Call for cap on rent in advance demanded by agents 

Call for cap on rent in advance demanded by agents 


Todays other news

Tenants’ activist group Acorn is campaigning to beef up the Renters Rights Bill to cap the amount of rent in advance demanded by agents on behalf of landlords.

Last month the group asked a small number of tenants – 353 – who had moved to a new private rented home in the last three years, about their experience of landlords and letting agents seeking rent in advance. 

Acorn also collected demographic data including whether or not respondents were benefits claimants, excluding child benefit.

The group says the results indicate that benefit claimants are being asked to pay multiple months rent in advance more often than those who don’t receive benefits.  It also claims the data shows that they are more likely to be asked to pay a higher number of months in advance compared to those not in receipt of benefits.

Results:

% asked to pay >1 month’s rent up front
51.3% – of all respondents

54.1% – of all benefit recipients

46.7% – of everyone not in receipt of benefits

54.1% – of parents with a dependant child

% of respondents asked to pay ≥6 month’s rent up front
23% – of all respondents

42.3% – of all benefit recipients

28.7% – of everyone not in receipt of benefits

32.43% – of parents with a dependent child

% asked to pay 12 month’s rent up front

7.6% – of all respondents 

18.8% – of all benefit recipients

6.1% – of everyone not in receipt of benefits

8.1% – of parents with a dependent child



Highest number of month’s rent asked for in advance (of those who have been asked to pay >1 month in advance)

Mean of everyone – 5.87 months

Mean of people on benefits – 7.22 months

Mean of people not in receipt of benefits – 4.95 months

Typical number of months rent asked for in advance (of those who have been asked to pay >1 month in advance)

Mean of everyone – 4.90 months

Mean of people on benefits – 6.51 months

Mean of people not in receipt of benefits – 3.98 months

Acorn says that in the light of the survey’s findings it wants a cap of one month on the amount of rent that can be asked in advance. It also wants agents and landlords to only be able to request a guarantor if the prospective tenant’s income will not cover the rent, and if neither the tenant nor landlord has insurance for non-payment of rent.

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