Landlords in England and Wales face ban on 'outrageous' upfront fees to rent out properties

Landlords in England and Wales will be banned from charging more than one month's rent in advance under reforms due to be voted on by MPs on Tuesday.

Housing Secretary Angela Rayner has amended the Tenants' Bill of Rights to limit the amount landlords can demand before tenants move in, as part of a package of new protections for rental properties.

The move was one of several amendments Reyna proposed before lawmakers debated the bill again on Tuesday afternoon. The housing minister also plans to stop landlords charging friends and family members who act as guarantors if a tenant dies.

The amendments add to core measures in the bill that will ban no-fault evictions for the first time and make it easier for tenants to demand immediate repairs from their landlords.

Rayner said: “For too long, working-class people and families have been at the mercy of a volatile and unfair rental market, facing staggering upfront costs and struggling to find a safe and secure place they can truly call home. .

“We are delivering on our promise to transform the lives of millions of renters, allowing families to put down roots and their children grow up in safe and healthy homes, and ensuring our young people can save for their futures.”

Tom Darling, director of the Renters Reform Alliance, said: “For too long, extortionate upfront rent requirements have allowed landlords to discriminate against poorer renters. The government has taken action and listened to tenant groups to make it clear It’s great that regulations prohibit this practice.”

Alex Sobel, the Labor backbencher who has called for limits on upfront payments, said: “This amendment addresses the specific challenges I have heard from constituents in Leeds Central and Headingley, while also enabling Renters across the country benefit and I’m delighted Angela Rayner has decided to ban early lettings.”

Rayner continues to face pressure to lower rents further by limiting how much landlords can raise rents during a lease.

A total of 36 Labor, Greens and independent MPs have signed an amendment calling on the government to prevent landlords from raising rents above inflation or average incomes. Ministers have so far refused to back such calls, saying capping rents could deter developers from building new homes.

“As the legislation moves forward, we hope they will continue to listen to calls to strengthen the act, such as by introducing a cap on rent increases that would eliminate loopholes for landlords to evict tenants through extortionate rent increases,” Darling said.