Member

I turn finally to the amendments tabled by my noble friend Lord Hacking—and thank him for his kind invitation to tea in his kitchen. Amendment 115 would remove the measure prohibiting payments of rent before a tenancy agreement has been signed. In effect, it would allow landlords and agents to require or accept payment of any amount of rent at any point before the tenancy had been agreed by all parties. The problem is not that the landlord would run away with the money but that, for the reasons I have already outlined, if we were to allow such payments prior to a tenancy—as my noble friend’s amendment seeks—there would be consequences. Tenants facing stiff competition for properties could find themselves under pressure to pay more than one month’s rent in advance as a way of bidding to secure a tenancy. Instead, we think that the right balance is to allow landlords to require a holding deposit and a tenancy deposit before they agree the tenancy. By enabling them to require payment of the first month’s rent at any point between the contract signing and handing over the keys for moving-in day, all sides can proceed with confidence.