0:05 AM, 22nd January 2025, About A year ago 67
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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.”
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.”
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.”
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.
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moneymanager
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Member Since February 2018 - Comments: 627
16:54 PM, 22nd January 2025, About A year ago
Reply to the comment left by TheMaluka at 22/01/2025 – 16:24
Indeed they are.
What we need is a topic wide paradigm shift, if anything makes no sense, if anything is absurd or exaggerated, it is, just start to learn that we are at war, have been lied to for decades if not much longer, and can expect no change of direction from ‘the top’, it’s up to us to make change happen.
Seething Landlord
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Member Since January 2020 - Comments: 1101 - Articles: 1
17:37 PM, 22nd January 2025, About A year ago
Reply to the comment left by Cider Drinker at 22/01/2025 – 13:56
Read the Bill, section 10
NewYorkie
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Member Since October 2013 - Comments: 1591 - Articles: 3
17:45 PM, 22nd January 2025, About A year ago
Reply to the comment left by moneymanager at 22/01/2025 – 16:54
That change is already happening, through thousands fewer private landlords and far fewer properties, higher rents, tougher referencing, even higher homelessness.
The worrying thing is they will suddenly announce a housing emergency [it’s already there!]… we didn’t see this coming…
BobbyBisto
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Member Since March 2023 - Comments: 24
20:55 PM, 22nd January 2025, About A year ago
Reply to the comment left by Jo Westlake at 22/01/2025 – 01:47
Your comments make complete sense to me
So probably will be changed
BobbyBisto
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Member Since March 2023 - Comments: 24
20:58 PM, 22nd January 2025, About A year ago
Reply to the comment left by DPT at 22/01/2025 – 04:53
Who is on the Landlords sides as it is turning into a them and us 🙁
Andrew Holmes
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Member Since May 2015 - Comments: 51
10:01 AM, 23rd January 2025, About A year ago
Reply to the comment left by Guy Malone at 22/01/2025 – 08:22Not sure how comparing the construction buisness to house rentals is relevant.
Just curious, when you buy your groceries do you walk out without paying, go home and put them away and then return to the shop a few days later.
If you book a holiday do you pay for the holiday when you get back.
Go to the pub and eat and drink for free and then return to pay.
You buy groceries on line you pay before delivered, a holiday before you go and even some restaurants take a deposit before you eat.
Should be no different for a tenant and landlord arrangement.
Belsh
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Member Since January 2020 - Comments: 9
12:27 PM, 23rd January 2025, About A year ago
Reply to the comment left by Guy Malone at 22/01/2025 – 08:22
Would you supply services to a company you don’t know and also in the knowledge that if they don’t pay you then you’ll have to keep supplying the services month after month until a court order says you don’t have to?
Crossed_Swords
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Member Since April 2021 - Comments: 189
21:28 PM, 23rd January 2025, About A year ago
Since these can all be done simultaneously, what is the problem. No tenancy signed and no money in the bank = no keys. Simples. Doesn’t need to be in advance except by a few minutes.
Slooky
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Member Since April 2023 - Comments: 157
8:35 AM, 25th January 2025, About A year ago
Reply to the comment left by Mark Chamberlain at 22/01/2025 – 09:36
Agreed, because it says “before commencement.”
Geoff1975
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Member Since September 2020 - Comments: 16
8:49 AM, 25th January 2025, About A year ago
I’ve always taken rent and deposit a couple of days in advance of the tenancy starting as then I could get all the paperwork ready for signing together on the day. If you can still take the deposit payment in advance then they can do a bank transfer at the point of signing. The deposits needed to be paid in advance so you could protect it and get the tenant to sign receipt of the DPS certificate on the day they got the keys. If you had to go away and come back there was a chance they would refuse to sign the DPS certificate and then s21 could never be used.