In amendments to the renter’s reform bill announced yesterday, landlords could only ask for one month’s rent in advance.
The announcement was made by the minister of housing, communities and local government, Matthew Pennycook, in a bid to stop overly large, advanced sums being demanded and bidding wars being waged between tenants.
“It would prevent unscrupulous landlords from using rent in advance to either set tenants against each other in de facto bidding wars,” said Pennycook.
He continued, “or exclude altogether certain types of renters who are otherwise perfectly able to afford the monthly rent on a property.”
Landlords will still be able to take a tenancy deposit of five or six week’s rent.
Any rent payment made before a tenancy agreement is signed will also be a prohibited payment, with those landlords and letting agents who invite, accept or encourage these payments liable for a possible fine of up to £5,000 and local authority enforcement action.
Landlords will also no longer be able to include any terms in a tenancy agreement which requires rent to be paid before its due date, while tenants may still pay in advance if they wish to do so.
Pennycook said the impact of this change would be, “that tenants can be certain that the financial outlay to secure a tenancy will not exceed the cost of a tenancy deposit and the first month’s rent, and that they will not be required to pay their rent earlier than agreed.”
