Renters’ Rights Bill could lock out vulnerable tenants from the PRS

The controversial Renters’ Rights Bill may inadvertently exclude some of the rented sector’s most vulnerable tenants, one firm reveals.

According to Leaders Romans Group (LRG), the Bill’s restriction on limiting advance rent payments to one month could hinder access to housing for vulnerable groups of people.

These include overseas applicants, self-employed people and those lacking a UK credit history.

LRG’s Q1 2025 Lettings Report reveals that 57% of tenants struggle to secure a rental property, with 21% citing the challenge of providing several months’ rent upfront.

Paying rent upfront, LRG says, is a common tactic to boost an application when standard references are insufficient.

Fairness when applying

The firm’s national lettings managing director, Allison Thompson, said: “The intention to make renting fairer is positive, but fairness must start at the application stage.

“Our data shows that many tenants rely on rent in advance as a practical, proven solution.

“Four in 10 landlords are open to this where it helps a reliable applicant secure a home.”

She added: “Capping advance rent could have the opposite effect to what’s intended, making the system less fair for those who already face barriers.

“We urge Parliament to protect the option for landlords and tenants to agree a higher up-front payment where it’s the only route to securing a home.

“Negotiated advance payments, used with safeguards, are a bridge into housing, not a loophole.”

Renting with no credit history

LRG says that other obstacles include having no UK credit history (11%) and irregular or self-employed income (10%).

The report underscores the importance of advance rent payments, noting that 41% of landlords are willing to accept low-income tenants who offer additional upfront payments, compared to just 6% without this option.

The National Residential Landlords Association (NRLA) supports these findings, reporting that 91% of landlords currently request no more than one month’s rent in advance.

Just 8% of landlords want more in cases of weak references or limited credit history.

Both the NRLA and Propertymark have raised concerns that eliminating the ability to negotiate advance payments could exacerbate difficulties for tenants with poor credit or fluctuating incomes.

International tenants, particularly overseas students, face significant risks, they warn.

Many of those from overseas rely on paying multiple months of rent upfront to meet referencing requirements, as they often cannot provide a UK guarantor.

Without this flexibility, LRG fears they may be pushed towards costlier, less suitable housing options.