Landlord organisation raises alarm over Renters’ Rights Bill amendments

Landlord organisation raises alarm over Renters’ Rights Bill amendments

0:05 AM, 13th January 2025, About A week ago 63

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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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Geoff1975

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9:22 AM, 13th January 2025, About A week ago

We already refuse any applicants who require a guarantor. They get removed at the initial paper sift. This will simply make it harder for those tenants to get a tenancy.

Peter Merrick

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9:47 AM, 13th January 2025, About A week ago

So even stricter referencing and rent guarantee insurance, paid for by higher rents, will soon become the norm. This is presumably what they meant by "professionalising" the sector?

Julian Lloyd

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9:55 AM, 13th January 2025, About A week ago

If students are not allowed to sign up for their new place until March, I can’t imagine how crazy and unmanageable that market would become!
That combined with no guarantor for students and foreign students not being allowed to pay six months in advance will make that market far too risky.

Cider Drinker

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10:07 AM, 13th January 2025, About A week ago

There are simply not enough homes for everybody to have one.

Thanks to government action, private landlords choose the best tenants available for their homes. This reduces the risk of non payment but doesn’t remove the risk completely. Those tenants that don’t make the grade are left to fight over the pitiful supply of social housing. The remainder, often the most desperate in Society are condemned to a life in emergency or temporary housing. Time for trailer parks.

Patricia

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10:08 AM, 13th January 2025, About A week ago

I cannot help but think now that the real reason behind all of this has nothing whatsoever to do with 'renter's rights' but more to do with destroying the private rental sector and pushing it all into the arms of the corporate Build to Rent sector.

Stella

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10:31 AM, 13th January 2025, About A week ago

Reply to the comment left by Patricia at 13/01/2025 - 10:08
I agree the real agenda is to strangle the private rented sector.
George Osborne started the process with section 24.
He then went on to work for Blackrock who are spending millions on BTR. in the UK

Yvonne Francis

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10:45 AM, 13th January 2025, About A week ago

Reply to the comment left by Julian Lloyd at 13/01/2025 - 09:55It is not mentioned here Julian but the worse thing for students lets will be banning of AST's. despite the allowance made to be able to give notice in line with the academic year

Ian Narbeth

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10:45 AM, 13th January 2025, About A week ago

Reply to the comment left by Patricia at 13/01/2025 - 10:08
Patricia, the "corporate Build to Rent sector" are private landlords as opposed to councils or social landlords. New built to rent properties are more expensive to rent than existing stock.

Whatever, else Labour is doing, it is not deliberately seeking to raise rents for tenants. Its policies will do so and an (undesired though foreseeable) outcome of the Renters Rights Bill will be a reduction in supply and an increase in rents.;

Peter Merrick

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10:50 AM, 13th January 2025, About A week ago

Reply to the comment left by Stella at 13/01/2025 - 10:31
As I recall at the time, George and his chums were fairly upfront about their aim to stymie the PRS, as certain tenant organisations were complaining about landlords forcing people to rent by hoovering up all the available inventory and pricing out first time buyers. And that the demand would be better met by investment in BTR projects, presumably because they would not be competing with FTBs.

Of course, neither aspect of this wishful thinking actually happened as intended. The investment in BTR has been nowhere near enough to meet demand, and landlords have done their best to adapt as far as they can by raising rents and being more careful about who they rent to in order to protect their way of life. BTR providers are also busy buying up existing inventory in some cases in preference to investing in new property.

Freda Blogs

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11:11 AM, 13th January 2025, About A week ago

I cannot conceive how the numpties in Govt can be so naive as to think PRS LLs are willing or able to pass over a property worth hundreds of £000s to tenants with seemingly minimal financial safeguards, risk not getting paid rent and risk yet more money attempting to recover possession when required.

This will not happen in every case, but when it does, it can be financially and emotionally devastating for that LL.

PRS will no longer constitute a good investment when similar returns can be obtained by alternative hands - off investments. Little wonder that LLs are selling up.

Heaven help us if this measure of stupidity is indicative of Govt’s ability to resolve a problem - of their own making - or fix perceived / non existent issues in a sector which broadly speaking has operated perfectly well for years without such interference.

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