The Renters’ Rights Act has introduced significant changes to the way landlords handle rent in advance that prohibit the payment of rent before the parties sign the agreement. Also, any clause in a new tenancy that requires a tenant to pay rent in advance, before the first day of a rent period, or for more than one month’s rent is now unenforceable.
These new rules were added to the Bill at the Report Stage of the House of Commons and affect every landlord for new tenancies, not just those who ask for large lump sums at the start of a tenancy.
The provisions have also changed how landlords and letting agents handle the initial rent payment.
The rent in advance rules came into effect for new assured period tenancies entered into from 1 May 2026. (Existing tenancies are excluded from the rules by the new Section 4B(2)(a) in the Housing Act 1988, inserted by Section 8 Renters’ Rights Act).
These new rules are complicated (unnecessarily so, in my view), and difficult to understand. But in this blog post, I attempt to break down the rules and explain what we have needed to do differently since 1 May 2026.
I cover the new rules on rent in advance in detail in The Good Landlord Handbook, including the different treatment of rent in advance depending whether it is before and after the tenancy is entered into. For ongoing support, you can join The Independent Landlord Hub.
Last updated: 10 August 2026
The new rules about rent in advance at a glance
- Overview of rent in advance ban
- Banning of pre-tenancy rent in advance payments under TFA
- The new rules about paying the “initial rent”
- Lump sum payments of up-front rent once tenancy entered into
- Paying rent in advance during a tenancy
- What if a tenant pays the rent early during a tenancy?
- Can tenants pay rent in advance now the Renters’ Rights Act is in force?
- Final thoughts
Overview of rent in advance ban
The rent in advance rules are very complicated, as the ban operates differently, depending on when the rent is to be paid and the stage of the tenancy.
I explain the rules in detail below, but here is an overview of the three types of rent in advance:
- Rent in advance before the tenancy is entered into. Landlords and agents cannot ask for or accept any rent to be paid before the tenancy is entered into. This is called a “prohibited pre-tenancy rent payment” and is a prohibited payment under the Tenant Fees Act.
- Rent to be paid between signing and the start of the tenancy. Once the agreement is signed by the parties and legally binding, the tenant can be required to pay the “initial rent” of up to one calendar month’s rent in the period between signing and the day before the start of the tenancy. This is rent in advance as it is paid before the rent period to which it relates. It is a permitted pre-tenancy rent payment.
- Rent in advance during the tenancy. Any clauses which require tenants of assured periodic tenancies entered into on or after 1 May 2026 to pay rent in advance have “no effect”. This means a landlord cannot require a tenant to pay lump sums of rent during a tenancy.
Banning of pre-tenancy rent in advance payments under TFA
Section 9 of the Renters’ Rights Act bans pre-tenancy rent payments by a “relevant person“, adding “prohibited pre-tenancy payment of rent” to the list of prohibited payments in paragraph 1 of Schedule 1 of the Tenant Fees Act 2019 (TFA). It currently classifies “payment of rent under a tenancy” as a permitted payment.
If a landlord or letting agent accepts a prohibited pre-tenancy payment of rent, they breach the TFA and can receive a financial penalty from the local authority.
What is a prohibited pre-tenancy rent payment?
A pre-tenancy rent payment for an assured periodic tenancy by a relevant person is prohibited under the Tenant Fees Act if the rent is “payable before the tenancy is entered into”. This means that both parties need to have signed the agreement and it needs to be in force.
The payment of a holding deposit or a tenancy deposit before the tenancy is entered into is not prohibited, and the holding deposit can be used to pay the initial rent due in the “permitted pre-tenancy period”.
Further restrictions about prohibited pre-tenancy rent payments
The new rules are very strict and Section 5 of the Tenant Fees Act 2019 has been amended to include the following anti-avoidance wording (which echoes the wording regarding the banning of rental bidding):
- Landlords and letting agents must not accept a prohibited pre-tenancy payment of rent from a “relevant person” (see below).
