Renters’ Rights Bill

Baroness Scott of Bybrook Excerpts

Tuesday 1st July 2025 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

43: Clause 8, page 12, line 23, after “for” insert “more than six months”
Member's explanatory statement
This amendment would allow a person to mutually agree a tenancy with a landlord which requires them to pay up to six months of rent in advance.

[Baroness Scott of Bybrook (Con)]

My Lords, the payment of rent in advance can provide significant benefits to tenants that go beyond simply avoiding late fees or demonstrating financial security. Many tenants choose to pay rent in advance for financial planning, to ease the stress of monthly payments or to manage upcoming financial burdens. Amendment 43 in this group recognises and affirms this choice, firmly rooted in mutual agreement between tenant and landlord.

We did consider introducing a 12-month period proposal at Committee stage. However, in a spirit of compromise, and having listened carefully to the views expressed in Committee, we have instead brought forward a six-month proposal. We hope that the Government will recognise this as a reasonable and constructive step, and we hope that noble Lords can support this.

If a tenant does not wish to pay rent in advance, they would be under no obligation to do so. However, there are particular groups who would benefit from this flexibility, including overseas students and those with poor or limited credit histories. Many tenants with lower credit ratings face barriers to securing housing that are often no fault of their own. By paying rent in advance, these individuals could demonstrate responsibility and financial reliability, improving their chances of obtaining a tenancy.

Similarly, overseas students often lack a UK credit history and therefore require UK-based guarantors, which is not always possible. For those students, paying rent up front for a term or even an entire academic year is a practicality and a common solution. I ask the Minister to clarify what impact these amendments might have on overseas students’ ability to secure accommodation and whether the landlord will maintain incentives to rent to those tenants despite their limited credit history.

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I turn to government Amendment 44, which introduces a small technical clarification to the drafting of Clause 8. As such, I do not need to take up too much of the House’s time. It provides that any terms in a tenancy agreement that require a payment of rent before it is due are of no effect. This amendment clarifies that this provision applies only to assured tenancies entered into after commencement. I commend Amendment 44 to the House.

[Baroness Scott of Bybrook (Con)]

My Lords, allowing tenants, where mutually agreed, to pay rent in advance of up to six months provides an important option for many, particularly those who may face barriers such as a poor credit history, overseas students without a UK credit record or those who simply wish to manage their finances proactively. This choice should be respected and preserved, not restricted by over-prescriptive regulations.

Housing is a personal and often complex matter, and we acknowledge the complexity of balancing landlord protections with tenants’ rights, particularly regarding initial payments such as deposits and the first month’s rent. However, it demands legislation that is flexible enough to accommodate different circumstances without sacrificing fairness and stability.

I know the hour is late but we believe that this is an important amendment for the freedom and flexibilities that tenants require in this sector. I would therefore like to test the opinion of the House on my Amendment 43.