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Labour unhappy at multi-month up-front rent demanded by landlords

Labour’s shadow housing secretary has branded “outrageous” moves by landlords and letting agents to demand multiple months of rent upfront. 

Lucy Powell has told the i newspaper: “It’s outrageous that landlords and lettings agents are trying to price people out of a place to live. Requiring months and months of upfront rent is wrong, and brings the sector into disrepute.

“We have long urged the government to bring forward the Renters Reform Bill to tackle problem behaviour yet they have failed to prioritise this legislation, kicking it into the long grass.”

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Powell was commenting in response to an article in the i citing a tenant in Manchester who was asked to pay six months’ rent up front, totalling £7,500. Another tenant quoted in the paper was renting a £1,200 ppm property but was expected to pay £14,000 up front.

Both the National Residential Landlords Association and the Ministry of Housing, Communities and Local Government have in recent months publicly suggested landlords should try to avoid asking for multiple months’ rent up front, and instead seek guarantors or insurance if they fear the tenants’ income may be jeopardised.

 

Some campaigners have interpreted this tactic as a way of landlords and agents getting around the Tenant Fees Act, which strictly controls fees and services that can be charged for, but does not specifically outlaw hefty multiple-month deposits.

The newspaper claims that “as landlords lose their nerve due to growing number of tenants falling into arrears amid the economic fallout of the pandemic, it is resulting in growing instability for 4.5 million households – close to 20 million people – who rely on renting privately in England.”

You can see the article here.   

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  • George Dawes

    It's not wrong , it's called financial common sense , something which eludes most politicians

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    What do you expect with several anti-landlord unnecessary Acts, Rules & Regulations in recent years it’s non-stop everything to destroy us and this is more. This wouldn’t have happen if the constant interference hadn’t caused it, so it’s your fault now you’ll want yet another Act because of all the damage your other Acts have caused. It would be great if you get a job, get a life and stop sponging off Private LL’s, or would that involve you with more than bureaucracy.

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    “as landlords lose their nerve due to growing number of tenants falling into arrears amid the economic fallout

    I think its money we are losing not nerve

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    When politicians make it impossible for LLs to evict non-paying tenants they will take whatever action they believe protects them best.

    A report out yesterday highlighted the fact that 70%. of us are basic rate tax payers - we cannot afford to house people for free - and so LLs have become creative in how to ensure they receive their rent.

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    If landlords are so hard done by instead of ripping off tenants with months worth of rent.. sell your second or third house you overprivileged whiners.

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    You don’t like private landlords. Don’t give your money. Simple . Get your precious Labour Party or shelter to house you

     
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    Daniel, it's the non paying tenants that are doing the '' ripping off'' as you put it.

     
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    That is exactly what this 'over privileged whiner' intends to do - so where are all the now homeless tenants going to live Daniel? Me selling up doesn't put the deposit in anyone else's pocket or increase the number of social housing units available. We are a significant part of the housing market and as we leave the pressure on the remaining stock will ensure higher rents & more homeless families. Is that what you want?

     
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    No one is forcing you to rent. The parasites expect free housing. Typical entitled behaviour from the lazies.

     
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    Daniel, what EXACTLY is your definition of 'Overprivileged'? If by that term you are referring to working 7 days a week, 12-18 hour days and dealing with significant levels of stress to get to a point whereby one is able to afford to save a deposit and then put it up to pay for a second property to have some small amount of financial freedom to allow for a reasonably secure retirement, then yes, most Landlords would agree, they are guilty as charged. For those of us who fall into this category, and stats show that the vast majority of Landlords only own 1-2 properties for rental purposes, they are vilified for financially planning ahead, making sacrifices and on top of that, providing a service to the general public by giving them one of our essential needs, a home.

