Landlords would be banned from demanding several months’ rent in advance under new amendments to the upcoming Renters’ Rights Bill.

Housing Secretary Angela Rayner laid the amendments which limit the amount of rent a landlord can demand up front to one month, ahead of the legislation returning to the House of Commons next Tuesday.

Most landlords ask for at least one month’s rent in advance but can ask for more if tenants have a poor credit rating or can’t provide a guarantor or references. There is currently no legal limit on the advance payment.

Assurance

The NRLA warns that the government is cutting off any assurance that responsible landlords might seek when renting to those who can’t easily prove their ability to sustain tenancies and pay their rents. “In the end, those who will suffer most are those the government most wants to help,” says policy director Chris Norris.

“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.

Challenges

“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.”

However, the news has been welcomed by tenant groups who believe the government’s intervention seeks to put an end to the "horror stories" of renters being asked to pay as much as a year’s rent in advance to find a home.

Tom Darling, director of the Renters’ Reform Coalition, says for too long, extortionate rent in advance demands have allowed landlords to discriminate against poorer renters. He adds: “As the legislation moves forwards, we hope they will continue to listen to calls for the Bill to be strengthened, such as by getting rid of the loophole that allows landlords to evict tenants using extortionate rent hikes, by introducing a cap on rent increases.”

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