Housing Secretary Angela Rayner (main picture) yesterday introduced amendments to the Renters’ Rights Bill that would cap the amount of rent landlords can demand upfront to a maximum of one month’s rent.
The legislation is set to return to the House of Commons for its Report Stage on Tuesday, 14 January 2024.
The proposed amendment aims to alleviate financial pressures on tenants, ensuring greater accessibility to rental housing. However, the move has sparked debate within the property industry.
But commenting on the changes, Timothy Douglas, Head of Policy and Campaigns at Propertymark, warned of potential unintended consequences.
REDUCING OPTIONS
He says: “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.”
Douglas highlights the diverse circumstances that lead tenants to pay rent upfront, such as fixed incomes, difficulties passing referencing and affordability checks, and precarious work arrangements.
He adds: “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.”
BROADER STRATEGY
The Renters’ Rights Bill is part of the government’s broader strategy to reform the private rental market, addressing concerns over affordability, tenant security, and landlord practices.
While tenant advocacy groups have largely welcomed the proposed cap, industry stakeholders argue that more nuanced policies may be necessary to balance the needs of landlords and tenants alike.
The debate is set to intensify as MPs scrutinise the legislation in the coming days.