    It's funny, ANYONE who has actually taken the plunge to set up and run their own business will never come out with these negative comments, mainly because they can empathise, they can understand what it takes to be not only successful, but more than that, the struggle to keep getting back up when all others have fallen by the wayside. Those that constantly complain and express their envy are the ones that will always see the glass as half empty, rather than like others who see it as half full.

    If you want absolute Equality in the world, forget it. We are not born equal. Some are born into wealth, some not, some are very intelligent, some are not, some have disabilities, some not, and so on. That really is life, so get used to it! However, if you want a fairer society, this can be improved on. But, there will ALWAYS be natural selection: There will always be 'Leaders' and 'Followers or Worker'. And that is simply due to the fact that being a leader takes certain skill sets and mental stamina, which as we already know, not everyone has.

    So, the reason some Landlords are asking for multiple months up front is to protect their investment and business. This is called having a business strategy, something which many of the people constantly complaining about and mislabelling the so-called 'privileged' would not know about. You know, a strategy, that thing which allows you to plan ahead more than a day at a time to enable you to get ahead in life and avoid some of the financial hardship that so many could avoid if they were a little smarter with things like budgeting for example and forgoing the summer holidays for a year or 2 or even 12!

    In short Daniel, don't think everyone is a multi-millionaire Landlord and born into it. Most of us have worked and still are working extremely hard. The main difference between the haves and have nots, if you really want to simplify it, is the mental mindset and approach. I have a 'can do and go to approach'. I don't limit myself or simply accept my environment. I stretch and challenge. This is why, for my main job I became a teach and instructor to allow me to engage with those same people and educate them to be able to become members of society which contribute rather than simply drain the state. Oh, by the way, I don't deliver 'Property Training'. My company delivers to the Health & Social Care Sector, Education, Security and Retail. We have, as a company helped hundreds of people back into work and upskilled them into better paid jobs. What have you done with your day so far? I would like to think that you have made a positive contribution to your society in some way.....maybe you have, I have no idea.

     
     G romit

    By "overpriviledged" you mean someone who has worked hard to save for a 20-25% deposit, then used their crediworthiness to get a mortgage to buy a house to let to somone who hasn't saved up a deposit to buy or doesn't want to buy a property.

     
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    Daniel C - If freeloader tenants are so hard up, they should rent a smaller home in a low rent location, or get paid work instead of expecting taxpayers & landlords to pay for the lazy bones you whiners feeling entitled to use others properties for free. .

     
  • John Ahmed

    Another political move by Labour as they've nothing else to offer voters but rubbish.
    Putting it simply, Labour are stupid... If they would like they can pay the upfront rent and the tenant can pay them back or they can act as guarantor.

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    Daniel, hardly privileged but the most bullied, abused, unfairly treated, criminalised, over regulated and over taxed section of Society. A pity you didn’t tell me before I bought & built it would have saved me a life’s work putting a roof over people’s heads and paying taxes to keep many of them. It was ok to buy pay the stamp duty, gov registration, legal’s, the Banks huge repayment real interest
    rates not the rubbish financial system they have now. So now you would like us to sell and pay the huge taxes again on inflation mainly and end up with nothing that’s some gratitude. I’ll tell you who’s over privileged the ones milking the system & never contribute financially to anything or the £8.6 b False Benefit Claimants, that’s from DWP so if they know that why is it allowed to happen or how much higher is the real figure. I don’t see any pressure Groups clamming in protest against it, its perfectly acceptable is it.

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    99.9% of landlords are good,honest hard working people who have taken risks and invested in property.
    So I am fed up with the lazy,benefit claiming ,never achieved any thing in their miserable lives people,who think the world owes them a living scroungers.
    Perhaps if they got off their arses and worked as hard as me,you too would perhaps have some properties,to put a roof over peoples heads.THAT THE GOVERNMENT FAIL TO DO, OR IS IT YOU ARE PERHAPS JEALOUS ?????????? that you have failed in your life.have a nice day

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    Nail on head there Paul.

     
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    Far better vent than mine. But that’s exactly how it is.

