Limits on Upfront Rent Payments

From 1 May 2026, landlords can request a maximum of one month's rent in advance. This is in addition to the tenancy deposit (capped at 5 weeks' rent under the Tenant Fees Act). You can no longer ask for 3, 6, or 12 months upfront, regardless of the tenant's circumstances.

Currently, there is no statutory limit on advance rent. Many landlords request multiple months upfront, particularly from tenants who may not pass traditional referencing — such as international tenants, self-employed individuals, or those with limited credit history.

The Renters' Rights Act 2025 introduces a hard cap:

• Maximum one month's rent can be requested in advance
• This applies to rent demanded at or before the start of the tenancy
• The deposit cap under the Tenant Fees Act remains unchanged (5 weeks' rent for annual rent under £50,000, 6 weeks for £50,000 or more)
• Combined, the maximum upfront payment becomes: 1 month's rent + 5 weeks' deposit

Worked example (for a property at £1,500/month):

• Maximum advance rent: £1,500
• Maximum deposit: £1,731 (5 weeks at £346.15/week)
• Total maximum upfront: £3,231

• No more risk offsetting with upfront rent: If a tenant has a weak credit history or limited references, you can no longer mitigate the risk by asking for several months upfront.
• Guarantors become more important: For tenants who don't pass standard referencing, a suitable guarantor is now the primary alternative safeguard.
• Rent guarantee insurance: Consider taking out rent guarantee insurance as an alternative protection against non-payment, especially for higher-risk tenancies.
• International tenants: Landlords who previously relied on 6+ months' advance rent for overseas tenants will need to use guarantors, employer references, or specialist referencing services instead.
• Excess payments are recoverable: If you charge more than one month's advance rent, the tenant can recover the excess and you may face enforcement action.

• 1 May 2026: Advance rent cap comes into force
• Applies to: All tenancies granted on or after 1 May 2026
• Penalties: Up to £7,000 for initial breaches, up to £40,000 for serious or repeated breaches

Q: A tenant offers to pay 6 months upfront voluntarily. Can I accept?

A: No. The cap applies regardless of whether the tenant offers voluntarily. You must not request, encourage, or accept more than one month's rent in advance.

Q: Does this affect existing tenancies where rent was paid in advance?

A: The cap applies to tenancies granted from 1 May 2026 onwards. If a tenant already paid advance rent before this date under an existing tenancy, that arrangement continues — but you cannot request further advance rent beyond one month at the next renewal or new tenancy.

Q: What about a holding deposit?

A: The holding deposit (capped at one week's rent under the Tenant Fees Act) is separate from advance rent and remains unaffected.

Q: How do I protect myself from non-payment without advance rent?

A: Use thorough referencing, require a suitable guarantor where appropriate, consider rent guarantee insurance, and ensure your tenancy agreement is comprehensive. Your agent can advise on the best combination of protections.

• Stop requesting more than one month's advance rent for any new tenancy from 1 May 2026
• Review your approach to tenants who wouldn't pass standard referencing — guarantors and rent insurance are now the primary alternatives
• Update any marketing materials or application forms that reference advance rent requirements
• Consider rent guarantee insurance for your portfolio
• Brief anyone involved in lettings on the new cap
• Talk to your agent about their approach to securing tenancies within the new limits