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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TheMaluka

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17:13 PM, 15th January 2025, About 7 days ago

Reply to the comment left by Reluctant Landlord at 15/01/2025 - 17:00
Whatever the rules, I want money in the bank in cleared funds before any contract is signed. If this becomes illegal, then heaven help all prospective tenants.

Beaver

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17:25 PM, 15th January 2025, About 7 days ago

Reply to the comment left by Peter Merrick at 15/01/2025 - 16:48
It seems to me that if that's Shelter's position on guarantors then their position would harm the prospects of a very high number of tenants if the government took their advice and would also unnecessarily put these tenants at a disadvantage. Even the CAB will advise tenants to get guarantors...and why shouldn't they?

Does anybody know if the government is still providing Shelter with funding?

Peter Merrick

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22:52 PM, 15th January 2025, About 6 days ago

Reluctant Landlord

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0:10 AM, 16th January 2025, About 6 days ago

Reply to the comment left by Peter Merrick at 15/01/2025 - 22:52
Income
Income totalled £81.33m in 2023/24. This
is £7.67m (10%) higher than the prior
year, due to a significant increase in
donations, mainly those from corporate
partners, partly offset by a reduction in
income from grants and contracts
provided by public bodies.

Reluctant Landlord

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0:13 AM, 16th January 2025, About 6 days ago

Reply to the comment left by Beaver at 15/01/2025 - 17:25
Corporate partners
Corporate partnerships are vital to helping us end the devastating impact the housing emergency is having
on people and communities. Together, we use our voices to create lasting change through fundraising,
awareness raising and campaigning.
Art Marketing FatFace Lloyds Banking Group Network Rail
B&Q/Kingfisher First Direct M&S SCS
Birmingham Midshires Freshfields Bruckhaus
Deringer Mitchells & Butlers plc Société Générale UK
British Land HSBC UK Nationwide Building
Society Wayfair
Dreams IKEA

Peter Merrick

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8:02 AM, 16th January 2025, About 6 days ago

Reply to the comment left by Reluctant Landlord at 16/01/2025 - 00:10
I didn't get time to look at all the details, but as they say, to find out what's really going on, always follow the money.

GlanACC

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8:24 AM, 16th January 2025, About 6 days ago

Thank god I am getting out of BTL when my current tenants leave. If you can't even set your own guarantor conditions and the courts system has collapsed then god help any landlord whose tenants rack up rent arrears.

Will just have to make sure anyone who would otherwise have had to have a guarantor doesn't become a tenant

Dylan Morris

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11:38 AM, 16th January 2025, About 6 days ago

So the RRB is taking away the right of a tenant to provide a guarantor. I just can’t get my head around this whatsoever. Personally I’m not affected as I’ve never taken a guarantor, always worked on the basis the tenants’ income and credit history has to stack up on it’s own. My properties are nice and in good areas and always attract quality working tenants. But I understand some landlords are operating at the cheaper end of the market and guarantors can be essential in order to give a poorly qualifying tenant a chance at acquiring a home. Sadly the only people who are going to suffer are the tenants. Nice one Shelter, Generation rent and the Starmer Junta.

Beaver

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12:11 PM, 16th January 2025, About 6 days ago

Reply to the comment left by Dylan Morris at 16/01/2025 - 11:38
I accept that as I am a small portfolio landlord my own experience will not necessarily be representative of that of the larger landlords, and the larger landlords will have more experience than I do.

However, my own experience is that the single mums with one child that I have housed have been excellent tenants and they have all been on benefits (although paying me directly). Some people get very exercised about housing tenants with pets and yes, I have also experienced extra costs and damage through doing this: However, my experience is that a family comprised of a mum who is either single or whose partner spends a long time away from home and that has *multiple* children does far more damage and creates far more additional cost than a family with pets.

The single mums with single children that I have housed have been great tenants although they have needed support from someone and often multiple sources....housing benefit, child benefit, extra support from parents, grandparents, friends or siblings. I would happily take another single mum with a guarantor if necessary and if the RRB follows the Shelter line and bans guarantors it isn't just tenants who will suffer unnecessarily, it's also their children.

One of the problems with the Renters Rights Bill is its name. It's a give-away isn't it? Renters Rights, not renters and landlords responsibilities. I think we'd all be happy with a renters and landlords bill or charter with reciprocal responsibilities that enabled us to get rid of the problem tenants and allowed us to get our properties back, but favoured good landlords providing safe accommodation for long-term tenants. I agree with Ian Narbeth that reciprocity is what we want but that is not what the proposed RRB actually is.

I had a quick look at the Shelter accounts: Shelter is described by its auditors report as follows: INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF
SHELTER, THE NATIONAL CAMPAIGN FOR HOMELESS PEOPLE LIMITED. This charity isn't campaigning for 'renters' as such. It is campaigning for homeless people. And if somebody builds its proposals into the RRB then they will indeed make a lot more people homeless.

GlanACC

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12:30 PM, 16th January 2025, About 6 days ago

I have had quite a few single mums with one or two kids, in the main they were OK.

The problems you get is when they move in a boyfriend or they can't be bothered to re-apply for Universal Credit or whatever as they think it is automatic and it stops = no rent for me.

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