”
Other amendments include limiting landlords to requesting only one month’s rent upfront and providing full funding for home adaptations through Disabled Facilities Grants.
Tags:
advance rent payments, deposit schemes, financial protections, guarantor restrictions, IHowz, Landlord Concerns, Private Rented Sector, renters rights bill, Renters Rights Bill Amendments, Tenancy deposit, tenant guarantor
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Member Since May 2014 - Comments: 617
6:15 PM, 13th January 2025, About 1 year ago
Reply to the comment left by Peter Merrick at 13/01/2025 – 10:50
George and his chums knew exactly what they were doing.
They did not give a fig about tenants or first time buyers.
IMHO they were all looking after the corporates otherwise it would be at least a more even playing field.
Member Since September 2018 - Comments: 3511 - Articles: 5
8:52 PM, 13th January 2025, About 1 year ago
Reply to the comment left by Peter Merrick at 13/01/2025 – 09:47
‘professionalising’ the sector is one thing – but if it means results in reducing the ability for applicants to even secure a tenancy….this is only going to backfire BIG TIME disproportionately on tenants.
Maybe this should be renamed as the Renters Ability to Rent Limitation Bill?
Member Since September 2018 - Comments: 3511 - Articles: 5
9:14 PM, 13th January 2025, About 1 year ago
All this is going to make for some very interesting property marketing!
We welcome all applications including benefit recipients….but ….
The offer of a tenancy can only be made when full affordability is determined and positive credit history, renting history and all financial compliance checks have been completed and confirmed for all prospective tenants.
Please note – The use of a guarantor may also be required, as a condition of rent guarantee insurance. If a guarantor is necessary then it must be a UK based national with personal property ownership (again in the UK) in their personal name…..
The list goes on…. so yes benefit tenants will all inevitably be excluded on the basis of affordability and on not being able to meet the referencing criteria.
Member Since May 2022 - Comments: 108
8:49 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Patricia at 13/01/2025 – 10:08
Totally agree with you. Who (the government) think they are kidding, Mr Hitler?
Member Since September 2015 - Comments: 1013
8:59 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Reluctant Landlord at 13/01/2025 – 21:14
The Government is considering banning the use of guarantors.
Member Since May 2018 - Comments: 1999
9:55 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Gromit at 14/01/2025 – 08:59
Why would they have any concerns about the use of guarantors?
Member Since September 2015 - Comments: 1013
10:00 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Beaver at 14/01/2025 – 09:55
You’re making the mistake that the Government is being reasonable.
I suspect Shelter, Generation Rent or one of the other faux tenant support groups raised an objection to it.
Member Since May 2018 - Comments: 1999
10:03 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Gromit at 14/01/2025 – 10:00
OK that might be the case…but why would even Shelter, Generation Rent or one of the other faux tenant support groups have any objection to the use of guarantors?
Member Since July 2013 - Comments: 1996 - Articles: 21
10:05 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Beaver at 14/01/2025 – 09:55Because they have realised that if you ban “no reason” evictions, extend to 3 months the time before rent arrears enable a landlord to commence eviction proceedings and believe that fairness means being 100% in favour of tenants, landlords will be more choosy about whom they will accept.
Impecunious and badly behaved tenants (who are more likely to vote Labour than for other parties) will find themselves homeless. Requiring a guarantor for such people encourages them to (a) pay the rent on time and (b) if not look after a property, at least not deliberately damage it because their guarantor will be held liable.
Banning landlords from taking guarantors won’t help tenants. It will just mean fewer properties available to rent, more rent guarantee insurance required and, in consequence, higher rents.
At the end of the day the tenant pays for everything.
Member Since May 2018 - Comments: 1999
11:31 AM, 14th January 2025, About 1 year ago
Reply to the comment left by Ian Narbeth at 14/01/2025 – 10:05
I agree that banning landlords from taking guarantors won’t help tenants; even the Citizen’s Advice Bureau will occasionally advise a tenant to seek a guarantor.
I’m still struggling to see why any organisation pretending to help tenants would have any real objection to guarantors.