New Clause 14: Renters’ Rights Bill
New Clause 14 - Prohibition of rent in advance before lease entered into
(1) Schedule 1 to the Tenant Fees Act 2019 (permitted payments) is amended in accordance with subsections (2) and (3).
(2) After paragraph 1(1) (rent is a permitted payment) insert—
“(1A) But a payment of rent is a prohibited payment if—
(a) it is payable before the tenancy is entered into, and
(b) the tenancy is an assured tenancy.
(1B) This paragraph is subject to paragraph 1A.”
(3) For sub-paragraph (2) of paragraph 1 substitute—
“Increased rent
1A (1) If the amount of rent payable in respect of any relevant period (“P1”) is more than the amount of rent payable in respect of any later relevant period (“P2”), the additional amount payable in respect of P1 is a prohibited payment.
(2) That is subject to the following provisions of this paragraph.”
(4) After section 5 of the Tenant Fees Act 2019 insert—
“Other provision about rent in advance
5A Pre-tenancy payments of rent: prohibitions
(1) A landlord must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to the landlord in connection with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to the landlord in connection with an assured tenancy of housing in England, or
(c) accept from a relevant person a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(2) A landlord must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to a third  party in connection with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connection with an assured tenancy of housing in England, or
(c) accept from a third party a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(3) A letting agent must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to the letting agent in connection with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to the letting agent in connection with an assured tenancy of housing in England, or
(c) accept from a relevant person a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(4) A letting agent must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connections with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connection with an assured tenancy of housing in England, or
(c) accept from a third party a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(5) The Secretary of State may, by regulations made by statutory instrument, amend this section for the purpose of making provision about the descriptions of rent due in advance to which any provision of subsection (1), (2), (3) or (4) applies.