Renters could still face demands for large upfront payments, charities are warning, despite a Labour election promise to cap the amount landlords can ask for in advance.
The Renters’ Rights Bill, which bans Section 21 or “no fault” evictions, will be debated by MPs for the first time on Wednesday.
But the bill does not mention Labour’s election promise to “end massive upfront payments” that landlords can demand. Some landlords ask for several months’ rent in advance at the start of a contract.
A housing department spokesperson said the government was confident the new law would protect tenants from such practices.
The government is understood to believe that overhauling rental contracts so they are on a rolling one-month basis – rather than fixed term – will stop landlords from asking for more than three months’ rent in advance.
But legal advice received by Shelter and other housing groups disputes this.Polly Neate, chief executive of Shelter, said there nothing in the bill “to prevent landlords from demanding tenants either cough up huge sums of rent up front or hit the road”. 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.” Ministers are understood to be aware of the concerns and are considering if changes are needed.
Source: BBC
