What Concerns Are Charities Raising Over Unchecked Landlord Demands?
Despite a commitment from Labour to cap upfront payments that landlords can demand from tenants, charities are warning that renters may still face significant financial burdens. The Renters’ Rights Bill, which seeks to ban Section 21 or “no-fault” evictions, will see its first debate in Parliament on Wednesday. However, the proposed legislation does not address Labour’s election promise to “end massive upfront payments.”
How Are Unaffordable Demands Threatening Housing Security?
Many landlords are known to request several months’ rent in advance when a new tenancy begins. A spokesperson for the housing department expressed confidence that the new law would protect tenants from such practices. The government believes that restructuring rental contracts to a rolling one-month basis, rather than fixed terms, will prevent landlords from demanding more than three months’ rent upfront.
However, legal opinions from Shelter and other housing organizations challenge this assumption. Polly Neate, chief executive of Shelter, stated, “There is nothing in the bill to prevent landlords from demanding tenants either cough up huge sums of rent upfront or hit the road.” She added, “These renters need bold action, no ifs, no buts. The Renters’ Rights Bill must crack down on these unreasonable demands like huge upfront sums of rent and high-earning guarantors that drive homelessness.”
Is the Government Aware of Concerns and Considering Changes?
Ministers are reportedly aware of the ongoing concerns regarding the Bill and are contemplating necessary changes to address them. During the election campaign, Labour pledged to limit the rent that landlords could demand upfront but needed to specify what would be considered an appropriate level of advance payment. Matthew Pennycook, the housing minister and former shadow housing minister, indicated that landlords should not be allowed to demand more than five weeks’ rent for most tenancies.
What Research Highlights the Housing Crisis as a Barrier to Renting?
Research conducted by Shelter indicates that over 800,000 private renters have been unable to secure housing in the past five years due to the inability to afford upfront rent payments. A spokesperson from the Ministry of Housing, Communities and Local Government (MHCLG) commented, “Landlords should not price people out of homes by requesting large amounts of rent in advance. We’re confident that the Bill provides adequate protection against such practices, and we will continue to ensure action is taken where necessary.”
What Will Happen During the Upcoming Debate in Parliament?
Deputy Prime Minister Angela Rayner is scheduled to address the Commons on Wednesday before the debate on the Bill amidst growing scrutiny and calls for more stringent regulations to protect renters from excessive upfront demands.
