0:02 AM, 9th January 2025, About 14 hours ago 5
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The National Residential Landlords Association (NRLA) has slammed the government’s decision to ban landlords from demanding rent in advance.
Under an amendment to the Renters’ Rights Bill, landlords will only be allowed to request one month’s rent upfront, along with a deposit of up to six weeks’ rent.
The news comes ahead of the Bill’s return to Parliament next week.
Deputy Prime Minister and Secretary of State for Housing Angela Rayner says upfront rent payments will be capped.
She told the i newspaper: “We’re putting an end to renters being ripped off by outrageous upfront costs that leave them struggling to make ends meet or locked out of housing altogether.
“Our Renters’ Rights Bill will transform the rights of 11 million private tenants, ending rental bidding wars and abolishing ‘no fault’ eviction, making the system fairer and giving renters more security, stability and protections.”
However, the NRLA has criticised the government’s proposal arguing it will make it even harder for vulnerable tenants to find a home.
Chris Norris, NRLA policy director, says renters who have poor credit history often offer advance rent to mitigate the risk to landlords who may otherwise be concerned they wouldn’t be able to maintain the tenancy.
Mr Norris adds the proposal will impact foreign students who often pay their rent in advance ahead of coming into the country.
He said: “Restricting rent in advance, combined with freezing housing benefit rates and not enough rental housing to meet demand is creating significant barriers for those with poor or no credit histories needing to access the sector.
“This includes international students and those employed on a short-term or variable basis with an income that fluctuates.
“The government is cutting off any assurance responsible landlords might seek when renting to those who cannot easily prove their ability to sustain tenancies and pay their rents.”
Mr Norris adds: “Ministers must provide clarity on how tenants unable to easily demonstrate their ability to afford and sustain their tenancies should do so.
“Expecting landlords to take on high levels of risk without practical assurances is not a sustainable solution and risks further exacerbating the challenges in an already constrained market.”
“In the end, those who will suffer most are those the government most wants to help.”
Timothy Douglas, head of policy and campaigns at Propertymark says the government needs to understand the consequences of limiting rent in advance payments.
He said: “Whilst the UK government want to transform the experience of private renting, by banning the taking of rent in advance they are potentially reducing options for tenants to access private rented property.
“There are a wide range of circumstances and scenarios that impact how people pay their rent, for instance, some renters are on fixed incomes, not all tenants pass referencing and affordability checks, and some have insecure incomes due to their work arrangements.
“The UK government must do more to understand why rent in advance is used by both landlords and tenants and avoid one size fits all policies that mean some tenants may no longer be able to access private rented property.”
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Reluctant Landlord
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Sign Up9:55 AM, 9th January 2025, About 5 hours ago
While a LL cannot 'demand' rent in advance, I assume the tenant can still offer it of their own free will and sign something to that effect?
So if every good LL sticks to the letter of the law and refuses to accept rent over 1 month in advance, then perfectly viable tenants (only with a lack of credit history/coming (legally) to the UK for work etc) will be by default left homeless or left to rent from 'rogue' landlords then?
Jeez, how thick are these idiots?
Martin Thomas
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Sign Up9:57 AM, 9th January 2025, About 4 hours ago
This government and its left wing civil servants are just too dim to understand that "one size fits all" simply won't work because there are circumstances such as foreign students, where rent up front is entirely appropriate.
Jo Westlake
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Sign Up10:17 AM, 9th January 2025, About 4 hours ago
I hate to suggest another layer of complication but would a solution be for the money to be held by a third party, such as one of the deposit schemes and paid to the landlord each month?
International students are going to be especially badly impacted by not being able to pay rent termly or annually. Partly because of exchange rate fluctuations and costs if the money is being transferred from their home country and partly because of effectively being denied the opportunity to rent much cheaper PRS student housing instead of the far more expensive student halls. It could easily cost an extra £2000+ per international student per year.
I very rarely ask for lump sum rent apart from international students but occasionally get requests from people who get their money from Trust Funds. Apparently the fees make monthly payments unviable.
Reluctant Landlord
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Sign Up10:24 AM, 9th January 2025, About 4 hours ago
Going a bit off topic (but still relevant), has anyone actually been through the process of trying to find out from the courts if a possession notice was served on a tenant applicant?
Found and interesting bit of info...."
In the UK, eviction notices are considered public records and can be accessed by anyone who knows where to look. You can visit the website of the Ministry of Justice which provides access to certain types of public records including possession claims and warrant for possession orders. "
Anyone gone through this process at all? The claim above means nothing as the MoJ site simply sends you to the civil proceedings legislation...
Freda Blogs
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Sign Up12:33 PM, 9th January 2025, About 2 hours ago
I have had student tenants ask me to accept rent on a termly basis to align with their student loan payments, as they didn’t trust their own ability to manage their money and pay rent monthly….