Lettings organisation warns Government not to ban ‘rent in advance’
Safeagent warns that new clauses 13 and 14 of the Renters' Right Bill will harm the very people they purport to protect.
A lettings industry organisation has written to Housing Minister Matthew Pennycook strongly urging him to drop two of the recently-added amendments to the controversial Renters’ Rights Bill, which will ban rent in advance.
The Bill is currently making its way through the Lords at speed and it expected to gain Royal Assent in just two months’ time.
The letter, which is from Safeagent – which claims to be the UK’s largest not-for-profit industry accreditation scheme for lettings and managing agents, calls for recently-added Clauses 13 and 14 to the Renters’ Rights Bill to be withdrawn. Both will collectively ban landlords and agents from charging rent in advance or ‘upfront’ before a tenancy begins.
Seriously concerned
The letter says: “We are seriously concerned that these clauses will severely restrict access to the private rented sector for less well-off prospective tenants, some of whom will be vulnerable or at risk of homelessness”.
Of particular concern, the letter stresses, are those scenarios where Local Authorities have historically paid rent upfront for tenants they need to house.
“Payment of multiple months of rent upfront can be a legitimate option for low-income tenants, including those claiming benefits,” says Isobel Thomson, Chief Executive of Safeagent (main image).
“This includes people who are being helped by Local Authority schemes which incentivise landlords to make properties available to homeless people or those at risk of homelessness.
“For example, an Assured Shorthold Tenancies scheme in Bristol offers landlords up to six months’ rent in advance. It is important that Local Authority incentive schemes should continue to have the option of paying rent in advance.”
What doesn’t appear to be addressed is the legal technicality that once fixed term tenancies are banned and all ASTs are [monthly] periodic it will not be possible to take more than 1 months rent in advance as the additional rent could be claimed as a tenancy deposit that exceeds 5 weeks rent and has not been protected in an approved deposit scheme.
New legislation will need to specifically deal with this potential claim and prosecution scenario if it were to be permissible to take rent in excess of 1 month for a periodic tenancy.