RENT IN ADVANCE CAPPED
Landlords will no longer be permitted to request more than one month’s rent in advance, regardless of tenant preference or mutual agreement.
This restriction forms part of wider reforms aimed at reducing financial barriers for renters and promoting affordability across the sector.
While advance rent payments were sometimes used to offset risk or secure longer-term commitment, this practice disproportionately impacted lower-income tenants and created inconsistencies in how upfront costs were applied.
Under the Renters Rights Bill, a strict cap has been introduced: landlords can only request one month’s rent in advance, with tenancy deposits capped at five weeks’ rent (or six weeks if annual rent exceeds £100,000). Requests for multiple months upfront such as six months’ rent in advance will now be unlawful, even if the tenant offers or agrees voluntarily.
Additionally, all payment requests must be clearly itemised, fair, and compliant, including deposit amounts, rent due, and any other permitted fees.
This shift is designed to promote transparency, affordability, and equality of access, ensuring that no tenant is priced out of a tenancy due to excessive upfront demands. It will require landlords to rethink pre-tenancy financial arrangements and update their documentation and processes accordingly.
Any breach of the rent-in-advance rule could result in enforcement action, tenant challenges, or fines, particularly if payment terms are found to be ambiguous or in breach of the new caps. Pre-tenancy documents, including holding deposit agreements, tenancy agreements, and onboarding templates must be thoroughly reviewed and updated to reflect the new legal position.
We provide tailored support to ensure your tenancy setup, payment requests, and documentation are fully compliant - protecting you from penalties and helping to maintain fair and lawful letting practices.
In Summary:
- Landlords can only request one month’s rent in advance - no more.
- Deposits remain capped at five weeks’ rent (or six weeks over £100k/year).
- Even voluntary offers of additional rent must be refused.
- All payment requests must be transparent, itemised, and compliant.
- Pre-tenancy processes and agreements must be updated accordingly.
- Breaches may lead to fines or tenant challenges.
Renters Rights Ready is a dedicated lettings consultancy helping landlords and agents navigate the ever-evolving landscape of UK lettings legislation.
With over a decade of hands-on experience across both independent and corporate lettings agencies, we specialise in the practical side of compliance, from reissuing tenancy agreements and drafting Section 13 notices, to delivering full audits of property portfolios.
We work with landlords and agents of all sizes, from individual owners to multi-property investors, independent offices to multi-branch corporates, offering clear, tailored guidance that’s grounded in real-world lettings operations, not legal theory.
Our mission is simple:
To keep landlords and agents compliant, confident, and focused on what they do best, while we handle the paperwork.
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