Baroness Thornhill (LD)

My Lords, in view of the time, I will speak briefly to Amendment 43. I could simply say the first sentence: “We are strongly opposed to rent in advance because it is discriminatory”. This amendment is being framed as a cosy option where tenants and landlords can reach a mutual agreement as to whether or not they will do this. No, I do not believe that. If allowed, it will become, as now, a requirement. In effect, it will become a bidding war by any other name, and landlords have their pick of tenants: Zoopla has just reported that there are between 20 and 25 punters for each property and at least 20 requests to view each property. Landlords can pick, it is a beauty parade, so they can choose the tenants who have the money to give them six months’ rent up front against those who just do not have those advantages. But those same people can still afford to pay the rent and would still make good tenants. We are opposed to anything that prices out poor renters in hot rental market areas. We refute the argument being discussed by landlord groups that this is an option for niche circumstances that allows people to access housing; for example, as was said, where people might struggle with credit checks. If you are struggling with credit checks, it is highly unlikely that you will be able to pay six months’ rent in advance. In a very modest property in Watford, six months in advance is between £6,000 and £8,000. That is a lot of money. We know that landlords and letting agents often use it as a barrier to reject tenants relying on universal credit or housing benefit, preventing them accepting a tenancy, which means that only those with savings or family support to draw on will comply, which those on low incomes are less likely to have. Shelter tells us that six in 10 renters have been asked for it and over 800,000 people in one of its surveys say they were not able to secure a property because of the demand for rent in advance. The Bill aims to prevent discrimination against renters on benefits. This amendment would allow it by the back door.