Last week the Renters’ Rights Bill took a step closer to becoming law amid growing concerns within the industry that it could be a mistake.
Already it appears landlords are seeking better yields to mitigate against the greater risk of bad debt, and now industry groups including The British Property Federation and The National Residential Landlords Association have signed a statement rejecting the planned changes in their existing form.
A coalition of organisations said: “We accept that Section 21 repossessions are ending, and support measures to ensure every rental property is of a decent quality. However, the government’s proposed changes risk making access to rented housing harder for the very people we want to support.
“Limiting rent in advance, combined with frozen housing benefit rates and not enough rental housing will make it all but impossible for those with poor or no credit histories in the UK to prove their ability to sustain tenancies. This includes international students, workers from overseas and those employed on a short-term or variable basis with an income that fluctuates… Cutting off any assurance landlords might seek when renting to those who cannot easily prove their ability to afford a tenancy is neither practical nor responsible. Those who will suffer are those most likely to struggle to pass affordability checks.”