9 must-know facts about banning rent in advance payments

Rent in advance payments have served many purposes – many beneficial – but they are about to end. One of the key reforms in the Renter’s Rights Act bans large rent in advance payments and thousands of landlords, and tenants, will be affected.

Landlords often seek large upfront rent payments when they’re willing to accept tenants perceived as a risk. These could be renters with no or poor credit histories, workers in probationary periods, contractors and the self-employed, people in receipt of benefits, first-time renters and students. Rent paid in advance is money in the bank to meet mortgage repayments and removes any worry about rent arrears.

For some tenants, rent in advance works to their favour too. As outlined above, not every renter will pass referencing or tick every affordability box but paying rent up front proves their financial security and unlocks property doors that would otherwise remain closed.

The Government, however, feels those who can’t pay rent in advance are at a distinct disadvantage, especially the most vulnerable tenants, so it is banning rent in advance payments to create a fairer rental market. 

These are legislative take-aways for both landlords and tenants: 

1. There is a strict date when rent in advance is banned: landlords will be banned from taking large rent in advance payments from 1st May 2026. There is no ‘phasing in’ of this reform. 

2. Landlords can still request one upfront rent payment: the ban prohibits large upfront rent payments but landlords can still take one month’s rent in advance (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. 

3. Security deposits remain unchanged: landlords can continue to 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 more than £50,000.

4. Tenants can still make early rent payments: while a landlord will be banned from demanding rent in advance after a contract is signed but before the tenancy commences, tenants will retain the ability to voluntarily pay their rent early during the tenancy. The Government’s exacting wording is: ‘tenants will remain free to pay prior to the rent due date should they wish to do so.’ 

5. There are new penalties for any breaches: landlords who take unlawful rent in advance payments after 1st May 2026 can be made to pay the sum back to the tenant, or they may face a fine of up to £5,000 per breach.

6. Landlords can change ‘rent due’ dates: there’s nothing stopping a landlord from changing the date that the rent is due. A revised date may help a tenant make rent payments, such as moving a standing order to the day after pay day. 

7. Guarantors may become the norm: a guarantor is someone who, by law, steps in and pays the rent when a tenant can’t. This can be a tenant’s close family member or friend. We foresee more landlords requesting guarantors and more tenants offering guarantors after 1st May 2026.

8. Insurance can fill the gap: landlords can reduce the risk of arrears by taking out a dedicated rent guarantee insurance product. Such a policy would cover the rent if a tenant defaults. 

9. No change for Scottish and Welsh landlords: the majority of the Renters’ Rights Act doesn’t apply in Scotland and Wales and that includes the ban on rent in advance. Landlords in Scotland can continue to request up to six months’ worth of rent in advance. There is no upper cap on how much rent in advance Welsh landlords can ask for.

If you are still unclear about the ban of rent in advance or are struggling with other aspects of the Renters’ Rights Act, contact us for clarity and practical advice.