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One month's advance rent payment rule: 'Blowing the self-employed'

Self-employed people and students could be excluded from the PRS following the government's move to limit the amount of rent collected before tenancy to one month.

This is a warning from the Rental Housing Association, which also says the measures could hit the build-to-rent housing sector.

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recent hurdles

The Tenants' Rights Bill has passed its latest hurdle in parliament, as MPs gave it a third reading and tabled it before the Lords.

A series of government amendments were passed to change the bill, including banning landlords and allowing agents to demand more than one month's rent at the start of a tenancy. .

The self-employed and retirees will be most affected by these unintended consequences. ”

Brendan Geraghty, ARL CEO

Brendan Geraghty, chief executive of the Rental Association (ARL), said: “We are concerned that new amendments to the Tenants' Bill of Rights that would pre-restrict rents will create new barriers to entry for those already maxed out in private housing.”The rental sector.

“Those most affected by these ‘unintended consequences’ are the self-employed and retirees, who are often able to pay a lump sum but provide sufficient proof of income to satisfy the landlord. I can’t.”

Students affected

He said overseas students and professionals who are unable to pass nomination checks would also be affected.

“This measure will also prevent students from paying rent (in three installments over the academic year) in accordance with their student loans, potentially leading to more students falling into arrears and facing financial pressure,” he said. say.

“The uncertainty caused by the lack of security of tenure will negatively impact confidence in investing in the construction of much-needed rental housing.”


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