House of Commons – Jan. 14, 2025 – 75

I beg to move, That the clause be read a Second time.

Clause text:

New Clause 13 - Prohibition of rent in advance after lease entered into (except initial rent) “In the 1988 Act, after section 4A (inserted by section 1 of this Act) insert— ‘4B Assured tenancy: prohibition of rent in advance (except initial rent) (1) Terms of an assured tenancy which provide for when rent is due are of no effect so far as they provide for rent to be due in advance. (2) But subsection (1) does not apply— (a) to an excepted tenancy, or (b) to terms of any other assured tenancy so far as they provide for initial rent to be due during the permitted pre-tenancy period. (3) Where terms of an assured tenancy providing for when the rent for a rent period is due are of no effect by virtue of this section, the tenancy has effect as if it provided for the rent for that rent period to be due on the substitute rent day for that rent period. (4) In a case where the terms of the tenancy (after taking account of section 4A) are such that— (a) one or more of the periods of the tenancy will be compliant rent periods, and (b) the compliant rent periods have a regular pattern, the regular rent day which falls during a rent period is the “substitute rent day” for the rent period. (5) In any other case, the first day of a rent period is the “substitute rent day” for the rent period. (6) The compliant rent periods of a tenancy “have a regular pattern” if those periods meet the following two conditions— (a) all of the compliant rent periods will be the same length (and, for this purpose, all periods of one month are the same length);

(b) the rent for all of the compliant periods will be due— (i) on the same day during each of the periods (such as the same day of the week in a weekly period or the same date in the month in a monthly period), or (ii) on the same description of day during each of the periods (such as the last day, or first weekday, of a period);

and that day, or day of that description, is the “regular rent day”. (7) The condition in subsection (6)(a) is met even if the first period of the tenancy is of a different length from all the other compliant periods;

and, in such a case, the condition in subsection (6)(b) is met even if the rent for the first period of the tenancy is due on a different day, or description of day, from all the other compliant periods. (8) For provision enabling a holding deposit to be used to pay initial rent due during the permitted pre-tenancy period, see Schedule 2 to the Tenant Fees Act 2019. (9) The Secretary of State may, by regulations, amend this section for the purpose of making provision about the descriptions of rent due in advance to which subsection (1) does not apply. (10) Regulations under subsection (9)— (a) may make different provision for different purposes;

(b) are to be made by statutory instrument. (11) A statutory instrument containing regulations under subsection (9) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. (12) In this paragraph— “compliant rent period” : a rent period is a compliant rent period if the rent for the period is due during the period — and, in determining this, the effect of this section on when rent is due must be disregarded;

“due in advance” , in relation to rent, means due before the rent period for which it is payable;

“excepted tenancy” means— (a) an assured tenancy of social housing (within the meaning of Part 2 of the Housing and Regeneration Act 2008) if the landlord is a private registered provider of social housing;

(b) an assured tenancy granted pursuant to Part 7 of the Housing Act 1996 (homelessness);

“initial rent” means rent that is payable for— (a) the first rent period, or (b) any later rent period which ends during the initial 28 day period;

and here “initial 28 day period” means the period of 28 days beginning with the first day of the first rent period;

“permitted pre-tenancy period” means the period that— (a) begins when the tenancy is entered into, and (b) ends with the day before the first day of the tenancy;

“regular rent day” has the meaning given in subsection (6)(b);

“rent period” means a period for which rent is payable under the assured tenancy;

“substitute rent day” means the day determined in accordance with subsection (4) or (5).”’—(Matthew Pennycook.)