(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.

For this purpose “rent due in advance” means rent due before the period for which it is payable.

(6) Regulations under subsection (5)—

(a) may make different provision for different purposes;

(b) may make supplemental, incidental, consequential, transitional, transitory or saving provision;

(c) are to be made by statutory instrument.

(7) A statutory instrument containing regulations under subsection (5) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(8) In this section “prohibited pre-tenancy payment of rent” means a payment of rent that is prohibited by paragraph 1(1A) of Schedule 1.

5B Effect of a breach of section 5A

A term of an agreement between a letting agent and a relevant person which breaches section 5A is not binding on a relevant person.

Where a term of an agreement is not binding on a relevant person as a result of this section, the agreement continues, so far as practicable, to have effect in every other respect.”

(5) The Tenant Fees Act 2019 is further amended as follows—

(a) in section 6 (enforcement by local weights and measures authorities)—

(i) in subsection (1), in paragraph (b) omit “and” and after that paragraph insert—

“(ba) section 5A (pre-tenancy payments of rent: prohibitions), and”;

(ii) in subsection (3), for “or 2” substitute “, 2 or 5A”;

(b) in section 7 (enforcement by district councils), in subsection (1), for “and 2” substitute

“, 2 and 5A”;

(c) in section 8 (financial penalties), in subsection (1), for “or 2” substitute “, 2 or 5A”;

(d) in section 10 (recovery by enforcement authority of amount paid)—

(i) in subsection (1)(a), for “or 2” substitute “, 2 or 5A”;

(ii) after subsection (2) insert—

“(2A) But that obligation to pay the amount, or remaining part, of the prohibited payment is subject to subsection (3), unless it is a case where the payment is prohibited by paragraph 1(1A) of Schedule 1 (pre-tenancy payment of rent).”;

(iii) in subsection (3), for “But subsection (2) does not apply in relation to a prohibited payment” substitute “Subsection (2) does not apply in relation to the prohibited payment”;

(e) in section 15 (recovery by relevant person of amount paid), in subsection (1)(a), for “or 2” substitute “, 2 or 5A”.”.—(Matthew Pennycook.)

This amends the Tenant Fees Act 2019 so that rent in advance payable before the tenancy is entered into is a “prohibited payment” for the purposes of that Act. The new section 5A then also adds new prohibitions relating to that kind of prohibited payment.

Brought up, and read the First time.

Question put, That the clause be read a Second time.