Landlords are set to be banned from asking for money upfront under new renting rules. Landlords will no longer be able to request thousands in upfront rent from tenants, with advance payments capped at one month by the new Labour Party government.
Private landlords will be banned from asking tenants for several months’ of rent payments in advance and the Government will introduce new rules that cap advance payments at one months’ rent under the upcoming Renters’ Rights Bill.
Landlords are currently able demand thousands of pounds in upfront rent payments. Under the changes, landlords will still be able to ask tenants to pay one month’s rent upfront, alongside a deposit of up to six weeks’ rent as allowed under the Tenant Fees Act 2019.
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Deputy Prime Minister and Secretary of State for Housing Angela Rayner said: “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.”
Chris Norris, of the National Residential Landlords Association (NRLA) said that banning landlords from asking for rent upfront was “cutting off any assurance responsible landlords might seek when renting homes to those who cannot easily demonstrate their ability to sustain tenancies and pay their rents.”
Norris defended the practice of requesting rent upfront and said landlords only ask for it “where a prospective tenant is unable to meet regular referencing requirements” in order to “mitigate the risk of default”. He added: “Commonly this happens when a tenant is new to the country and does not have a track record in the UK, such as international students, or where they are unable to provide sufficient evidence of income to sustain the tenancy.
“This includes applicants that meet the minimum income requirements for a tenancy but are employed on a short-term or variable basis with an income that fluctuates accordingly.”