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Generation Rent is the latest buy to let body to question the controversial Tenant Fees Bill, suggesting that it could be used by rogue landlords to exploit tenants.
Generation Rent has joined the Residential Landlords Association (RLA) and Association of Residential Letting Agents (ARLA) in condemning the Tenants Fees Bill. Generation Rent has suggested that landlords might be able to use the bill to include unfair clauses in tenancy agreements.
Generation Rent Director Dan Wilson Craw suggested that a clause in the Bill could give rogue landlords leeway to include unfair clauses in tenancy agreements which could be difficult for the tenant to fulfil.
He explained: ‘It would be difficult for the tenant to prove that a payment demanded as a result of defaulting on a tenancy term exceeded the loss suffered by the landlord – so it would be difficult to challenge an unfair payment.’
Generation Rent also argued that setting the cap on deposits at six weeks’ rent presented a serious barrier for tenants looking to move home.
Wilson Craw continued: ‘The government needs to look at how to reduce the burden of this, for example by allowing the transfer of deposits between tenancies.’
The Residential Landlords Association (RLA) and Arla Propertymark have already spoken out about issues they view with the bill, which was introduced to the Commons this week.
The RLA argued that the Bill marks a missed opportunity to make quicker and more sustainable improvements in the rental market. It stated that through taking months to become law and then further time to implement, the bill was inefficient, and far quicker changes could have been made.
ARLA Propertymark was of the opinion that there is not scope for the Bill to achieve its aim. It cited its own research as saying tenants will end up worse off with a fee ban due to raised rents, rather than seeing a more affordable private rented sector.