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The Renters' Rights Bill is progressing through Parliament and has now passed the report stage. It will now move to the House of Lords for the next phase of the legislative process, with expectations for it to be passed by summer.
In addition, MPs have approved an amendment that will cap the amount landlords can request as rent in advance to just one month's rent.
Currently, landlords may ask for rent in advance as a safeguard against potential affordability concerns with tenants. However, this safeguard is likely to be removed once the Bill becomes law. Under the new legislation, landlords will also be required to refund any amounts paid in advance above the one-month rent cap, therefore eliminating the protection they currently have.
Although MPs considered implementing rent controls, the government ultimately rejected this proposal. As Housing and Planning Minister Matthew Pennycook stated:
“The government sincerely believes that introducing rent controls in the private rented sector could harm both tenants and landlords, leading to reduced supply and discouraging investment.”
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