Upfront rental payments ban: advice for landlords

The majority of the Renters’ Rights Act will take effect in England on 1st May 2026. From that date, landlords will be banned from taking large, rent in advance payments from tenants – a reform that carries consequences for both landlords and tenants.

The ban on large, upfront rent payments may apply to landlords who:

• Take on first-time renters who have no previous landlord references

• Consider tenants with no credit history or a poor credit score

• Want to accept an offer from a tenant in a new job with a probationary period

• Welcome tenants in receipt of benefits

• Have a self-employed or contractor applicant

• Who run student lets, especially those aimed at international students

• Have a tenant who can’t provide a guarantor

Requesting a large, upfront payment from tenants has been a way for landlords to mitigate the risk of arrears, giving them confidence to accept marginalised tenants with a less than perfect set of circumstances. 

Making a large, upfront rent payment has also been an advantage for tenants who need to secure a property in a competitive market, particularly those who may not score well in the referencing process. In fact, Goodlord’s State of the Lettings Industry Report 2025 found 1 in 5 renters used rent in advance to secure a place to live because they couldn’t provide a guarantor. 

Explaining the rent in advance ban

The Government’s legislation states: ‘a landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) once a tenancy agreement has been signed and before commencement.’

Any clauses in tenancy agreements, signed or unsigned, that specify mandatory upfront rent will be null and void from 1st May 2026. Tenants will, however, retain the right to instigate a voluntary, early rent payment during their tenancy.

What about Welsh and Scottish landlords?

The ban on rent in advance does not affect landlords in Scotland and Wales. In Scotland, landlords will retain the right to request up to six months’ worth of rent in advance. In Wales, there is no upper limit on how much rent in advance can be requested and this will remain unchanged. 

Penalties for breaching the rent in advance ban

The Renters’ Rights Act will hand local councils more enforcement powers to pursue complaints about illegal practices. Landlords who flout the ban could be made to repay any upfront payments to the tenant, and they may be fined up to £5,000 per breach.

What upfront payments can landlords still take?

From 1st May 2026, landlords will be permitted to take:

• one month's rent in advance only

• a security deposit to the value of 5 weeks’ rent if the annual rent is less than £50,000 or 6 weeks’ rent if the annual rent is more than £50,000.

6 upfront payment alternatives

1. Using the highest level of tenant referencing to ensure financial security

2. Insisting on proof of income, together with an employer reference

3. Requiring a guarantor for those who have weak references or poor credit histories

4. Taking out a rent guarantee insurance policy

5. Considering bi-weekly or weekly rent payments

6. Adjusting the date when the rent is due to accommodate a tenant’s income source

If you would like help adjusting to the incoming Renters’ Rights Act, please get in touch with our lettings team.