The Bill is due to return to the House of Commons for its Report Stage and Third Reading on 14 January, before moving to the House of Lords for further scrutiny.
Under changes contained in the amended version of the Bill, agents and landlords will still be able to ask tenants to pay one month’s rent upfront, alongside a deposit of up to six weeks’ rent as allowed under the Tenant Fees Act 2019.
However, for a significant minority, including people with poor or no credit history, those on fixed incomes, overseas students, and self-employed tenants with fluctuating incomes, the ability to make advance payments allows them to demonstrate their financial reliability and secure a home.
Data from The Lettings Hub shows that in the last three years just 7% of tenancies began with an upfront payment of more than four month’s rent, and that this was more than twice as common for the most expensive properties. Far fewer tenants paying under £1,000 per month paid rent in advance, which challenges the idea that lower-income tenants are being pressured to pay more.
Whilst the UK Government wants to transform the experience of private renting, by banning the taking of rent in advance they are potentially reducing options for tenants to access private rented property.
There are a wide range of circumstances and scenarios that impact how people pay their rent, and Ministers must do more to understand why rent in advance is used by both landlords and tenants and avoid one size fits all policies.
Making member voices heard
Propertymark is meeting with officials from the Ministry of Housing, Communities and Local Government (MHCLG) on 20 January 2025 to discuss members’ questions and concerns about the Bill as it stands, and we will continue to make the case for evidence-based policies that support a flexible and fair private rented sector for all.
Read about the work we’ve done so far - Renters' Rights Bill | Propertymark
Whilst we acknowledge the drive towards improved standards, the UK Government must fully understand and recognise the impact these changes will have on agents up and down the country left wondering how this legislation will help meet the much-needed demand for homes for people to rent.
Get involved
Writing to your MP as a resident and business owner or employee is a powerful way of ensuring your voice is heard. There is a huge demand for rented property across the country, so it is vital that legislative change is fit for purpose and does not cause landlords to leave the sector or deter new entrants from providing much needed homes to rent.
Act now with our campaign toolkit, complete with guidance, templates, and essential talking points for engaging with your local MP.
Supporting agents to adapt
Propertymark is delivering a programme of webinars and training courses to help agents understand how the Renters’ Rights Bill might affect them. We also recommend members attend their Regional Conference to hear the latest thinking and updates.
Members can also sign up for email updates on legislation by setting their preferences in their online account, visiting our online Knowledge Hub and FAQs, and joining our hugely active and supportive Facebook Group.
