Advance Rent Payments Banned under The Renters’ Rights Act 2025
Under the Renters’ Rights Act, landlords and letting agents can no longer invite, encourage or accept rent payments from a tenant before a tenancy agreement has been entered into. For tenancies entered into on or after 1 May 2026, any clause within a tenancy agreement that requires rent to be paid in advance is unenforceable, except as explained below.
Once the tenancy agreement is signed, and before the tenant moves in, a landlord can invite and accept a maximum of one calendar month’s rent in advance.
Enforcement and Penalties
Any payment of rent before the tenancy agreement has been entered into is a prohibited payment under the Tenant Fees Act 2019. Breaches could result in enforcement action and financial penalties.
How to stay compliant
Landlords and letting agents should carry out robust affordability and referencing checks on all prospective tenants as part of the pre-tenancy process. In addition, landlords who previously chose not to take a security deposit should do so.
By following these steps, landlords and agents can protect themselves from enforcement action.