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
Categories:
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
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Related Articles
Rent in advance and last month’s rent?
6 months ago | 4 comments
Government sets rules on deposits and rent-in-advance for landlords in Renters’ Rights Act
5 months ago | 14 comments
Member Since February 2025 - Comments: 70
9:13 AM, 13th December 2025, About 5 months ago
Reply to the comment left by Frankly at 13/12/2025 – 07:32
See my comments above about the offences that a landlord (or their letting agents) may commit if a tenant obtains a rent guarantee by passing the rent in advance to the guarantor.
Member Since September 2021 - Comments: 104
12:18 PM, 13th December 2025, About 5 months ago
Reply to the comment left by Kate Gould at 13/12/2025 – 09:13
Using an Escrow service is NOT rent in advance, its NOT rent to an Estate agent or manager either.
Its a legally agreed contract between two parties where funds are withheld, just like a bank, until certain agreed conditions are met.
When those conditions are met, the agreed funds (or part there of) is released as agreed in the contract. Its a completely seperate agreement/contract that has nothing to do with rent being paid in advance.
Clearly its not paid to the landlord at all, or his property manager.
I think someone with legal expertise needs to check this out further, as its clearly a grey area and needs clarification.
Can anybody that has legal knowledge on this, please advise?
Member Since January 2023 - Comments: 27
1:29 PM, 13th December 2025, About 5 months ago
Reply to the comment left by Frankly at 13/12/2025 – 07:32
No, the legislation prevents the use of third-parties to try to circumvent the legislation.
Member Since September 2021 - Comments: 104
1:47 PM, 13th December 2025, About 5 months ago
Reply to the comment left by John Porcella at 13/12/2025 – 13:29
Well that’s just Fine and Dandy then, isn’t it!
Oh well! I’ll just have to sell up as we move along, or have rent insurance do the vetting.
I feel sorry for the tennants though. I had dozens phone me asking if I took pets, or DHSS, and the answer was YES of course!
However when I asked if they had any outstanding rent arrears, CCJ’s, outstanding debts, unpaid CCJ’s or have ever owed money to a landlord or been in rent arrears, the numbers dwindled down to one, quite quickly. Thankfully the credit check worked out fine eventually, with gaurrentors and rent insurance happy, contract signed and they have now rented the property. They have also been given the option to buy, so that’s in progress now too!
My Family moto is.. “To a willing man, nothing is difficult”.
One more rental property off the market. Phew! I see there are lots more tents being put up in parks lately. Makes me wonder where its all going to end? And when?
2TS has a lot to answer for, and so does RR.
Lets hope they are out and some common sence gets into no. 10 before its too late.
Member Since February 2022 - Comments: 71
11:43 AM, 14th December 2025, About 5 months ago
I think the answer is going to be coming up with some other service, outside of the tenancy, separately documented, that stays alive while the tenancy stays alive. Almost like a derivative. There will be cash flows associated with it that will be paid in advance, and rebates etc..
Member Since September 2021 - Comments: 104
12:25 PM, 14th December 2025, About 5 months ago
Reply to the comment left by Christopher Lee at 14/12/2025 – 11:43
Looks like many landlords and tennants will be dealing with cash and gold and silver coins in the future, and no records of rents paid.
I wonder if someone can gift a car to a landlord, with no tax to HMRC involved?
We may end up having to barter with commodity goods in the future.
Happy days!
Member Since February 2023 - Comments: 39
8:27 PM, 15th December 2025, About 5 months ago
Reply to the comment left by Kate Gould at 13/12/2025 – 09:13
Could another option be to issue a short let contract for 180 days (just short of 6 months). Pay the term in one go.
Issue an AST afterwards.
Member Since February 2025 - Comments: 70
11:56 AM, 16th December 2025, About 4 months ago
Reply to the comment left by N N at 15/12/2025 – 20:27
The Renters Rights Act changes will apply to assured tenancies (and the subset of assured shorthold tenancies will be abolished).
I don’t think there’s any rule that says it’s not an assured tenancy if it’s for less than 6 months.
The tenancies that are excluded from being assured tenancies are listed in Part 1 Schedule 1 to Housing Act 1988, and also tenancies to companies (s.1(1)(a) Housing Act 1988) or individuals who are not using it as their principal home (s.1(1)(b)).
A tenancy at zero rent is not an assured tenancy (Housing Act 1988 Schedule 1 para 3). Charging a premium for the grant of a fixed term at zero rent, so that the tenancy is not an assured tenancy and not subject to the criminal offence of taking more than one month’s rent before the start of the tenancy, seems like a too- good-to-be-true loophole.
Para 3 excludes from being an assured tenancy “A tenancy under which for the time being no rent is payable” which even seems to allow for a tenancy agreement for a fixed term to be granted at a premium and no rent and then rent to start to be payable from the end of the fixed term (and the tenancy would become an assured tenancy only at that point).
Tenant Fees Act 2019 only applies to assured tenancies.
HMRC has rules about when money received as a premium is taxed as income or as capital.
Reading through the Property118 discussion on premium tenancies from 2012, Tessa Shepperson et al were focusing on when an advance rent payment would be treated as a deposit. There were references to the dangers of advance rent being treated as a premium, including the implied term in s.15 Housing Act 1988 (but that is only implied into assured tenancies). This new situation is different.
The risks of getting this wrong are huge, and I’m not suggesting anyone should try it without paid legal advice. Maybe someone should pay a barrister to give an opinion?