- Landlords and letting agents must not “invite or encourage” a relevant person or accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent.
- Landlords and letting agents cannot use third parties to get around the rules as they cannot accept from a third party a prohibited pre-tenancy payment of rent. They also can’t “invite or encourage” a relevant person to make the payment, or accept an offer to pay the rent to a third party.
Landlords and letting agents are liable to a civil penalty if the local authority is satisfied beyond reasonable doubt that they have breached these rules.
What is a “relevant person” for the purposes of the Tenant Fees Act?
Section 1(9) of the Tenant Fees Act 2019 defines a “relevant person” as “a tenant or a person acting on behalf of a tenant, or a guarantor”.
The Statutory Guidance on the Tenant Fees Act 2019 states that a relevant person does not include:
- a local housing authority defined in Section 1 of the Housing Act 1985
- The Greater London Authority
- a person acting on behalf of a local authority defined in Section 1 of the Housing Act 1985
- a person acting on behalf of The Greater London Authority
This means they are “excluded from the definition of relevant person if they are guaranteeing rent on behalf of a tenant”, and are also excluded from the rent in advance rules in Section 9 of the Renters’ Rights Act.
Can local authorities pay rent in advance for tenants after Renters’ Rights Act?
Yes. Local authorities are excluded from the rent in advance prohibition in the Tenant Fees Act and Section 9 of the Renters’ Rights Act.
The Asking for rent in advance: guidance for local authorities states that it is not a breach of the Tenant Fees Act for a local authority to pay rent in advance.
The statutory guidance gives an example of where a local authority agrees to pay a landlord rent in advance “in order to facilitate a let to someone who is homeless” before the applicant signs, and that they will pay an “additional lump sum of rent every 6 months”, which is written into the tenancy agreement.
Here is the explanation in the guidance of why it is not a prohibited payment under the Tenant Fees Act:
This is not a breach as a local authority is not a ‘relevant person’ in the Tenant Fees Act 2019 and is therefore exempt from the rules on rent being required prior to the tenancy being entered into.
The landlord would also be able to require the agreed regular lump sum every 6 months, if the tenancy was agreed to meet the local authority’s homelessness duty.
The new rules about paying the “initial rent”
Whilst landlords and letting agents cannot accept any rent before the tenancy agreement is entered into, they can accept the “initial rent” during the “permitted pre-tenancy period”.
This is because section 8 of the RRA amends the Housing Act 1988 by creating a new section 4B to regulate the amount that landlords can legally require tenants to pay between when the tenancy agreement is signed and when the tenants move in.
What is the “initial rent”?
The initial rent is rent that is payable for the first rent period, or “any later rent period which ends during the initial 28 day period”.
The initial rent must not be more than the rent of a rent period, and the reference to the initial 28 day period is to allow the first period to be a shorter length to align with (say) the pay day of the tenant or to allow portfolio landlords to have all rent payable on the same day of the month.
Before 1 May, it was usual to change the rent payment day by adding the extra days to the first month, so that the tenant pays more in the first month. This is no longer available, and landlords need to have a shorter rent period for the first payment, and then move onto calendar months thereafter, or vice versa.
The permitted pre-tenancy period for initial rent payments
Whilst landlords and letting agents cannot accept the “initial rent” before the tenancy agreement is entered into, they are able to accept it during the “permitted pre-tenancy period”.
The permitted pre-tenancy period starts when the tenancy is entered into and ends with “the day before the first day of the tenancy”.
Therefore, landlords and letting agents can ask for and receive the initial rent from the tenant during the permitted pre-tenancy period. The rent period for the initial rent can be shorter than subsequent rent periods, eg if the landlord or letting agent wishes the rent to be paid on a certain day of the month.
The restrictions on length of rent periods
An integral part of the new assured tenancy in the Renters’ Rights Act is that a rent period cannot be longer than one calendar month. Any terms in tenancy agreements that require tenants to pay rent for more than one calendar month at a time are null and void now the Renters’ Rights Act is in force.
