5 months ago | 28 comments
The government has published guidance for councils on when it is illegal for a landlord or letting agent to ask for rent in advance.
Under the Renters’ Rights Act, landlords and agents can no longer accept large amounts of rent in advance.
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.
In the guidance, the government says local authorities can take enforcement action and issue a civil penalty against a landlord or letting agent if the breach was committed with their consent or knowledge, or due to their neglect.
Under the Renters’ Rights Act, councils have the power to carry out surprise inspections, including entering premises where tenancy records are kept.
Councils say if a tenant has reported a landlord or agent for asking, inviting or encouraging them to pay rent in advance, they should provide:
When defending themselves, landlords or anyone acting on their behalf should provide all relevant documentation, including:
The government has also published a series of example breaches showing how landlords could fall foul of the new rules.
In the first example, the government outlines a situation where a landlord requires rent to be paid before the tenancy has officially been entered into.
The guidance says: “A tenant has viewed a property and would like to proceed with the tenancy. On payment of the tenant’s holding deposit, the landlord asks them to pay the first month’s rent and tenancy deposit at the same time as the tenant signs the tenancy. The landlord and tenant agree that the landlord will sign the tenancy once the tenant’s funds have cleared into the landlord’s account.
“This would be a breach of the rules on rent in advance as the landlord has required the tenant to pay rent before the tenancy has been entered into by both parties.”
The government also provided an example involving a landlord accepting an offer of rent in advance before the tenancy agreement is signed.
The guidance explains: “A tenant has viewed a property and would like to proceed with the tenancy. As the tenant wants to move quickly, they offer to pay six months’ rent in advance now to secure the property and enter into a contract. The landlord accepts this offer and once the payment of rent is received arranges for both parties to sign the tenancy agreement and for the tenant to move in.
“This would be a breach of the rules on rent in advance as the landlord has accepted an offer of rent before the tenancy is entered into.”
Another example covers landlords demanding rent earlier than the agreed payment date during an active tenancy.
The guidance says: “During a tenancy, a landlord requires the tenant to pay the rent before the day it is due and points to clauses in the tenancy agreement that allow this.
“This would be a breach as the landlord cannot require payment of rent before the payment date agreed in the tenancy agreement. Clauses of the tenancy agreement that allow the landlord to ask for payment early are of no effect and the tenant does not need to comply with this requirement.”
The government has also provided examples of scenarios that would not be considered breaches of the rules.
One example involves a local housing authority paying rent in advance as part of its homelessness duties.
The government explains: “A local housing authority agrees with the landlord to pay rent in advance, to let to someone who is subject to a homelessness duty. They agree to pay two months’ rent in advance before the person signs the tenancy agreement and to pay an additional lump sum of rent every six months. The landlord accepts this and adds this to the tenancy agreement.
“This is not a breach of the rules on rent in advance. First, a local authority is not a ‘relevant person’ under the Tenant Fees Act 2019 and can make payments of rent before the tenancy agreement is signed. Second, this tenancy was agreed to meet the local authority’s homelessness duty. This type of tenancy is exempt from the rules on rent in advance once a tenancy has started, so the landlord can require the agreed regular lump sum every six months.”
The government also outlined an example where a tenant voluntarily offers to pay rent before it is due.
The guidance says: “During a tenancy, the tenant offers to pay the landlord the next two months’ rent in advance. The landlord agrees to this and accepts the payment.
“This would not be a breach as the tenant is free to pay rent before it is due, and a landlord can accept this.”
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Member Since May 2018 - Comments: 2059
1:26 PM, 12th May 2026, About 1 day ago
Reply to the comment left by Markella Mikkelsen at 12:19
There is a new web page on this on gov.uk and it says that a landlord cannot ACCEPT more than one months payment of rent in advance:
https://housinghub.campaign.gov.uk/renting-is-changing/
I..e even if the tenant OFFERS it, the landlord cannot ACCEPT it.
Requiring large amounts of rent in advance has been banned. The relevant bit on this link says:
– you can only require up to one months rent in the period between all parties signing the tenancy and the tenancy starting
– you cannot ACCEPT any payment of rent before this period
– once the tenancys begun, you cannot REQUIRE any payment of rent before it is due
So that new bit of information answers one of my questions: Once the tenancy has BEGUN the tenant may make payment of rent in advance, you just cannot REQUIRE them to do it.
The section below this is entitled Removing Barriers to Renting but this new requirement will be a barrier to tenants who have cash but low income and cannot pass credit referencing, e.g. some retired people.
Member Since May 2018 - Comments: 2059
1:37 PM, 12th May 2026, About 1 day ago
Reply to the comment left by Beaver at 12/05/2026 – 13:26
PS: The guidance on gov.uk says:
Rental bidding has been banned:
you must include a specific price on any written property advertisement
you aren’t allowed to ask for, encourage, or accept an offer that’s higher
So what that means is that IF you advertise a property you have to include a price.
What this means in turn is that you will have to advertise the price of any new let at the highest possible price, i.e. as a consequence of the Renters Rights Act either you or your agent have to maximise rents.
Under the Removing Barriers to Renting section in the new guidance on gov.uk it says:
Discrimination against renters who have children or receive benefits is now illegal:
you cannot do anything to make a tenant less likely to rent a property (or prevent them from renting it) because they have children or receive benefits
this includes withholding information about a property (including its availability), preventing them from viewing it, or refusing to grant a tenancy
And again, what this means in turn is that in order to avoid discrimination, IF you advertise, either you or your agent will have to subject all tenants to credit-referencing.
