0:05 AM, 24th January 2025, About 2 hours ago
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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.”
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.
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.
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.”