     
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    Daniel C, Oh Daniel C,

    I understand where you are coming from. I rented for 20 years before I bought my first house. I'm now a private landlord with 4 properties. I worked hard, very hard, very long and hard, and now I encourage those who, like me (a school drop out from a very underprivileged family of 11 with zero money and zero prospects) to stop feeling sorry for yourself, to stop seeking the answer to your woes Outside of yourself and look inside, deep inside yourself - for There lies the answer! Privilege is largely irrelevant in a country like the UK - you can get whatever you want IF you are prepared to work for it. Now, Go for it Daniel, Get up, Get on! We really want you to do well!

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    “It’s outrageous that landlords and lettings agents are trying to price people out of a place to live." - Yes, that's right I am trying to increase my rent until it is un-affordable so that I will have no income. What a ludicrous statement. The reality is If I have a good tenant, which so far all of them have been, I do not increase the rent. When the tenant moves on (mostly to buy their own house) I charge just under the going rate and house a new tenant within a couple of weeks. If only the politician had a grasp of the real world and market forces.

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    I don't come from a privileged background. I worked hard, saved hard and put a lot of effort into getting qualifications. I find the thought of being poor frightening, especially in old age so I have striven to avoid that. I've put my savings in property because I want to make the money work, and because I love being a landlord. I have a great relationship with my tenants and I enjoy ensuring that they have good quality, affordable homes. I've never charged money upfront and have been very flexible all through the pandemic. A few of my tenants are in arrears, but we have a plan to manage that and I'm confident that they have every intention to catch up soon. However, I'm now selling one house and intend to sell the rest as the tenants move out. I'm sick of the stress of constant legal changes and obligations, worried that future tenants may no be so nice and fed up with being branded a parasite. I'm told that my properties are popular with overseas investors so I doubt the next generation of landlords will provide the personal service that traditonal small-scale retiree landlords like me have offered.

  • Mohammad Kamran  Iqbal

    Landlord charge the market rate of rent. I don’t see people moaning in Tesco that items are expensive! Why target landlord? It is a business and no one can stop them. All businesses have to protect themselves because Boris and his cronies will not support us. My sister has lost rent since March 2020 at £1800pcm. That’s £30,600 lost to date. Eviction granted in court. Tenants have not left and bailiff have been paid and instructed. She is waiting for them. Property was bought in November 2019 on mortgage. She has had to adjust her finances to continue paying her mortgage. Will labour or Boris Johnson support my sister or at least help her recover her loss from her tenant? No.

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    Lol 😂 This article clearly states that Labour is Anti PRS LL, not Boris (or his cronies as you described)!!
    If anyone is jealous of Boris’s role in coping with this CoVID19 whilst Brexit was implemented, and keep the country financially & strategically on growth path, they really need their brain examined.

    Labour or Liberals would definitely not help your sister, unless she wants to live on benefits-then they will promise her help but not deliver as usual.

    Fyi- It’s Labour who want CPO (compulsory possession orders) of more than 1 property, free homes
    for renters because they are after they votes 🗳 of students, and lazy people who just wish to live on benefits instead of working to earn an income, look after themselves and buy own homes.

    Labour didn’t get my vote last time and they won’t get it next time.
    In my properties No rent = Eviction, no ifs no buts no Labour or Liberals - end of.

     
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    Labour was once the party for the working man, it's now the party for the benefit scroungers

     
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    Spot on Andrew T!
    Labour is a party of benefit scroungers. They promise everything for free when it’s 🗳 time as if money grows on Jack and The Beanstalk tree 🌳.
    Anyone with half a brain knows that CoVID19 has depleted money 💰 and resources globally therefore nothing can be for free - except Labour’s free promises.
    Labour would sell U.K. to EU or a socialist communist, or an African consortium to make Britain’s current, and future generations slaves by losing British identity, by destroying the proud heritage & historic legacy of Great Britain.

     
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