This means that landlords cannot have valid clauses in new tenancy agreements that state a rent period is on a quarterly or termly basis, say for students. If there is a clause like that in a new tenancy agreement, it is null and void. (Note that the rules do not apply to tenancies in place before the commencement date).
However, it is possible for the first rent period for the initial rent to be shorter than subsequent rent periods. For instance, if a tenant moves in on the 20th of the month and the landlord or agent would like the rent to be paid on the 1st of the month, the initial rent period can be for 20th to the end of the month, and subsequent rent periods for calendar months, 1 to the end of the month.
How can landlords and agents handle payment of initial rent?
Landlords need to be very careful about when they ask for the initial rent, ie the first month’s rent to be paid, and when they accept pre-tenancy rent payments.
Section 9 of the RRA prohibits landlords and agents from asking tenants to pay the first month’s rent before the tenancy agreement is entered into, as that is a prohibited pre-tenancy rent payment under the Tenant Fees Act.
They can, however, ask for the tenant to pay the initial rent in the permitted pre-tenancy period after the agreement is signed and before the start of the tenancy.
Government guidance says: “A landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) once a tenancy agreement has been signed and before commencement.” The word “require” means have an enforceable clause in the tenancy agreement that requires more than one month’s rent at a time.
However, if the tenant then doesn’t pay the first month’s rent before the move in date, the landlord may still be bound to allow the tenant to move in, even though they are already in arrears. (Update: I know some solicitors are looking into the possibility of “conditions precedent” so the agreement will be “entered into” but not fully “in force” until the initial rent has paid, and there are arguments about whether the tenancy deposit is “consideration”, but it’s always a risk to rely on these sorts of work-arounds).
The landlord can set off the holding deposit against the first month’s rent – this is clarified in the new Section 4B of the Housing Act 1988.
When do tenants pay the deposit and first month’s rent?
Here is the process for entering into a new tenancy, including the timing of the payment of the tenancy deposit and the first month’s rent:
- Applicant pays holding deposit of one week’s rent and agrees to apply it to the first month’s rent should they pass referencing.
- Tenant referencing, landlord agrees to let the property to applicant.
- Tenant signs tenancy agreement.
- Landlord signs tenancy agreement.
- Tenant pays tenancy deposit (they can pay before the landlord signs, but it is usual to pay it after both parties sign).
- Tenancy agreement has now been “entered into”, so this is the “permitted pre-tenancy period” when landlord can ask tenant to pay the initial rent.
- Tenant pays the initial rent (less any holding deposit paid). This cannot be for more than one calendar month’s rent.
- Tenant moves into the property on the first day of the tenancy.
Lump sum payments of up-front rent once tenancy entered into
Section 8 of the Act inserted a new Section 4B into the Housing Act 1988 which prohibits terms in tenancy agreements that provide for the payment of rent in advance by “relevant persons” once the agreement is entered into, other than the initial rent.
This ban includes up-front lump sum payments, for instance the first six months, which landlords sometimes ask people to pay if they don’t have a good credit history, or if they are new to the country.
This makes it riskier for landlords to let to foreign students or tenants without a good credit history, unless they have a guarantor, as they can’t ask for rent in advance.
However, unlike prohibited pre-tenancy rent payments (before a tenancy is entered into), it is not a breach of the Tenant Fees Act for a landlord to ask for a lump sum after the agreement has been entered into. However, the tenant can say no, and the landlord cannot force them to pay a lump sum or tell them before they enter the agreement that it is conditional on them paying a lump sum once the tenancy is signed.
Also, it must be clear that any lump sum paid is rent in advance for particular rent periods, otherwise it could be said to be money held by a landlord as security for the performance of any obligations of a tenant, or the discharge of any liability of a tenant, and be considered a tenancy deposit. A landlord may not hold more than 5 weeks’ rent as security, otherwise it will breach paragraph 2 of Schedule 1 of the Tenant Fees Act.
