Landlords to be banned from asking for money upfront under new renting rules
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Private landlords will be banned from asking tenants for several month's worth of rent payments upfront as part of Labour's upcoming Renters’ Rights Bill. According to a report from the I, the government will introduce new rules that cap advance payments at one month. Currently, there is no cap on how many months of rent a landlord can demand from prospective tenants, meaning some people could be forced to fork out thousands of pounds to secure themselves a home - potentially forcing some to take on debt.
The new rules will allow landlords to ask for one month's rent alongside a housing deposit. Under the Tenant Fees Act 2019, a deposit can be up to six week's rent. The government says this will provide "financial assurance" to landlords while also cracking down on “unscrupulous” property owners.
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.”.
Private renters already face scrupulous referencing and affordability checks when trying to obtain a property. These checks include needing to list an employer, providing months' worth of payslips or having to provide a guarantor. However, landlords claim the ban would leave them at risk of unreliable tenants.
