Landlords: check if you are affected by the rent in advance ban

Unless you have been living under a rock, you’ll know the first – and most impactful – part of the Renters’ Rights Act will be enforced in England on 1st May 2026. One reform landlords may find challenging is the ban on rent in advance. In this blog, we’ll look at the ban in detail, explain who it might affect and suggest some alternatives for landlords to consider.

Unfair or an advantage?

A landlord’s ability to request rent in advance is viewed by some as a benefit exclusively enjoyed by tenants with large amounts of disposable income. Those who can pay upfront often edge out tenants without access to savings - usually the most disadvantaged.

Conversely, rent in advance payments can actually help tenants as the money creates a financial cushion for landlords worried about a tenant’s ability to pay future rent. A tenant may offer to pay in advance if they have a poor credit history, is in a probationary period at work, receives benefits, is self-employed, is an international student, can’t provide a guarantor or has no rental history.

The rent in advance ban explained

The Government, however, feels requesting rent in advance excludes too many people from the rental market. As such:

• Landlords will be banned from requesting a large, upfront rent payment to secure a property from 1st May 2026.

•  The Housing Act 1988 will also be amended to stop landlords from enforcing any ‘terms in a tenancy agreement that require rent to be paid in advance of the agreed due date’.  

• Tenants will retain the right to make voluntary early rent payments during their tenancy (perhaps if they have received a bonus at work or have inherited some money), as long as they, not the landlord, initiates the idea.  

•  Local councils will gain new enforcement powers to punish landlords who have taken unlawful rent in advance payments. Landlords can be made to pay back the money and/or they could be fined up to £5,000 per breach.

Will the ban affect landlords in Scotland and Wales?

Rent in advance is regulated in Scotland and landlords cannot charge more than 6 months' rent in advance. This will not be affected by the Renters’ Rights Act. There will be no limit on rent in advance in Wales, even after 1st May 2026. 

Permissible upfront payments from 1st May 2026

Landlords will retain a degree of financial protection after the ban by retaining the right to:

• Request one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) after a tenancy agreement has been signed but before it starts. 

• Request a security deposit equal to 5 weeks’ rent if the annual rent is less than £50,000 or 6 weeks’ rent if the annual rent is in excess of £50,000.

Alternatives to rent in advance payments

There are a number of other ways to reduce risk and gain financial security after 1st May 2026. These include:

• Guarantors: insisting on a guarantor who is legally obliged to pay the rent if the tenant can’t

• Rent guarantee insurance: an insurance policy that will pay the rent if the tenant defaults

• Top-level referencing: choosing the most stringent referencing and credit checks for affordability reassurance

• Flexible rent collection: agreeing a date or schedule that aligns with when the tenant is paid

The ban on rent in advance will shift focus towards meticulous referencing and guarantors. If you would like to know more about how we select tenants to reduce the risk of rent arrears, please get in touch.