Charities warn renters not protected from large upfront payments

Polly Neate, chief executive of Shelter, said there nothing in the bill “to prevent landlords from demanding tenants either cough up huge sums of rent up front or hit the road”.

“These renters need bold action, no ifs, no buts. 

“The Renters’ Rights Bill must crack down on these unreasonable demands like huge upfront sums of rent and high-earning guarantors that drive homelessness.”

Ministers are understood to be aware of the concerns and are considering if changes are needed.

Labour promised to cap the amount of rent a landlord could demand upfront during the election campaign, but did not define the level of advance payment they considered appropriate. The housing minister, Matthew Pennycook, who was then shadow housing minister, said landlords shouldn’t be allowed to demand more than five weeks’ rent, external for most tenancies.

Analysis by Shelter, shared with BBC News, suggests more than 800,000 private renters have not been able to rent a home in the last five years because they could not afford the rent in advance.

A spokesperson from the Ministry of Housing, Communities and Local Government (MHCLG) said: “Landlords should not price people out of homes by requesting large amounts of rent in advance.

“We’re confident that the Bill provides adequate protection against such practices and we will continue to ensure action is taken where necessary”.

Deputy Prime Minister Angela Rayner will address the Commons on Wednesday before a debate on the bill.