A coalition of property industry Chief Executives have warned that proposed changes to the Renters’ Rights Bill risk making it harder for vulnerable tenants to access private rental housing.
In a letter to Housing Minister Matthew Pennycook the Chief Executives of Leaders Romans Group; the National Residential Landlords Association (NRLA); the British Property Federation; Propertymark; Goodlord; Paragon and Keystone Property Finance, expressed deep concerns over the impact of New Clauses 13 and 14 within the legislation.
The letter outlines fears that Clause 13, which prohibits tenants from paying multiple months of rent upfront, could disadvantage those who rely on such arrangements to secure housing.
Many tenants with poor credit histories, irregular incomes, or international backgrounds use advance rent payments to demonstrate their financial reliability.
FURTHER ALARM
The proposed ban, while intended to reduce cost pressures, could inadvertently prevent these individuals from accessing rental properties.
Further alarm was raised about Clause 14, which prevents landlords from requesting the first month’s rent before signing a tenancy agreement.
Industry leaders argue that this change undermines landlords’ ability to limit financial risk, particularly when renting to tenants with a history of missed payments.
The letter also highlights the challenges posed by the government’s decision to freeze housing benefit rates from April.
GREATER DIFFICULTY
With no adjustment to reflect rising rents, claimants will face even greater difficulty securing homes in a market where landlords are increasingly risk-averse.
The removal of fixed-term agreements also raises further concerns about guarantors, as few would be willing to commit to an open-ended financial obligation.
Industry leaders also criticized the lack of preparation for the reforms’ impact on the justice system.
They also expressed concerns over the Property Tribunal’s ability to handle a surge in rent disputes, particularly given the absence of mechanisms to help tenants establish whether proposed rent increases are fair before escalating cases.
RENT ASSESSMENTS
They suggested empowering the Valuation Office Agency to provide rent assessments, easing the tribunal’s workload and accelerating case resolutions.
While the coalition supports the Bill’s objectives of improving rental standards and ending Section 21 “no-fault” evictions, they warned that the reforms could unintentionally harm the very tenants they aim to protect.
They called on the government to provide a clear roadmap for implementing the changes to avoid disruption and ensure a smooth transition for both tenants and landlords.
The letter concludes with a request for a meeting with the minister to discuss these concerns and find solutions that balance tenant protections with the realities of the rental market.
RESTRICTING ACCESS
Micheel Cook, Chief Executive of Leaders Romans Group, says: “We accept that Section 21 repossessions are ending, and support measures to ensure every rental property is of a decent quality.
“However, the Government’s proposed changes risk making access to rented housing harder for the very people we want to support.
“Limiting rent in advance, combined with frozen housing benefit rates and not enough rental housing will make it all but impossible for those with poor or no credit histories in the UK to prove their ability to sustain tenancies. This includes international students, workers from overseas and those employed on a short-term or variable basis with an income that fluctuates.
“Cutting off any assurance landlords might seek when renting to those who cannot easily prove their ability to afford a tenancy is neither practical nor responsible. Those who will suffer are those most likely to struggle to pass affordability checks.”
