Landlord organisation raises alarm over Renters’ Rights Bill amendments

With the Renters’ Rights Bill returning to Parliament this week, a landlord organisation is warning of unintended consequences the Bill will bring to the private rented sector.

ihowz say they are concerned over several amendments in the Bill including restrictions on when landlords can request a guarantor and limits on advance rent payments.

The Bill will enter the report stage on Tuesday, allowing MPs to propose amendments, which the Speaker will select on the same day.

Guarantors offer crucial financial protections

The amendments outline various scenarios where a tenant would not need to provide a guarantor.

For example, tenants who have paid a tenancy deposit or have been assisted through a deposit scheme, and are required to pay rent in advance for one month, would not be required to provide a guarantor.

However, the amendments state that tenants must provide a reasonable assessment of their financial means, demonstrating that their income (including state benefits and any other lawful sources of income) is sufficient to cover the full rent due under the tenancy.

If a guarantor is required, their liability will be capped at six months’ rent.

iHowz says they oppose the Bill’s amendments on guarantors and deposits.

Peter Littlewood, chief executive of ihowz said: “Guarantors offer crucial financial protections for tenants and landlords, especially when dealing with tenants who may face financial difficulties, have poor credit, or lack stable employment.

“Larger deposits or guarantors provide reassurance for tenants with variable incomes or limited rental history, such as students or international renters.”

Student renters prefer to look for housing early

Other amendments in the Bill include preventing student tenants from signing leases before March 1st of the year their tenancy begins.

The amendment says it aims to reduce pressure on students to commit to housing too early. However, iHowz argues that many students start looking for accommodation well in advance.

iHowz says: “Most students prefer to finalise their housing plans in advance of the end of the Spring Term, before Easter holidays and summer examinations.

“Signing tenants early also allows landlords time to plan and carry out any required maintenance, upgrades, or compliance checks (e.g., gas safety) before the new tenancy begins.”

Other amendments include limiting landlords to requesting only one month’s rent upfront and providing full funding for home adaptations through Disabled Facilities Grants.

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