A prominent lettings agency group claims the Renters Rights Bill could block access to good-quality housing for people who don’t fit the standard referencing mode, including overseas applicants, the self-employed and those without a UK credit history.
It says that at the heart of the issue is a proposed cap on advance rent, limiting it to just one month. While designed to protect renters, this change would remove a tool that thousands currently rely on to secure a home.
LRG’s Q1 2025 Lettings Report survey shows that 57% of tenants have encountered difficulties securing a property, with 21% saying the main challenge was raising several months’ rent up front, a practice often used to strengthen an application when conventional references are limited. Closely linked barriers are no UK credit history at 11% and self-employed or irregular income at 10%.
It says 57% of tenants have already faced difficulties securing a rental property. Specifically, the survey asked landlords how likely they were to accept people on low income with or without several months’ advance rent. With additional advance rent, 41% are likely to accept a low-income tenant. However, without it, this figure falls to just 6%.
Some 41% of landlords say they’re likely to accept a low-income applicant if they can pay rent in advance. Without that option, willingness drops to just 6%.
Separate National Residential Landlords Association research confirms that 91% of landlords already take no more than one month in advance and only 8% ask for more, generally when references are thin or credit history is weak.
LRG insists that the impact could be especially severe for international renters. It cites a recent Times article highlighteding that overseas students, who often can’t provide a UK guarantor, rely on paying several months in advance to pass referencing. If that route disappears, they could be forced into more expensive, less flexible accommodation.
Allison Thompson, national lettings managing director at LRG, comments: “The intention to make renting fairer is positive, but fairness must start at the application stage. Our data shows that many tenants rely on rent in advance as a practical, proven solution.
“Four in ten landlords are open to this where it helps a reliable applicant secure a home. Capping advance rent could have the opposite effect to what’s intended, making the system less fair for those who already face barriers.
“We urge Parliament to protect the option for landlords and tenants to agree a higher up-front payment where it’s the only route to securing a home. Negotiated advance payments, used with safeguards, are a bridge into housing, not a loophole.”
This article is taken from Landlord Today