Plea to MPs to reconsider likely ban on upfront rent payments

A PropTech chief wants MPs to think again about restricting tenants being asked to pay upfront rent ahead of the start of tenancies.

Amendments tabled to the Renters Rights Bill by the government suggest there may be restrictions on the amount of rent that can be sought in advance of a tenancy.

The I newspaper says agents and private landlords will be banned from asking tenants for several months’ of rent payments in advance.

Now The Lettings Hub, a PropTech firm, says that 15% of tenants paying the highest rental amounts – £5,000 and above – rely on paying rent in advance. It is likely that this trend is driven by overseas students, where the tenant may be unable to secure a UK-based guarantor.

Additionally, self-employed tenants with fluctuating incomes often use advance payments to demonstrate their financial reliability and secure a home.

Meanwhile, just 6% of tenants paying £1,000 or less per month in rent choose to make their rental payments in advance. Landlord Today