Rent in advance limit included in Renters' Rights Bill as it moves to House of Lords

Amendments from the Committee Stage were voted on in the House of Commons before the Bill completed its journey in the Commons on 14 January 2025. The Bill now moves on to the upper house for further scrutiny. Disappointingly, the UK Government has so far refused to reconsider the removal of fixed term tenancies despite challenges from the sector. It has been confirmed that the Bill will not contain any regulations for minimum EPC standards, which will be consulted on separately by the Department for Energy Security and Net Zero in the coming months.

Westminster Houses of Parliament lampost

Propertymark continues to strongly campaign for amendments to the Bill which strike a balance of fairness for both tenants and landlords. While the legislation aims to protect renters, there is a real risk that overly restrictive regulations will push landlords to sell their properties, reducing the supply of rental homes, driving up rent prices and making it even more difficult for people to find affordable housing.

For the Bill to be workable and effective, it needs to create protections for renters without discouraging landlords from staying in the market, ensuring both groups can utilise property to rent.

Key amendments now included in the Bill

 
Limiting rent in advance

By preventing tenants from paying rent upfront the UK Government will potentially reduce the housing options available to financially vulnerable people. 

People on fixed incomes like pensions, those with lower incomes, the self-employed, and overseas students may all have challenges in passing referencing and affordability checks. Paying a larger proportion of rent at the start of a tenancy gives tenants an alternative way to evidence their ability to sustain a tenancy, giving landlords confidence in renting to them.

Housing Minister Matthew Pennycook, MP, stated that landlords will still have the ability to request one month's rent in advance, alongside a security deposit of up to 5 or 6 weeks rent. He went on to say that use of referencing and affordability checks, and the ability to request guarantors, should be enough to give landlords confidence.

Eviction grounds for student tenancies

The Bill currently only makes eviction Ground 4A available for student HMOs if the tenancy is signed less than six months before its start date. However, it is common practice for student agreements to be signed up to a year in advance, driven by students who want to ensure they have secured accommodation in line with the predictable pattern of the academic year.

If Ground 4A cannot be used, it could interfere with landlords regaining possession of their property ahead of each academic year, impacting future tenancies.

Furthermore, this Ground does not apply to one- and two-bedroom (non-HMO) properties rented to students, leading to serious concern that property owners will not have enough security to continue offering their properties to students, reducing the availability of decent accommodation for young people in university towns.

Landlord fees to fund Ombudsman

Fees paid by landlords will directly fund the creation and work of the private rented sector Ombudsman, providing renters and landlords with access to an effective and fair dispute resolution service.

Guarantors cannot be liable after a tenant dies

This amendment prevents an individual guarantor being asked to pay rent for a property after the person (or people) they are standing guarantor for dies. Housing Secretary Angela Rayner commented that this will safeguard bereaved guarantors, who are often family members, against financial hardship during a time of grief.

Private rental sector database

The UK Government has now set out the information that will be required about the landlord and the properties they rent out. This includes the name, address and contact details of the landlord and managing agent, details of any enforcement action taken against the landlord or agent, and details of any previous eviction notices that have been served to a tenant. Registration will be compulsory, and the costs of the database will be covered by fees paid by landlords.

Home adaptations for disabled tenants 

Although this amendment was withdrawn before the vote, Pennycook gave assurances that it will be discussed further at the next stage. The proposal would give disabled tenants a right to appeal if landlords do not agree to adaptations recommended by a local authority Home Assessment, as long as the recommendations are ‘reasonable adjustments’ under the Equalities Act 2010. 

Examples of reasonable adjustments include installing ramps or grab rails, changing taps and light switches, widening doorways, or installing motion-activated lighting near doorways and paths.

Working for our members

Propertymark remains actively involved in campaigning on the Renters’ Rights Bill, building on our work with its predecessor, the Renters’ (Reform) Bill. Our focus is on advocating for fair, balanced, and effective reforms to the private rented sector, ensuring the voices of property agents are heard throughout the legislative process.

We’ve highlighted the vital role letting agents play in shaping these reforms, emphasizing their expertise to help achieve positive outcomes for both tenants and landlords. Our regional executives have been instrumental in communicating member concerns directly to the UK Government, ensuring these perspectives are considered during the development of the legislation.

Propertymark has consistently raised awareness about the potential impacts of the legislation, offering constructive suggestions to create balanced reforms. To influence policy development, we’ve provided expert testimony to parliamentary reports, responded to public consultations, and produced research reports and briefings that have been shared with Ministers and UK Government officials.

We also keep our members informed and prepared for major changes in the rental market. This includes a regularly updated Toolkit, detailed guides, and practical advice to help letting agents understand and adapt to the Renters’ Rights Bill.

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Renters' Rights Bill

The Renters’ Rights Bill was introduced to the UK Parliament on 11 September 2024, will ban Section 21 evictions, and introduce a new tenancy regime and new requirements for property standards and rent increases.