MPs back one-month cap on advance rent payments

MPs person voted for a new, one-month headdress connected precocious rent payments successful England arsenic the Renters' Rights Bill edges person to becoming law.

Housing curate Matthew Pennycook confirmed the summation of a clause to halt landlords making upfront charges successful the Commons connected Tuesday.

Landlord groups person warned the determination could permission spot owners unfastened to hazard if tenants person nary different mode of proving their quality to wage rent connected an ongoing basis.

And Independent MP Jeremy Corbyn warned immoderate tenants were being evicted earlier the bundle of protections successful the Bill, which includes a prohibition connected "no-fault" evictions, tin travel into effect arsenic expected this summer.

Setting retired the details of the headdress successful the Commons, Pennycook said the authorities wanted to halt demands for "large rent-in-advance payments", which helium said could sometimes magnitude to 12 months of rent.

Tenants who were "perfectly capable to spend the monthly rent" were being asked to springiness landlords "ever larger sums" successful advance, helium said, oregon "risk being locked retired of renting altogether".

The latest determination comes connected apical of existing measures intended to halt bidding wars for homes wherever "often hopeless tenants are pitted against each different truthful that landlords are capable to extract the highest imaginable outgo they can"..

Shadow lodging curate David Simmonds said the measure had "many shortcomings" and would make "concerns astir the availability, and the affordability of accommodation successful the backstage rented sector".

A conjugation of groups representing landlords and letting agents claimed the headdress connected upfront payments could permission tenants incapable to beryllium their quality to screen their rent.

The groups, including the National Residential Landlords Association (NRLA), said: "Cutting disconnected immoderate assurance landlords mightiness question erstwhile renting to those who cannot easy beryllium their quality to spend a tenancy is neither applicable nor responsible."

But immoderate MPs, including Green Party co-leader Carla Denyer, called for the authorities to spell further and present rent controls.

The Bristol West MP said the precocious outgo of renting was leaving radical "on the streets" truthful "rent controls are inactive needed - due to the fact that having the close to thing you cannot spend and cannot entree is nary assistance to anyone".

Labour's Bell Ribeiro-Addy, who is simply a renter and the MP for Clapham and Brixton Hill, said rent rises should beryllium capped due to the fact that "I'm yet to perceive a compelling crushed wherefore landlords should spot their incomes turn faster than radical who really enactment for a living".

And erstwhile Labour person Corbyn suggested evictions were happening earlier protections could beryllium introduced, saying "there seems to beryllium rather a batch of landlords astatine the contiguous clip who are utilizing unreasonable arguments successful bid to terminate tenancies oregon rise rents up of this authorities coming in".

Pennycook acknowledged determination was "a batch of atrocious signifier successful the sector" that the authorities was keen to clamp down on, and acknowledged the imaginable for "retaliatory economical no-fault evictions" successful the interim period.

However, helium drew the enactment astatine rent controls, saying determination was grounds the measurement could harm tenants.

"Once Section 21 ["no-fault"] evictions are done distant with, unscrupulous landlords volition nary uncertainty effort to evict tenants who asseverate their rights by means of extortionate rent rises," helium said.

However, helium added, "the authorities sincerely judge that the instauration of rent controls successful the backstage rented assemblage could harm tenants arsenic good arsenic landlords arsenic a effect of reduced supply, and discourage investment".

Polly Neate, the main enforcement of lodging foundation Shelter, welcomed the caller headdress connected precocious payments - but urged the authorities to spell further connected controlling rent rises.

She said: "For years, renters person been forced to magic up eye-watering sums up-front oregon spot their hopes for a location vanish.

"With payment recipients astir doubly arsenic apt to beryllium blocked from renting by demands for rent up-front, the authorities is perfectly close to usage the Renters' Rights Bill to rein this discriminatory signifier in.

"To genuinely marque renting much unafraid and affordable, the Bill indispensable bounds in-tenancy rent increases successful enactment with either ostentation oregon wage growth."

The measure was supported by a bulk of MPs astatine 3rd speechmaking and volition present walk to the Lords.