Renters' Rights amendment could make it harder for vulnerable tenants to find a home

Vulnerable tenants could find it more difficult to find a home if the Government accepts a new amendment to the Renters' Rights Bill restricting the amount of rent landlords can take in advance to just a month.

Details of the amendment were made late last night, ahead of the report stage of the Bill which will be held in the Commons next Tuesday, 14 January.

The NRLA is arguing that many renters who have poor credit history or variable incomes often offer advance rent to mitigate the risk to landlords who may otherwise be concerned they wouldn't be able to maintain the tenancy.

Getting rid of their ability to do this may make it even harder for them to find somewhere to live.

The change, should it be accepted, would also impact foreign students who often pay their rent in advance ahead of coming into the country.

Chris Norris, NRLA Policy Director said: “Restricting rent in advance, combined with freezing housing benefit rates and not enough rental housing to meet demand is creating significant barriers for those with poor or no credit histories needing to access the sector.

"This includes international students and those employed on a short-term or variable basis with an income that fluctuates.

“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.   

“Ministers must provide clarity on how tenants unable to easily demonstrate their ability to afford and sustain their tenancies should do so.

"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.”

More information

• For full details of the amendments tabled to the Renters’ Rights Bill ahead of report stage click here.
• You can keep up to date with all the developments of the Renters Rights Bill, by accessing our exclusive member Hub here.  
• NRLA members can sign up for our next webinar on the Renters' Rights Bill to be held the day after third reading, next Wednesday, 15 January. The session will run from noon til 1pm. on Zoom. For more information and to sign up click here.
• Extra dates have been added for our new Renters’ Rights course, after training sessions sold out in record time. For more information and to book click here. 
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