Generation Rent criticises the lack of rent caps in the Renters’ Rights Bill
1 year ago | 3 comments
Landlords could see tenants moving in without paying rent
12:05 AM, 22nd January 2025, 1 year ago
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Real estate firm Knight Frank has issued a stark warning that tenants could move into properties without paying any rent once the Renters’ Rights Bill becomes law.
The government’s bill will prohibit any rent payment before a tenancy agreement is signed, with landlords facing fines for accepting such payments.
The firm’s head of lettings, Gary Hall, said: “These amendments to the Renters’ Rights Bill are bad news for landlords.
“Under the amendments, any payment of rent made before a tenancy agreement is signed will be a prohibited payment.”
Landlord could be fined
Mr Hall continued: “If a landlord invites, encourages, or accepts such a payment, the landlord or their agent could face local authority enforcement action and a fine.
“The big problem with this is often tenants want to move into a rental property quickly, sometimes in a matter of days, and transfer of funds can take three to five days, sometimes more if coming from overseas.
“Tenants will want to be able to make one payment covering rent and deposit as soon as possible to avoid multiple bank charges or the admin of making multiple payments.”
Allow rent at the start of a tenancy
He added: “The Government needs to see sense and allow rent at the start of a tenancy to be paid before a tenancy agreement is signed and before the start date of the tenancy.
“The current framework puts landlords and agents at constant risk of enforcement action for something that is out of their control.
“It is also unfair for a landlord to be at risk of a tenant moving into a property without the first month’s rent paid.”
What the government says
The government’s guide to the Bill explains the ban on advance payments:
The Renters’ Rights Bill will end the practice of landlords demanding large amounts of rent in advance from tenants looking to secure a tenancy.
This unfair practice can encourage prospective tenants to stretch their finances to the limit, preventing them from moving within, or accessing the sector altogether.
Once enacted, the Renters’ Rights Bill will amend the Tenant Fees Act 2019 to prohibit landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into.
A landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) once a tenancy agreement has been signed and before commencement.
The Renters’ Rights Bill will also amend the Housing Act 1988 to provide that, once a tenancy starts, a landlord will be unable to enforce any terms in a tenancy agreement that require rent to be paid in advance of the agreed due date.
This measure will protect prospective tenants from large requests for rent in advance that are beyond their means.
Tags:
housing crisis, Knight Frank, Landlord Tenant Rent Payments, Landlords, Prohibited Rent Advance Payments, Property market, propertymark, Protecting Tenants Financially, rent in advance, renters rights bill, Renters Rights Bill impact, Tenant Fees Act 2019 Amendments, tenants, UK, UK Housing Legislation Changes
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Member Since April 2017 - Comments: 163 - Articles: 1
9:48 AM, 22nd January 2025, About 1 year ago
The war on Tenants and Landlords continues with very negative outcomes for both
Member Since November 2023 - Comments: 20
10:00 AM, 22nd January 2025, About 1 year ago
Reply to the comment left by Mark Chamberlain at 22/01/2025 – 09:36
Why do you need regulation for something that every LL should do as a matter of routine
No money = no keys
Member Since May 2015 - Comments: 2188 - Articles: 2
10:00 AM, 22nd January 2025, About 1 year ago
Reply to the comment left by Mark Chamberlain at 22/01/2025 – 09:36
Once a tenancy is in place, denying access is a criminal offence.
Member Since May 2015 - Comments: 2188 - Articles: 2
10:07 AM, 22nd January 2025, About 1 year ago
The solution is to become a tenant. Sign the tenancy agreement and then tell your new landlord that you are never going to pay any rent. This ensures that you have at least five months hassle-free accommodation free of charge (three months arrears, then two months notice). If you are really canny, sting the landlord for two months rent payment towards your moving costs when you eventually leave.
Member Since March 2015 - Comments: 120
10:11 AM, 22nd January 2025, About 1 year ago
Reply to the comment left by DPT at 22/01/2025 – 04:53
And once cash is being accepted everyone in the sector will be accused of money laundering!
Member Since March 2015 - Comments: 120
10:15 AM, 22nd January 2025, About 1 year ago
Reply to the comment left by Jo Westlake at 22/01/2025 – 01:47
I always ask that rent in advance is received in cleared funds and the signing and dating of the tenancy agreement is what makes it binding, therefore solely signing the agreement is not entering into an agreement.
I also understand that tenants can pay it in advance if they choose
Member Since March 2015 - Comments: 120
10:16 AM, 22nd January 2025, About 1 year ago
Reply to the comment left by TheMaluka at 22/01/2025 – 10:00
But is the agreement binding if it is not dated and no money has been received?
Until such time the tenancy has not started – no money, no keys
Member Since August 2021 - Comments: 39
10:24 AM, 22nd January 2025, About 1 year ago
I am afraid you miss the point all this legislation is based on two things, the first is the malevolent hatred of far left politicians and the various gangs/charities
The second is the size of the incentives that may have been arranged with those complicit in destroying the PRS and handing over a total monopoly to a few multi billion dollar institutions
Member Since December 2023 - Comments: 1575
10:31 AM, 22nd January 2025, About 1 year ago
The current version of the Bill clearly states that the initial rent can be taken in advance.
Member Since June 2014 - Comments: 1562
10:36 AM, 22nd January 2025, About 1 year ago
Reply to the comment left by TheMaluka at 22/01/2025 – 10:00
“Once a tenancy is in place, denying access is a criminal offence.”
For a tenancy to be in place I believe a “consideration” (i.e rent) has to be paid?