“Whilst the Association for Rental Living welcomes legislation that will improve the rental experience and support the professionalisation of the rental sector, we are concerned that the new amendment to the Renters’ Rights Bill to restrict rent in advance, passed in yesterday’s Third Reading, creates another barrier to entry for those already on the margins of the private rented sector.
“The greatest impact of these ‘unintended consequences’ will be felt by the self-employed and retirees, who are often able to make lump-sum payments but cannot provide sufficient proof of income to satisfy landlords. The move will also impact overseas students and professionals who are unable to pass referencing checks due to the inability to perform financial checks. This measure would also prevent students from paying their rent in line with their student loan (in three tranches across the academic year) and may lead to an increased number of students falling into arrears and facing financial pressures.
“The Build to Rent sector, by design, appeals to a broad demographic of renters, offering choice and adopting fairness and flexibility as hallmarks of tenancy terms. Any measures which would potentially restrict flexibility and thus access to the good quality, secure homes which the Build to Rent sector provides, would not be in the interests of tenants. The uncertainty caused by a lack of security of tenure will have a negative impact on the confidence of investment to build much needed rental homes.”
Brendan Geraghty, CEO, Association for Rental Living