Paying rent in advance during a tenancy
Section 8 states that any terms in a new tenancy agreement which state that rent is due in advance during the tenancy are to have no legal effect. However, they do not breach the Tenant Fees Act. This does not affect agreements in place on 1 May 2026, when the tenancy reforms in the Renters’ Rights Act came into force.
The definition of rent due in advance is rent that is “due before the rent period for which it is payable”.
For instance, if a rent period is from the 26th of one month to the 25th of the next month, the earliest the rent will be “due” is the first day of a rent period, ie 26th of the month.
What if a tenant pays the rent early during a tenancy?
Sometimes tenants pay rent early voluntarily, for instance if rent is due on Boxing Day, they may pay it on Christmas Eve.
It isn’t a breach of the Tenant Fees Act for a landlord to accept an early payment, as it’s after the tenancy agreement is entered into.
However, tenancy agreements cannot contain provisions which require a tenant to pay rent before it is ordinarily due, and it cannot be due before the first day of a rent period.
Can tenants pay rent in advance now the Renters’ Rights Act is in force?
So long as both the landlord and the tenant have entered into the tenancy agreement, tenants can pay rent in advance, eg a student paying one term’s rent in advance. Landlords can ask for a tenant to pay rent in advance after the agreement is entered into, but if the tenant says no, the landlord cannot require the tenant to pay it.
Such a request is not a “prohibited payment” under the Tenant Fees Act, unlike those payments made before the parties enter the agreement.
No clause requiring a tenant to do this is enforceable by the landlord, which means that tenants would need to do this voluntarily. Landlords also need to be careful they do not infringe the Tenant Fees Act.
If a tenant pays any rent before the tenancy is entered into, this is a breach of the Tenant Fees Act unless the landlord returns it straight away, so they cannot be said to have “accepted” it.
Note that these rules only affect NEW tenancies entered into on or after 1 May 2026. Clauses that require tenants to pay rent in advance (eg quarterly, six-monthly) for EXISTING tenancies in place on 1 May 2026 are still valid.
>> Related Post: The Renters’ Rights Act and students
Final thoughts
These new rules regarding the payment of rent in advance and the initial rent are very complicated. No doubt landlords and agents will try to find loopholes to try to get around the rules.
Let me issue a note of caution. There will be test cases, and litigation is not something to be taken on lightly. Not only is it expensive, but it is also time-consuming and stressful.
The Act contains wording that allows (for instance) the Secretary of State to amend Section 4B of the Housing Act 1988 by regulation “for the purpose of making provision about the descriptions of rent due in advance”.
My advice (and note my disclaimer), is to keep within the spirit and intent of the law unless you have deep pockets and enjoy spending lots of time with expensive lawyers.
Finally, I walk through the rent in advance rules before and during the tenancy, along with all the other changes the Renters’ Rights Act brings, in my bestselling book, The Good Landlord Handbook.
* As an Amazon Associate and a Waterstones affiliate, I earn from qualifying purchases
As regards the initial rent, my approach will be as per your ‘on-boarding’ process above accept that, as I did 15-20yrs ago, I will only sign the agreement when the tenant meets me in person with the (first month’s rent minus holding deposit) in cash, so it’s a mutual swap ensuring the 1st month’s rent is cleared payment at the same time as the contract comes into force and therefore not a ‘pre-tenancy’ payment.
Like the idea Robin as its very pragmatic but the way it is written are you allowed to ‘ask’ the tenant to bring the one months cash with them before the tenancy is signed, it seems not!
While landlords and letting agents will not be able to accept the initial rent BEFORE the tenancy agreement is entered it, can they accept it AT THE SAME TIME? i.e Would it be possible for the AST to include a clause stating that it only takes effect once the first month’s rent has been paid?
The bill says we can’t accept rent before the renter is entered into. I would say this is afterwards, as it’s difficult for it to be instantaneous. As for your last question, I think that would be risk as the agreement won’t have been entered into if it’s not taken effect? It might be possible to make the right to move in subject to them paying the rent beforehand, ie have some sort of condition precedent, but that would be with risk. The important thing is to choose the right tenants, and that means someone who will pay the rent forever more, and not try and go into rent arrears immediately.
