Labour is set to ban landlords from charging more than a month’s rent upfront as part of planned rent reforms.
The government has said it will ban the practice as part of its new Renters’ Rights Bill. As part of the bill, landlords will also only be allowed to raise rents once a year and to the market rate.
Housing minister Matthew Pennycook said in parliament on Tuesday that “demands for extortionate rent in advance” can exclude certain groups from renting altogether.
According to Shelter, more than 800,000 private renters have been unable to rent a home in the last five years because they couldn’t afford advanced payments.
Responding to the incoming ban, Tom Darling, Director of the Renters’ Reform Coalition, said: “For too long, extortionate rent in advance demands have allowed landlords to discriminate against poorer renters.
“It’s great the government have acted on this and listened to renter groups by setting out clearly that this practice will be prohibited.”
However, critics have warned the practice of charging big sums upfront can act as a form of insurance for landlords when tenants cannot pass credit checks.
They argue that outlawing the practice will give landlords less protection against potentially risky tenants, and make it more difficult for tenants with poor credit scores to secure a house.
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