Renters’ Rights Act: What the 2026 Rent in Advance Ban Means for Landlords

The countdown to 1st May 2026 has begun. On this date, the first—and perhaps most disruptive—phase of the Renters’ Rights Act 2024 will come into force across England. While much of the media focus has remained on the abolition of "no-fault" evictions, a quieter reform is causing concern for many: the official ban on requesting significant rent in advance.

In this guide, we detail the specifics of the ban, who it will affect most, and the legal strategies landlords can use to maintain financial security.

The End of the "Financial Cushion"

For years, landlords have used rent in advance to mitigate risk. Requesting six or even twelve months of rent upfront has been a common way to approve tenants who might otherwise fail traditional affordability checks—such as international students, the self-employed, or those with thin credit files.

The Government argues that this practice creates a two-tier system, effectively "pricing out" those without significant savings. Under the new legislation, this barrier will be dismantled to make the Private Rented Sector (PRS) more accessible.

The New Rules Explained

From 1st May 2026, the Tenant Fees Act 2019 and the Housing Act 1988 will be amended to strictly limit upfront payments.

• The One-Month Cap: Landlords will be prohibited from requiring more than one month’s rent (or 28 days for weekly tenancies) as an upfront payment.
• Contractual Enforcement: Any clause in a tenancy agreement that mandates rent in advance beyond the current rental period will be deemed unenforceable.
• Voluntary Payments: Tenants retain the right to voluntarily pay rent early (e.g., if they receive a bonus). However, this must be tenant-initiated; any "invitation or encouragement" from the landlord to do so could be seen as a breach.
• Hefty Penalties: Local authorities will have the power to fine landlords up to £5,000 per breach. Repeat offenders may face even steeper civil penalties or prosecution.

Permissible Payments: What You Can Still Request

Despite the ban, landlords are not left without protection. You may still legally require:

1. First Month’s Rent: Payable after the agreement is signed but before the tenancy begins.
2. Security Deposit: Capped at 5 weeks’ rent (for annual rents under £50,000) or 6 weeks’ rent (for rents over £50,000).
3. Holding Deposit: Capped at 1 week’s rent.

Scotland and Wales: A Different Story

It is important to note that these specific reforms apply to England.

• Scotland: Rent in advance is already regulated, with a cap of 6 months.
• Wales: Currently, there is no equivalent cap under the Renting Homes (Wales) Act, and the 1st May 2026 deadline does not apply there.

Proactive Strategies for Landlords

With the ability to take a lump sum removed, landlords must shift their focus toward other risk-mitigation tools:

• Enhanced Guarantor Checks: A UK-based guarantor remains the gold standard. Ensure your guarantor agreements are robust and that the guarantor undergoes the same level of referencing as the tenant.
• Rent Guarantee Insurance (RGI): With the transition to periodic tenancies, RGI provides a safety net if a tenant falls into arrears.
• Strict Referencing: Moving forward, "borderline" applications that were previously solved with upfront rent will require more scrutiny. Look for referencing providers that offer deeper insights into open banking and payment histories.
• Aligned Payment Dates: To assist with tenant budgeting, consider aligning rent due dates with the tenant’s payday to reduce the likelihood of late payments.

Conclusion

The ban on rent in advance marks a shift toward a more transparent, but potentially riskier, rental market for landlords. Success after May 2026 will depend on meticulous preparation and a move toward insurance-backed security rather than cash-upfront cushions.