I think the best bit would be to completely stop renting to student and foreign students, i would personally wont give keys until i receive rent even if agreement was entered – and the best bit of all let their rich parents buy them properties .. i think all landlords should completely cut renting on all students locals and from abroad and all low income people should go to housing associations .. alternatively to increase the rent to at least 3 times to current rent to avoid the disappointments in case no rent arrived post contract was signed. No protection for landlord means more vacant properties in Uk less foreigners and those who cant afford can live with parents.
its fine for me I will only sign the yenancy on the day that he moves in
That’s pretty much what I always do anyway!
Once again the rules designed to ‘protect’ tenants are only going to make it more and more difficult for those who have less than perfect credit histories and who are not ‘blue chip’ clients to find housing. Because of this I have for sometime only considered those who are almost perfect prospective tenants for my properties. I’m quite happy to wait until the right one comes along.
With regards to student lets due to start in June/July 2025 where it had been agreed that international students could pay 12 months rent in advance instead of having a guarantor, what advice would you give, if the bill becomes law before then obviously we won’t be allowed to request those monies, but if the agreement has already been signed/entered into would we be allowed to accept payment early ?
I don’t think the commencement date will happen before July 2025, so you should be ok for this year. You’ll be able to request the monies but any term in the contract after it comes into force asking for future upfront rent won’t be valid. If I had to guess the earliest it will come into effect, I would say October 2025. But that’s just a guess. Also, note my disclaimer. This isn’t legal advice 😊
when rent reform is in place do i need to refung the excess of the upfront paymetns from tenants that signed a tenancy agreement prior the start day of the reform
Hello. You’ll only need to do this if they serve a notice to quit and end the tenancy. As the Bill stands now, you won’t need to return it if they pay in advance and stay in the property.
My tenants paid me 12 months upfront when the contract started Feb 25. How should I handle the advace rental after the new rules effective ?
Should I refund those balance upfront to tenant immediately after the new Regulation effective ?
You’ll be able to keep any rent paid up front before the Renters’ Rights Act comes into force. You’ll also be able to keep any rent paid up front once the parties have entered into the agreement even after the Act comes into force. You will have to refund rent paid in advance if they leave before they have “used” all the upfront rent.
We are a retired couple who sold their house and are living with children. We would like to rent giving 12 months rent as our income isn’t enough but we do have savings from our house sale
On the starting day of the new rent reform as the AST will be voided, do we need to issue a new contract as periodic tenancy agreement for the tenancy signed prior the commencement day
It won’t be voided. Instead it will become a periodic assured tenancy. I don’t think we will need to issue a new agreement, but this is still to be confirmed.
Good Afternon Suzanne Thank you for the information my name is John from Sydney Australia wich efects my Son Dale lives in Leeds UK Hi his finding very hash by Real Estate Special Landords i was there for 5 plus weeks in Leeds wicch my family my wife side are from Leeds my son Move to new REntal place last april 2024 Real Estate ask if we pay 12 mounts in ADVANCE BECORCE My son he his on Universal credit now 12 mounts is due other week we ask if realo estate if 12 mount advance is in the end to start new agriment periodic payment direct real Estate refuse to do so to ask the Lanlord in state asking again 6 mount in advance or get section 21 aviction notice wich my son Dale has been serf by REAL ESTATE ON 03/04/2025 TWO MOUNT NOTICE TO LIVE IT is very abseting it is very hard to find place when you by self and under universal credit so my son has been advise by LEEDS CITIZEN ADVICE IT WRON LAND LORD OR REAL ESTATE TO DO SO WHY DON GIVE HIM A PERIODIC MONTLY PAYMENT WICH MY SON ASK WICH REAL ESTATE REFUSING TO DO SO IN STATE SERV HIM WITH SECTIN 21 AVICTION PLEASE ADVISE THANK YOU I BEEN IN ENGLAND 8 TIMES UP NOW KIND REGARDS JOHN FROM SYDNEY AUSTRALIA
I never take a holding deposit and if I ask for the security deposit at the same time as the first months rent, ie after the agreement has been signed, then surely there is no consideration and the contract is not made until the tenant pays. Hence the risk goes away?
