The Renters’ Rights Invoice’s cap of advance rents to at least one month may have the impact of pushing susceptible tenants out of the market, an property company boss has warned.
Des Simmons, managing director of Bournecoast Property Brokers, mentioned: “That upfront lease was their solely solution to offset weak credit score or lack of UK references.
“With out it, they’re more likely to be screened out by landlords earlier than they even apply.
“This invoice may unintentionally create a two-tier rental market, the place solely the ‘good’ tenants, these with clear credit score, common jobs, good references, can get houses. Everybody else will get shut out.”
The invoice can even change mounted tenancies with rolling periodic tenancies, and permit tenants to maneuver out with simply two months’ discover.
Simmons instructed a set tenancy is much extra appropriate for contract staff, NHS locums, folks between houses and non permanent challenge employees, the place a 3-6 month settlement can at present be signed with landlords.
If a tenant’s employment reference doesn’t present long-term, everlasting work in a single location, landlords will see them as excessive danger realizing the tenant may give two months’ discover and go away at any time, Simmons warned. This uncertainty makes it nearly unimaginable for landlords to plan round re-letting or regaining possession.
There are comparable points for homeowners of short-term leases, who may wrestle to regain vacation lets after the federal government repeals Floor 3 of Part 8.
Simmons additionally claimed the non-public scholar rental market may “collapse”, as mounted phrases aligned with tutorial years is the best answer for landlords, which may make them much less inclined to lease to college students after periodic tenancies come into power.
