Renters’ Rights Bill: Parliament’s Amendments and Its Path to the House of Lords

The main focus of the Renters’ Rights Bill so far has been the abolition of fixed-term tenancies (making all tenancies periodic) and, with this, the removal of Section 21 “no fault evictions.” As a result, tenants will have the right to remain in their home until they choose to end the tenancy, as long as they provide their landlord with two months’ notice. For more information on this and the bill’s other key features, please see here.

On 14 January 2025, the bill was presented again in the House of Commons for its report and third reading, where the government introduced further amendments, some of which are detailed below. The bill has since moved to the House of Lords for its first reading, which entails additional review and scrutiny. The legislation is expected to come into effect around the summer of this year.

Restrictions on upfront rent payments 

The government has brought in new provisions to restrict landlords or agents from asking tenants for more than one month’s worth of rent in advance: this will apply to both tenancies and licences. At present, there is no limit on the amount that a landlord can ask for upfront. 

This means that a landlord would not be permitted to accept rent in advance even if the tenant offers this voluntarily, as doing so would constitute a breach of the Tenancy Fees Act 2019.

Matthew Pennycook, the Minister of State for Housing and Planning, explained the reason behind this amendment as follows: 

“the Government have long recognised that demands for extortionate amounts of rent in advance put undue financial strain on tenants and can exclude certain groups from renting altogether.” 

In addition, some unscrupulous landlords have been using upfront rent payments to foster competition between prospective tenants and selecting the highest offer for added security.

Whilst this reform appears to be a positive step towards protecting tenants from bidding wars and the burden of shelling out large sums up front, there are concerns about its practical impact. Critics argue that this amendment could negatively affect financially vulnerable tenants, such as those with poor or no credit histories or who may not meet the necessary affordability checks, for example, international students, overseas workers, and those who have varied earnings. Paying rent in advance can often be a legitimate solution to provide peace of mind to landlords that these individuals will not default on payments. The proposed ban on rent in advance could take away this option for less financially secure tenants, leaving them with limited housing options. 

Student accommodation 

The Government debated the issue of students feeling pressured to sign rental contracts for the next academic year well in advance (and often much earlier than is necessary), without having had the chance to finalise their friendship groups or consider other options available to them, before committing to the tenancy. This also poses a problem for landlords, as student tenants may vacate the accommodation early, having been rushed into the rental contract too soon.

“This arms race, in which students are pressured ever earlier in the year to enter into contracts for the subsequent academic year, clearly is not benefiting them, and it is arguable whether it benefits the student landlords engaged in it.” (Matthew Pennycook)

A measure has been included to prohibit the above under new possession ground 4A. The landlord will be unable to regain possession when students in houses of multiple occupation (HMOs) have entered into a tenancy agreement more than six months in advance of the date of occupation.

Private Rented Sector Database

The bill envisages the setting up of a mandatory national database where landlords will be required to register themselves and their properties. This aims to provide tenants with greater transparency and information, including their landlord and managing agent’s name, address, and contact information. It will list details of any local authority enforcement action taken against landlords and any prior eviction notices issued to tenants. There will also be penalties issued for failure to register. 

For landlords, the database should act as a “one-stop shop” with all the relevant guidance through a single “front door”. It will also serve to communicate updates to landlords regarding their legal requirements and provide them with access to current statutory guidance.

Registration fees for the database will be used to fund a private rented sector Ombudsman, giving renters and landlords alike a dispute resolution service.

Protections for guarantors

In cases where the guarantor is related to a tenant, they will no longer be liable for rent payments following the tenant’s death, which the government has described as “safeguarding bereaved families”.

There were several more amendments implemented and you can read the latest version of the bill here

The bill is set to have its second reading in the Lords on 4 February 2025, giving its members the chance to review and debate the key principles of the legislation and voice any general concerns that they may have. We wait to discover which further amendments will be raised in due course.

Subcribe to news and views