New law could ban landlords from demanding 'extortionate' up-front rent payments

manchestereveningnews.co.uk:

A new law could stop landlords from demanding 'extortionate' up-front payments from new tenants. A proposal, which would make it unlawful for a landlord to request or accept more than a month’s rent in advance, has been welcomed by campaigners - but criticised by some in the property sector.

The Renters’ Reform Coalition has condemned the "extortionate" upfront costs traditionally required from renters prior to taking on a new lease, saying this has discriminated against less wealthy tenants for 'too long'.

But the National Residential Landlords Association has voiced concerns that such restrictions could pose a risk to landlords if tenants cannot show other means of ensuring they can pay rent regularly.

Tom Darling, director of the Renters’ Reform Coalition, expressed approval for government action, stating: "For too long, extortionate rent-in-advance demands have allowed landlords to discriminate against poorer renters – it’s great the Government have acted on this and listened to renter groups by setting out clearly that this practice will be prohibited." On the other side, the NRLA insists on clarifications on how tenants with variable income or international students, who may have trouble showing their ability to maintain payments, will manage under these new regulations.