Rent in advance – should it be banished?

  • 4 weeks ago

The UK government’s proposal to limit the amount of rent tenants can pay in advance to just one month is likely to have unintended negative consequences for tenants. While the measure is aimed at addressing affordability and curbing unscrupulous practices, it overlooks the important role that advance rent payments can play in securing housing for individuals who may not meet conventional referencing criteria.

This blanket restriction risks alienating tenants who despite having the financial means to pay rent upfront, may face barriers such as a lack of credit history, irregular income, or non-traditional employment.

One critical point often overlooked is that many landlords and letting agents, particularly those regulated by ARLA Propertymark, use advance rent arrangements to create opportunities for those who might otherwise struggle to access the rental market.

For tenants with non-traditional circumstances—such as freelancers, international students, or those with poor credit histories—offering several months’ rent in advance can be a legitimate way to demonstrate financial reliability and secure a tenancy.

Limiting this option to one month could inadvertently exclude these individuals, pushing them toward unregulated landlords who might engage in less ethical practices.

Rather than imposing rigid restrictions, a more effective solution to protect tenants and promote fairness in the rental market would be to ensure that all letting agents are regulated and adhere to professional standards.

Blanket regulation would provide accountability and transparency, creating a level playing field and reducing opportunities for unscrupulous behaviour. It is worth noting that agencies like us here at Lawton & Dawe Properties (who are regulated and qualified professionals), already operate with integrity and prioritise tenant welfare.

We strongly believe regulation should be extended across the industry, ensuring that tenants receive consistent and fair treatment regardless of the agency or landlord they deal with.

By focusing on regulation rather than limiting tenants’ payment flexibility, the government could address the root causes of exploitation without disadvantaging those who rely on upfront payments as a pathway to securing housing.

We are positive that a well-regulated rental sector benefits everyone—tenants gain security, landlords receive reliable tenants, and professional agents can operate without being undercut by scrupulous competitors. This approach would foster a more inclusive and fair rental market, achieving the government’s aims without creating unnecessary barriers for tenants.

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