The Renters’ Rights Invoice’s cap of advance rents to 1 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, stated: “That upfront hire was their solely strategy to offset weak credit score or lack of UK references.
“With out it, they’re prone 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 properties. Everybody else will get shut out.”
The invoice may also exchange fastened tenancies with rolling periodic tenancies, and permit tenants to maneuver out with simply two months’ discover.
Simmons urged a set tenancy is way extra appropriate for contract employees, NHS locums, individuals between properties and momentary mission workers, the place a 3-6 month settlement can at the moment 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 threat understanding the tenant may give two months’ discover and depart at any time, Simmons warned. This uncertainty makes it just about not possible for landlords to plan round re-letting or regaining possession.
There are comparable points for house owners of short-term leases, who may battle to regain vacation lets after the federal government repeals Floor 3 of Part 8.
Simmons additionally claimed the non-public pupil rental market may “collapse”, as fastened phrases aligned with educational years is the best answer for landlords, which may make them much less inclined to hire to college students after periodic tenancies come into pressure.
