‘Rent in advance’ ban causes problems for many tenants
Summary
Two major estate agency groups say the Renters’ Rights Act ban on rent in advance requests is creating unintended difficulties for some tenants, particularly overseas renters, international students and people with weaker credit profiles. They argue that, alongside the loss of Section 21, landlords are becoming more risk-averse and that guarantors may need to play a larger role as an alternative.
Why it matters
Surveyors involved in lettings, valuation or residential advisory work may see changing landlord behaviour, tenant affordability issues and shifting demand patterns in the private rented sector. The article also highlights potential knock-on effects from recent rental reform on access to housing and landlord risk appetite.
Key points
- LRG and Connells say the rent in advance ban has had unintended consequences.
- International students and tenants with poor credit may struggle to secure homes without upfront rent options.
- Landlords are reportedly less willing to take risks following the loss of Section 21.
- Guarantors are suggested as a common alternative for tenants who fail financial referencing.
- The issue is being raised with Government by industry leaders.
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