It looks as though if you weren’t advertising your property but relying on an agent then if your agent withheld information about the availability of your property they could be breaching the new guidance, although whether that would breach the letter of the law, i.e. the wording of the act itself, I don’t know. Anybody know?
Member Since June 2018 - Comments: 24
4:20 PM, 12th May 2026, About 1 day ago
Reply to the comment left by Markella Mikkelsen at 12/05/2026 – 12:19
“It’s a very fine line and open to fines.” Nice one Markella!
Member Since May 2018 - Comments: 2059
5:02 PM, 12th May 2026, About 1 day ago
Reply to the comment left by Richard Dean at 12/05/2026 – 16:20
It is a fine line because some of the legislation as drafted was ambiguous. For example, the last time I read it (on this site) I do remember the wording of the legislation saying that you would not be able to take more than the advertised rent. But I don’t remember a bit of the primary legislation that specifically said you HAD to include the amount of rent in an advert; i.e. I don’t remember the primary legislation specifically saying that if you were advertising a three-bed semi in an approximate location you had to include the price.
Anyone know whether that’s in the primary legislation itself?
Whether it is in the primary legislation or not the new government guidance at the link above says that any advert MUST include a price.
And the guidance says that you can’t discriminate against renters on benefits or renters with children.
So reflecting on the government guidance on the Renters Rights Act, the bottom line is:
(1) IF you are advertising, on first advertising a property either you or your agent need to advertise as high as you can.
(2) In order not to discriminate against ANYBODY, either you or your agent need to be applying stringent credit-referencing checks for EVERYBODY.
So, if previously you were advertising a three bed semi for £3,000 PCM you’d be better off now advertising it at first letting for £3,500 PCM providing contact details and making it clear that there will be credit-referencing checks; if only one tenant then offers you £3,300 PCM and can pass the credit-referencing checks you take that tenant in preference to the other 10 applying for the property (the other 10-20 having dropped out because they know they will fail the credit-referencing checks).
The Renters Rights Act is a gift for agents. I actually use one and I intend to keep using one because using an agent will help screen out the least desirable tenants.
PS: You can’t discriminate against tenants on the basis of whether they have children or not, but in my experience, children do far more damage to a rental property than pets. Because you can’t discriminate against them and you are probably going to experience more damage and more expense you probably want to have a second look at market rent and if market rent could be £3,600 rather than £3,500 PCM for that advertisement on first letting, that’s where you need to be.
Member Since September 2018 - Comments: 3571 - Articles: 5
6:10 PM, 12th May 2026, About 1 day ago
Reply to the comment left by Beaver at 12/05/2026 – 11:46
the devil is in the detail. This wording assumes the tenancy is already in place. ie Tenant started in May 2026 and after the first month rent is paid in June the tenant says he wants to pay 6 months ahead. The landlord can accept as the tenant made the offer.
Member Since June 2018 - Comments: 24
11:16 PM, 12th May 2026, About 22 hours ago
Reply to the comment left by Steve Rose at 12/05/2026 – 12:34
Handing over a valuable asset without being permitted to check that payment has been received goes against millennia of business practice, and surely won’t survive a court challenge.
Member Since January 2023 - Comments: 147
7:25 AM, 13th May 2026, About 14 hours ago
this is a mash up. Rent cant be accepted until both parties have signed but lamdlord can refuse to provide keys until tenant pays. theyve got this all wrong. if both parties have signed but then the tenanrs dont pay the move in money does the landlord have to go to court to end the tenancy on the grounds of nonnpayment of rent? half baked concept poorly conceived
Member Since July 2013 - Comments: 2011 - Articles: 21
10:30 AM, 13th May 2026, About 11 hours ago
Reply to the comment left by Contango at 07:25
It is yet to be tested in court but it should be possible to cater for this. It will mean having a delay of at least a day between signing the tenancy and the tenant being given access. The tenancy can provide that the tenant must pay the first instalment of rent before moving in and that if the tenant fails to do so, the landlord may refuse to allow access and may cancel the contract forthwith.
This is clunky and a completely unnecessary obstacle. It wasn’t in the Tories’ Bill but was added by Labour. I suspect it has been designed to catch out a lot of landlords who will continue the normal, prudent business practice of getting money upfront.
Member Since May 2018 - Comments: 2059
10:47 AM, 13th May 2026, About 10 hours ago
Reply to the comment left by Ian Narbeth at 13/05/2026 – 10:30
There’s a link about this here:
https://www.gov.uk/assured-tenancy-agreements-a-guide-for-landlords/rent-in-advance-and-deposits
The gov.uk guidance says:
Rent in advance and deposits
You or your letting agent must not accept, ask for or encourage tenants to pay rent before you both sign the tenancy agreement. This is called asking for ‘rent in advance’.
Your tenant can make a complaint if they are asked to pay rent in advance.
You can only ask for rent in advance during the ‘pre-tenancy period’. This is after you and your tenant have signed the tenancy agreement and before the date the tenancy starts. You can usually only ask for either one month or 28 days’ worth of rent before the tenancy starts.
So basically you should sign but make it clear that the keys won’t be handed over until the money has cleared and ask for either one month or 28 days worth of rent before the tenancy starts: No rent cleared in your bank account or your agent’s bank account = no keys handed over.
Member Since September 2024 - Comments: 104
11:39 AM, 13th May 2026, About 10 hours ago
Reply to the comment left by Beaver at 13/05/2026 – 10:47
Once the lease has been signed, you can’t withhold the keys, or prevent access, for non-payment of the first rent.