Leading lawyer comments on Labour’s plan to ban rent in advance

David Smith says although he is surprised how far Labour has gone the practice drives poorer tenants into the arms of loansharks.

david smith labour rent

Leading property lawyer David Smith has sought to explain Labour’s proposed ban on agents and landlords who ask for rent in advance, saying that while it is not used much by some, it is “prevalent in parts of the market and drives poorer tenants into the arms of high interest and illegal lending”.

Smith, who has not been slow to criticise some aspects of Government housing policy in the past, says the Renters’ Rights Bill as a whole, but in particular banning rent in advance, shows just how influential tenant groups like Shelter and Generation Rent are.

“Rent in advance is a more surprising point, but generally reveals the power that tenant groups, representing a clear chunk of Labour voters, have with a party that needs those votes,” says Smith of JMW Solicitors.

“Overseas students, while important, do not vote and so are not ever going to matter as much. Landlords tend not to vote Labour and so faced with choosing between those two elements it is clear where the government will go.”

It was bound to be a target although I am a little surprised by how far the government went on this.”

“It was bound to be a target although I am a little surprised by how far the government went on this,” he says.

Despite some of the both sensible and radical measures within the Bill, Smith doesn’t think the bill will force landlords out of the PRS, even with a ban on Section 21 ‘no fault’ evictions.

“I doubt there will be a mass landlord exodus. Landlords will sell and other landlords will buy into the sector. The number of landlords will likely reduce and they will own more properties,” he says.

More on rent in advance and the Renters’ Rights Bill


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