So are we saying that we take 1 week Holding Deposit, then 4 weeks Deposit, equaling 5 weeks total deposit for when they leave…but now we have to give back the 1 week holding deposit by giving them a week off their first months rent? Leaving now only a 4 week deposit to insure? I normally insure the whole 5 week deposit and serve all relevant documents together with lease etc for signing before tenancy starts.
The rules for holding deposits aren’t changing so it would be deducted from the first rent payment.You can have the tenancy deposit on top of that, ie up to 5 weeks’ rent. You would sign the documents, ask for payment of the initial rent, and serve documents before the tenancy starts.
Thank you Suzanne, for all the work you are putting in to keep us landlords right. Sure we are all most grateful.
Thank you!
Hi
Do Foreign students pay whole year rent up front is it legal?
If landlord can’t take whole year upfront from foreign students what is the guarantee landlord will get there rent.
It’s currently legal for landlords to require foreign students to pay the rent upfront, but it won’t be if the rules in the current draft of the RRB come into force. If it does, foreign students are likely to need to get a UK based guarantor or buy a guarantor product.
Hi Suzanne. If an Agreement (start date August) is entered into now for a foreign student and 12 months rent paid upfront. If the RRB comes into force either before or after Tenancy start date what effect would this have on the payment upfront?
You’ll be able to keep anything paid up front by the student. Also, once the RRA comes into effect, so long as they don’t pay anything up front before you both sign the agreement, tenants will be able to pay lump sums voluntarily. But it will have to be genuinely voluntarily and the landlord mustn’t make them believe they need to do it to get the property.
Hi Suzanne, thanks for the info! Very specific and professional!
I have a question: If the contract can only be rolling for max 1-month length and the landlord cannot evict the tenant without reason, then in this case, if the landlord tries to increase the rent after one year, but the tenant disagrees with the adjusted price, doesn’t it mean the landlord doesn’t have any way to require the tenant to fulfill the new rent price? Because the landlord cannot evict without reason? Does tenet refuse to accept new rent price can be consider as a reasonable reason to evict the tenet or stop the rolling contract?
The tenant will be able to challenge the rent increase in the First-tier Tribunal – see this post: https://theindependentlandlord.com/renters-rights-rent/
If they don’t challenge the rent increase in the FTT or pay any rent set by the FTT, then the recourse for the landlord will be to treat it as rent arrears, using Section 8 – https://theindependentlandlord.com/rrb-grounds/.
Can a landlord ask for one month rent in advance in addition to a 5 week deposit 6 months before tenancy is due to start
Yes. Once the tenancy agreement is signed, landlords will be able to ask for the initial rent of up to one month to be paid. They won’t be able to do that before both parties sign the agreement.
can keys be withheld until the initial rent is paid?
You’ll need to get legal advice on that
So the initial rent payment is the one time when a landlord can ask for payment in advance of the start of the accommodation rent period (move-in date)?
Also, is the tenancy agreement deemed not to be in-force until a ‘financial consideration’ has been received ie. the initial rent payment has been received?
Are the holding deposit or security deposits considered to be ‘financial consideration’ sufficient to activate the fully signed tenancy agreement?
If you have questions, please join The Independent Landlord Hub, where I’ll be happy to answer them.
Hi Suzanne, I pay 6 months rent up front every 6 months by my choice as easier for me after a brain injury to do this rather than worry about it every month.
The estate agent working for my landlady said it won’t be possible anymore and would be illegal.
Is there anyway I can do a contract with my landlady to carry on with this agreement?
Thank you
Your estate agent has misunderstood the rent in advance rules.
