0:02 AM, 9th January 2025, About 2 weeks ago 12
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The National Residential Landlords Association (NRLA) has slammed the government’s decision to ban landlords from demanding rent in advance.
Under an amendment to the Renters’ Rights Bill, landlords will only be allowed to request one month’s rent upfront, along with a deposit of up to six weeks’ rent.
The news comes ahead of the Bill’s return to Parliament next week.
Deputy Prime Minister and Secretary of State for Housing Angela Rayner says upfront rent payments will be capped.
She told the i newspaper: “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.”
However, the NRLA has criticised the government’s proposal arguing it will make it even harder for vulnerable tenants to find a home.
Chris Norris, NRLA policy director, says renters who have poor credit history often offer advance rent to mitigate the risk to landlords who may otherwise be concerned they wouldn’t be able to maintain the tenancy.
Mr Norris adds the proposal will impact foreign students who often pay their rent in advance ahead of coming into the country.
He 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.
“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.”
Mr Norris adds: “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.”
“In the end, those who will suffer most are those the government most wants to help.”
Timothy Douglas, head of policy and campaigns at Propertymark says 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.
“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.”
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Peter Merrick
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Sign Up8:16 AM, 11th January 2025, About 2 weeks ago
Reply to the comment left by Freda Blogs at 09/01/2025 - 12:33
When I was at university (admittedly in the late 80s), I was billed termly for accommodation, presumably in line with maintenance grants that some people had access to at the time, now replaced by loans paid in termly installments.
So presumably if there are any universities still doing this then it will also be illegal in future. This would then make arrears much more likely as some will inevitably struggle with the budgeting required to sustain monthly payments out of termly income.
Alison Clark
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Sign Up10:11 AM, 11th January 2025, About 2 weeks ago
Reply to the comment left by Freda Blogs at 09/01/2025 - 12:33
Hi Freda. This is the exact arrangement my son and his student friends have. This was how the landlord set up the rent payment, aligned with their maintenance loan it seems to work well. They have been in the same house for 2 years in Nottingham.