Lettings body warns against Renters’ Rights Bill clauses

Lettings body warns against Renters’ Rights Bill clauses

0:05 AM, 24th January 2025, About 4 weeks ago 7

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Letting body safeagent is urging the government to withdraw two new clauses from the Renters’ Rights Bill, warning they could restrict access to the private rented sector for vulnerable tenants.

In a letter to Housing Minister Matthew Pennycook, the organisation expressed concern that Clauses 13 and 14 would disproportionately impact those with poor credit histories, no UK guarantors and those relying on local authority support.

Isobel Thomson, the chief executive of safeagent, said: “These clauses will severely restrict access to the private rented sector for less well-off prospective tenants.

“This includes those who may have no credit history or a poor one.

“The clauses will also negatively impact on those who cannot provide a UK guarantor, including overseas students and other foreign nationals.”

Multiple months of rent upfront

Under the Bill, clause 13 prohibits the payment of multiple months of rent upfront, while clause 14 prevents landlords from requesting the first month’s rent before a tenancy agreement is signed.

Ms Thomson writes: “Payment of several months of rent upfront is a legitimate solution to these difficulties.

“New clause 14 will undermine landlords’ ability to limit risk, by preventing them from requesting the first month’s rent prior to entering into the tenancy agreement.

“Once again, this takes away a legitimate option for tenants with no (or a poor) credit history, who nonetheless need to access the private rented sector.

End of fixed term tenancy agreements

Ms Thomson continues: “An important piece of context to this is the proposed end of fixed term tenancy agreements.

“When this comes into force, there are likely to be fewer people prepared to act as rent guarantors, as guarantees will have to last for an indefinite period.

“Payment of multiple months of rent upfront should, therefore, remain as a legitimate option for the potentially increasing numbers of prospective tenants who cannot find a guarantor.”

She adds: “Payment of multiple months of rent upfront can also be a legitimate option for low-income tenants, including those claiming benefits.

“This includes people who are being helped by Local Authority schemes which incentivise landlords to make properties available to homeless people or those at risk of homelessness.

“For example, an assured shorthold tenancies scheme in Bristol offers landlords up to six month’s rent in advance.”

She says it is important that local authority incentive schemes continue to have the option of paying rent in advance.

Groups will be negatively impacted

The letter also highlights that other groups that will be negatively impacted by the clauses include those on variable incomes and the self-employed.

Ms Thomson explains: “These groups can face challenges when trying to pass referencing and affordability checks.

“Paying a larger proportion of rent at the start of a tenancy gives these prospective tenants an alternative way of evidencing their ability to sustain a tenancy, thus giving landlords confidence in renting.

“It will be important to ensure that payment of multiple months of rent upfront remains an option for prospective tenants.”


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Cider Drinker

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5:33 AM, 24th January 2025, About 4 weeks ago

I don’t expect these novices in government to understand the unintended consequences if their actions. That’s if the consequences are unintended, which I doubt.

Most MPs have never had a proper job. Many are easily swayed by lobbyists offering free lunches, free clothes and free money.

Cider Drinker

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6:08 AM, 24th January 2025, About 4 weeks ago

?ℎ?? ?ℎ?? ????? ???? ?????, ?ℎ??? ??? ?????? ?? ?? ????? ?????? ???????? ?? ??? ?? ???? ??????????, ?? ?????????? ???? ℎ??? ?? ???? ??? ?? ?????????? ??????.

My understanding is that guarantees already last for the full term of the tenancy.

Reluctant Landlord

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9:44 AM, 24th January 2025, About 3 weeks ago

“This includes people who are being helped by Local Authority schemes which incentivise landlords to make properties available to homeless people or those at risk of homelessness.

“For example, an assured shorthold tenancies scheme in Bristol offers landlords up to six month’s rent in advance.”

Exactly! Will the LA's become unlimited guarantors instead to get round this? If not then there is no way that any LL is going to be taking anyone off the council list as now the risk is further increased...
BONKERS!

Ian Narbeth

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12:55 PM, 24th January 2025, About 3 weeks ago

Many landlords and tenants agree that rent should be paid on a specific day, such as the first of the month. This is sensible as most monthly paid employees receive their salary at the end of the month. If a tenancy starts during the last few days of a month it is common (and reasonable from a landlord's perspective) to ask for pro rata rent up to the last day of the month plus a month's rent in advance.
This clause will outlaw that and landlords risk a fine of up to £5000 if they take such a payment. This is so even if the tenant volunteers it. This is madness and will just lead to landlords saying they cannot be bothered to risk letting their property.

The alternative of moving the payment date to the day of the month that the tenancy starts is for many administratively inconvenient.

TheMaluka

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13:15 PM, 24th January 2025, About 3 weeks ago

Reply to the comment left by Ian Narbeth at 24/01/2025 - 12:55
I have been taking a partial month payment plus a full month from the first of the following month for many years. This has worked well for both landlord and tenant. If the new bill restricts such sensible measures, I will only take tenancies from the first of the month. This combined with the two months notice, coinciding with rental periods, will put tenants at a severe disadvantage as currently I accept any 28-day period.

Rob Crawford

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10:47 AM, 25th January 2025, About 3 weeks ago

I always get tenancy agreements signed in advance of the tenancy start date. The agreement currently includes a clause that states access is only permitted once the the agreement is signed and the first month's rent has been received. My interpretation is that this would still be valid means to ensure payment is received before keys are handed over.

Rob Crawford

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12:29 PM, 25th January 2025, About 3 weeks ago

The student sector and sectors that rely on foreign tenants will suffer. I don't see a way forward for them other than upgrading properties to a standard acceptable to professional tenants.

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