Landlords slam move to limit rent paid ahead of tenancy
The NRLA says the Government is taking away an assurance to landlords, that tenants can afford the rent ahead of a tenancy starting.
Landlords have attacked a Government move to limit the amount of rent collected ahead of a tenancy starting.
The National Residential Landlords Association (NRLA) says the measure will take away any assurance landlords and letting agents have that tenants can afford the rent.
Housing Secretary Angela Rayner has submitted an amendment to the Renters’ Rights Bill that will restrict rent due in advance to one month.
Extortionate rent
Her colleague, Matthew Pennycook, who is the Housing Minister, told MPs in November: “The Government recognise that demands for extortionate rent in advance place a considerable financial strain on tenants and can exclude certain groups from renting altogether.
“We are very clear that the practice of landlords demanding large amounts…must be prohibited.”
The Government is cutting off any assurance responsible landlords might seek.”
Now, Chris Norris, Policy Director for the NRLA, says: “The Government is cutting off any assurance responsible landlords might seek when renting to those who cannot easily prove their ability to sustain tenancies and pay their rents.
“In the end those who will suffer most are those the Government most wants to help.
High risk
“Expecting landlords to take on high levels of risk without practical assurances is not a sustainable solution and risks further exacerbating the challenges in an already constrained market,” he says.
A survey of tenants by The Deposit Protection Service (DPS) last year showed that 60% who had moved within the past year, said they paid between two and three months’ rent upfront to secure their property.
The survey of 2,210 tenants also revealed that 8% had paid as much as four to six months’ rent upfront, and a further 5% said they had paid between nine and 12 months’ in advance.
We use a third party company who carry out the financial due diligence on applicants who we will pre-vet to ensure they meet the criteria to pass the referencing before putting them forward. Currently, if it can be foreseen they will fail due to lack of stable income we can put them forward to pass on the basis of paying rent in advance. What this amendment will cause us to do is immediately dismiss the applicants who don’t have the income regardless they may have the funds to pay rent in advance. On the DPS research, this amendment has the potential to disadvantage 60% of rental applicants. Typical of this government it focuses on the negatives to push a flawed agenda.
The PRS is now getting hilarious, are they seeing how bad they can make it for tenants on purpose? they must be. Politicians can’t be that thick can they? …oh.
What about when the tenant wants to pay 6 months up front as they can’t supply the correct references? It’s an alternative that mustn’t be taken away as it could make some people effectively unable to rent or buy thereby making them homeless!! Unfortunately this is state control over free markets. If a landlord asks for too much up front and you don’t like it – DON’T RENT IT! Simple free market rules.
Bit by bit this shambles of a government is forensically dismantling the Private Rental Sector under the direction of their Marxist advisors masquerading as charities. They forget that we don’t have to invest our hard earned savings in property and by removing every incentive to do so will create a cataclysmic housing crisis worse than anything seen since WW2!