Rent in advance ban risks excluding vulnerable tenants
1 year ago | 11 comments
Government defends ban on rent in advance in Renters’ Rights Act
8:33 AM, 11th December 2025, 5 months ago
28
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The government have hit back at claims banning rent in advance will lock tenants out of the market.
In the Renters’ Rights Act guide, the government claim large amounts of rent can be “a significant barrier to renting”.
Under the Renters’ Rights Act, landlords and agents will no longer be allowed to accept large amounts of rent in advance, despite warnings from industry experts it could risk excluding vulnerable tenants from the market.
Banning rent in advance will protect tenants
In the Renters’ Rights Act guide, the FAQs section asks whether banning rent in advance could lock some tenants out of the market, for example, those with poor credit histories.
The government disagrees and says the measure is designed to protect tenants.
The guide says: “Requirements for large amounts of rent in advance can be a significant barrier to starting to rent or moving into a new rented home.
“While some tenants can use rent in advance to their advantage, we believe that by prohibiting rental bidding and requests for large upfront payments, we will protect more tenants from situations where they are pitted against one another and face undue costs.
“We are clear that landlords should consider a tenant’s individual circumstances when negotiating rental conditions.”
However, as previously reported on Property118, Propertymark has warned that banning rent in advance could have unintended consequences, particularly for students.
ARLA Propertymark regional executive for Cornwall, Sophie Lang, said: “A lot of the time, when we ask for rent in advance, it’s at the tenant’s request. It’s not necessarily the landlord, unless it’s international students who don’t have a UK-based guarantor.
“This is a tenant-led option that helps them manage their finances. Banning it makes no sense.
“It will limit students’ access to affordable housing, and at a time when we’re trying to encourage more young people into higher education, it could reduce access, especially for the most vulnerable. You’ll end up with only the wealthiest being able to go to university.”
Tenants will remain free to pay prior to the rent due date
As previously reported on Property118, landlords can only accept rent in advance in certain circumstances, such as when the property is let by the council to a tenant who is legally homeless.
Landlords could face fines of up to £7,000 if they request rent in advance, as councils will have the power to take action against those who ask for payments before a tenancy agreement has been signed.
However, the government has confirmed that landlords should consider a tenant’s individual circumstances, and tenants will still be able to pay rent in advance if they choose to.
The guidance says: “While landlords will be restricted from including terms in a tenancy agreement which require rent to be due in advance of the rent period to which the rent relates, tenants will remain free to pay prior to the rent due date should they wish to do so.
“This maintains flexibility for tenants to manage their tenancies in the way that best suits them. A landlord will not be able to require a tenant to pay their rent before it is due.”
Tags:
government housing policy, rent in advance, Rental market, Renters’ Rights Act, tenant protection
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Member Since January 2023 - Comments: 27
7:52 PM, 11th December 2025, About 5 months ago
Reply to the comment left by Kate Gould at 11/12/2025 – 10:41
Surely not. The landlord did not insist on payments in advance.
Member Since February 2025 - Comments: 70
9:10 PM, 11th December 2025, About 5 months ago
Maybe the guidance is referring to the tenant choosing to make (and landlord being allowed to accept) early payments of rent after the tenancy has started.
This is what the Act says for the criminal offence, only in relation to pre-tenancy payments
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.
… and repeated to prevent avoidance by payment to a third party and extend the offence to letting agents.
Member Since May 2014 - Comments: 88
8:09 AM, 12th December 2025, About 5 months ago
Just over a year ago I let an apartment to a really nice professional South African couple. They’d just moved to the UK and were self employed, they had no UK credit history and no guarantor. They happily paid 12 months up front and now pay monthly.
Under the new regs I’d not have taken them on. Too risky. [I’ve been caught before with Chinese students who disappeared home mid-tenancy, never to be seen again.]
How do the new rules help people like my South African tenants??
Member Since February 2023 - Comments: 39
10:32 AM, 12th December 2025, About 5 months ago
Would it be legal to have the tenant use a credit/debit card pre-authorisation instead. Basically a hold on the amount to pay out 1 day after the contract starts. This would be similar to a hotel.
Member Since February 2025 - Comments: 70
11:43 AM, 12th December 2025, About 5 months ago
The tenant would be free to cancel any pre-authorisation of advance rent arranged before start of the tenancy, as it would be a term of the tenancy (even if not written within the tenancy agreement) that falls foul of section 8 (new s.4B of Housing Act 1988). And there is also the risk that the pre-authorisation is a payment on the date it is made, rather than the date on which the money passes, and therefore a criminal offence by the landlord, especially if the pre-authorisation is non-revocable.
Member Since October 2022 - Comments: 207
1:34 PM, 12th December 2025, About 5 months ago
Reply to the comment left by Reluctant Landlord at 11/12/2025 – 11:55
It wouldn’t surprise me if certain movers and shakers in govt are invested in rent guarantee companies, I suspect it will soon be a booming industry making money out of all the poor tenants who don’t qualify for a tenancy under the very strict rules that are now being imposed. Whereas currently it is cost neutral as no fee would have been charged by the landlord for this informal type of rent guarantee. All part of “professionalising” the sector, I.e. making it much more rigid and inflating costs.
Alternatively, they may try to command landlords to treat every applicant equally and take tenants on regardless of the risk. Whereupon landlords will be forced to take out RGI and build it into the rent for everybody.
Member Since February 2025 - Comments: 70
5:21 PM, 12th December 2025, About 5 months ago
A landlord relying on a rent guarantee needs to be careful to understand the mechanics of the rent guarantee and ensure it doesn’t involve the tenant paying the rent in advance to the guarantor, so as not to commit one of these criminal offences:
(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.
Member Since January 2023 - Comments: 27
5:25 PM, 12th December 2025, About 5 months ago
Reply to the comment left by Neil P at 12/12/2025 – 08:09
They clearly do not, Neil.
Member Since January 2025 - Comments: 14
6:16 PM, 12th December 2025, About 5 months ago
Reply to the comment left by Neil P at 12/12/2025 – 08:09
Agreed.. there are tenants that are unable to secure a tenancy due to poor credit, insufficient proof of income, new to the Country.
Without the option for them to pay the tenancy upfront, would mean they would fail the referencing criteria and be refused the property. My experience is many prospective tenants offer this, as it’s their best option. Their choice.
Just another stupid response from the Government, aimed at the private rental market, are they not blind this will create more homelessness.
I’m convinced this Government wants to drive out private rentals.. certainly doing a good job!
Member Since September 2021 - Comments: 104
7:32 AM, 13th December 2025, About 5 months ago
Fortunately there is an easy workaround folks, to this stupid rule!
What I suggest is that you (the Landlord) and the Tennant(s) agree a thrid party holds the large deposit/rent in advance. This is known as an Escrow service, and they are a 3rd party that hold that money with conditions that it is released when certain conditions are met, e.g. rent due dates, etc.
I think we really need to start to “out think” this Govenment and their stupid rules, such as in this example. Hopefully we will find many other ways around them, such as forming trusts or SPV’s (Special Purpose Vehicle), A Holding company etc.
Maybe if we all make an effort we can collectively figure out work arounds and share these ideas, we can survive this shower of idiots!
Otherwise vote Advance UK. They are now an official political party!
Or The Reform Party if you think NF will bring home the goods. (I’m not too sure he will)!