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Despite a pledge from the Labour Party to limit the upfront payments that landlords can ask of renters, charities have warned of the potential for such charges to continue. This is comes as the Renters’ Rights Bill, which prevents “no fault” evictions, is set to receive its first reading on Wednesday. The legislation does not currently feature the Labour promise to “end massive upfront payments,” despite concerns from some renters. Landlords often require tenants to make several months of rent payments in advance, leading to concerns among campaigners that such demands could lead to financial difficulties and homelessness for some renters.
A spokesperson for the housing department stated that the government is confident that the new legislation will be able to protect renters from exploitative practices. This includes the possibility of altering rental contracts so that they move from fixed-term agreements to rolling monthly contracts. However, some charities have questioned the effectiveness of this approach. Legal advice shared by Shelter and other housing groups suggests that the proposed legislation will not do enough to protect tenants from demands for large upfront payments from landlords.
Chief executive of Shelter Polly Neate stated that the Renters’ Rights Bill offered little protection for those facing upfront payment demands. It is a view shared by some ministers, who are understood to be considering changes in response to these concerns. While Labour offered a commitment to cap upfront payments during the campaign, it did not define the amount considered acceptable. Housing minister at the time Matthew Pennycook indicated that landlords should not request more than five weeks’ rent for most tenancies.
Campaigners argue that such charges can contribute to larger homelessness problems, with more than 800,000 private renters believed to have been unable to rent over the past five years due to their inability to afford upfront payments. The UK government has taken steps to address the situation, although campaigners continue to call for further protections for renters. Deputy Prime Minister Angela Rayner will set out her thoughts on the situation before the parliamentary debate about the Renters’ Rights Bill takes place.
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