The Labour government is introducing a new policy with the Renters’ Rights Bill (Picture: Getty Images)
Moving house can often strike fear into the hearts of renters without thousands of pounds in savings to cover hefty rent and deposit fees, but now, landlords will soon be banned from asking for more than one month’s worth upfront.
The Renters’ Rights Bill will now make it illegal to ask tenants to pay more than one month plus a deposit equating to six weeks’ worth of rent – undoubtedly welcome news for those struggling to scramble together copious amounts of money after signing a new tenancy agreement.
In December 2024, figures from Zoopla placed the average UK rent at £1,270 per month for a property with between one and four bedrooms – but naturally, it’s much higher in london, reaching an eye-watering £2,188.
And, with Gen Zs and Millennials dubbed ‘Generation Rent’ – in reference to exorbitantly priced, largely inaffordable houses – many of us might not ever own a home without generational wealth, leaving us locked into the cycle of paying landlords thousands of pounds a year.
That’s when we’re able to even make our rent payments, too, as in 2023, a report from StepChange Debt Charity found that one in six private renters (equating to 1.2 million people) were relying on credit to make ends meet.
So, when we’re asked to pay several months’ worth upfront, we could either be rinsing our life savings or actively going into debt.
‘We’re putting an end to renters being ripped off by outrageous upfront costs that leave them struggling to make ends meet or locked out of housing altogether,’ Deputy Prime Minister and Secretary of State for Housing Angela Rayner told i newspaper.
Renting in the UK can often be a minefield (Picture: Getty Images/Westend61)
‘Our Renters’ Rights Bill will transform the rights of 11 million private tenants, ending rental bidding wars and abolishing ‘no fault’ eviction, making the system fairer and giving renters more security, stability and protections.’
The new law could change renting in cities like London forever – where it’s commonplace to hear, while searching tooth and nail for a flat that’s actually liveable and affordable, of competitors volunteering to put down vast amounts upfront in a bid to secure it.
For working-class and low-income people without the security blanket of either inherited wealth or a decent amount in savings – or for people without a UK-based guarantor – this can make finding a new home a living nightmare.
Ceylin Cakar is originally from Turkey and has been living in the UK since 2018. In August 2023, she needed a UK-based address to extend her visa by September 2023 – but she’d recently moved out from her previous flat and went back home to visit her family for a few days.
When she returned to London, she didn’t have anywhere to stay, and so the urgency of the situation was growing.
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With only one month until her visa application deadline, she was frantically searching during one of the busiest periods of the year – when students are looking for new tenancies, as are many new graduates.
‘There weren’t many options, but I eventually found a flat in White City and I was very stressed about the visa situation,’ Ceylin, now 25 and running her own business as a freelancer, tells Metro.
‘I wasn’t thinking clearly, so I found this agency and I didn’t do any proper background research about them. Later I found that they were a very dodgy company.
‘Being a freelancer, you might make a lot of money in one month and then another not so much, so the income isn’t as stable. They didn’t like my financial records, so they told me that I needed to either provide a UK guarantor or pay six months in advance.’
Because Ceylin didn’t have a suitable guarantor in the UK, she had to go to her parents and ask to borrow £6,000 – the amount that would cover six months’ worth of rent – by the following week.
Ceylin had to borrow six months’ worth of rent from her parents (Picture: Ceylin Cakar)
‘It’s a lot of money to ask for with very short notice, and I didn’t have enough in savings,’ Ceylin notes. Luckily, her parents were able to lend her the money – but acquiring it within such a short time frame was stressful.
But when she moved in, she was given the wrong room, and the flat was such a mess that the agency had to relocate her to a different one temporarily – though that wasn’t much better.
‘The stove wasn’t working, it was filthy, and there was expired food in the cupboards,’ she details.
‘I was showering at my gym four or five times a week or crashing at my friend’s place. I wasn’t even using the flat even though I’d already paid for it.
‘It effectively tied me to a contract that I couldn’t get out of. Because I’d paid for six months, I had to stay there.’
Naturally, Ceylin welcomes the news that the government is changing the policy.
‘From an international person’s view, imagine coming from a different country and you don’t know anyone, and you come from a poor background. It makes people very vulnerable,’ she says.
Ceylin isn’t alone. When renting a flat in Camden, Nell Mead was asked to pay one year’s worth of rent in one instalment – which equated to £31,200, since the monthly rent was £2,600.
‘I stayed for two years, and in the second year, I managed to negotiate it down to six months,’ Nell, who is 47 and works in East London as a physiotherapist, details.
‘I was evicted when my landlord’s mortgages – on his family home and the property I was renting from him – both came up for renewal and shot up. That was at the end of a two-year tenancy so although I was sad to leave, I could accept it.’
Nell was asked to pay one year’s worth of rent in one instalment (Picture: Nell Mead)
After moving out, Nell was once again asked to pay one years’ worth of rent in advance for a new flat in Leytonstone – this time amounting to £34,800 (£2,900 per month). When she re-signed for a second year, she managed to negotiate it down to six – £17,400.
She was initially told that she would be able to rent it for between three and five years, but after 14 months, she received a section 21 notice with no explanation despite having just paid for six months upfront.
‘It later transpired that my landlord’s wife had died and he wanted his house back which I have sympathy with, but the lettings agents still withheld my overpaid rent and my deposit for several months,’ she concludes. ‘The agent was awful.’
The Renters Rights’ Bill will impact 11 million private tenants (Picture: Getty Images)
Along these lines, the government’s new move has been endorsed by ACORN, a trade union that works alongside renters and often fights against illegal evictions or poor living standards.
‘A ban on landlords being able to charge months and months of rent in advance is welcome news for the many renters struggling to secure a place to call home,’ ACORN’s policy officer Anny Cullum tells Metro.
‘We’re in the midst of a housing crisis, with rising rents and a lack of social homes causing misery for millions. Low-income people, young families and those on benefits are among those who are struggling most. They’re also the people more likely to be asked for several months, or even longer, of rent up front, something that is simply not possible for many.
‘This is an issue that ACORN has been fighting for years, and we’re pleased to see the government is moving to end it. The Renters’ Rights Bill should bring about huge positive change for renters, but we will continue fighting until everyone has an affordable and good quality home: a place to live a happy and healthy life.’
Will the new legislation work?
So, why have landlords been allowed to ask for such vast amounts upfront until now?
As Abtin Yeganeh, Director and Head of Property Litigation at Lawrence Stephens tells Metro, landlords often use these hefty deposits for peace of mind when, for example, tenants might not have a UK-based guarantor.
‘In order to tackle issues of bad credit and/or renting to overseas individuals, landlords often seek rent in advance as additional financial security. This can amount to six months’ rent in advance,’ Abtin details.
But as he believes, we’ll have to wait and see how it pans out – and whether landlords listen to the details of enforcement.
‘The outcome of these reforms is that tenants should, in theory, have more options when it comes to securing rental properties as they will not have to compete with prospective tenants who can pay a lump sum in advance.
‘However, given that landlords have a choice as to who they want to take on as a tenant, it remains to be seen whether the proposed changes have the desired effect.’
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Landlords will soon be banned from asking for more than one month’s rent upfront
Landlords will soon be banned from asking for more than one month’s rent upfront
