The Renters’ Rights Invoice’s cap of advance rents to at least one month may have the impact of pushing weak 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 option 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 ‘excellent’ tenants, these with clear credit score, common jobs, excellent references, can get houses. Everybody else will get shut out.”
The invoice may even exchange fastened tenancies with rolling periodic tenancies, and permit tenants to maneuver out with simply two months’ discover.
Simmons urged a hard and fast tenancy is way extra appropriate for contract employees, NHS locums, folks between houses and momentary venture employees, the place a 3-6 month settlement can presently 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 just about not possible for landlords to plan round re-letting or regaining possession.
There are related points for house owners 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 pupil rental market may “collapse”, as fastened phrases aligned with educational years is the best resolution for landlords, which may make them much less inclined to hire to college students after periodic tenancies come into pressure.