Any clause in your tenancy agreement that says you must pay it at six-monthly intervals will be null and void (and not “illegal” as such, as it’s not a breach of the Tenant Fees Act or an offence). However, there is nothing to stop you paying it upfront voluntarily after the tenancy has been entered into.
If you leave before you’ve “used” the six months, you will have protection as the landlord will have to repay the balance under clause 11 of the Renters’ Rights Bill.
Here’s the wording in clause 11 which inserts a new Clause 14ZC into the Housing Act 1988:
“Repayment of rent paid for days after end of tenancy
(1) A person who paid rent as a tenant under an assured tenancy isventitled to be repaid any part of that rent that relates to days falling after the end of the tenancy.”
Hi
Sorry but this has confused me !
I’ve been a tenant for 9 years and always paid 6 months upfront.
My next upfront 6 months would be September 2026, so can I still pay 6 months upfront ?
or do I have to pay monthly now (as the agent has stated !) ?
I would prefer to carry on paying 6 monthly so will this still be allowed by law ?
I’d appreciate a basic response as I have trouble understanding (health issues)
Thank you
You can still keep paying rent up front. This is allowed because section 8 of the Renters’ Rights Act allows tenants to pay rent up front voluntarily, once the agreement is entered into, which is the case with you, as it’s not a breach of the Tenant Fees Act (which only applies to rent paid before the agreement is entered into – see section 9.
Also, any clauses requiring rent to be paid up front in agreements entered into before 1 May 2026 are outside of the rent in advance rules.
Ask your agent to look at this section 8.
As an aside, these rent in advance rules are complicated!
Thank you for your response.
Is there somewhere from a legal page that I can see so that if the agent “kicks up” about it I can send them a link to the legal thing to prove that I can continue to pay as I have been ?
Sorry for the bad terminology
Just looking for something basic and legal that I can send them so I can keep paying upfront as I have been
Thanks
Tell them to look at section 8 of the Renters’ Rights Act, that specifically says that tenancies entered into before the commencement date (1 May) are excluded from the rent in advance rules.
Hi Suzanne
My sister has recently had to sell her house. She is not currently working, but is now sitting on a large pile of cash.
Now she has got over the stress that was both the cause and effect of having to sell her house she is looking to return to the job market.
To get back on her feet she intends to rent for a year or so, find work, then maybe buy again, or perhaps continue to rent – she has a large pile of cash giving her options, but only a relatively small employment pension income currently.
However – having approached several letting agents, they will not even allow her to view properties as she is unable to show sufficient income to cover the rent. When she has stated that she would be happy to pay 12-24 months rent in advance, she is being told that the law will not allow this, and any landlord accepting such an offer would have to return the money when the Renters Rights Bill becomes an Act.
My own reading of the proposal in the Bill is that it will ban contract terms that require advance payment (at any level – 1 month or 12 months or more), but I cannot see how is would bar a prospective tenant from offering this, and a landlord accepting it.
I would also have thought that until the Bill becomes an Act current provisions apply and the new law would not apply retrospectively, so an agreement entered into now would be unaffected by any proposed changes.
Do you have any views on this?
She has even offered to place the 12-24months rent in the agents client account until the tenancy is signed, and been declined on the grounds that ” the landlord would have no guarantee of rent being paid”.
From my own experience, such a provision would have scuppered me when I returned from working abroad some years ago, took 6 months to decide what I wanted to do next work wise, but offered a landlord 12 months rent in advance in lieu of having any demonstrable income at the time. I would have been homeless if I could not rent privately.
You’re right. The new rent in advance rules won’t come into effect until the main bit of the bill comes into effect, and then it won’t be retrospective. If agents won’t accept rent in advance, they might accept a professional guarantor. Here’s one product from The Lettings Hub: https://lettingshub.co.uk/letting-agents/professional-guarantor/
Hello,
I’m seeking clarification regarding how the Renters’ Rights Bill will impact advance rent payments made under existing AST agreements.
Suppose a current fixed-term AST requires the tenant to pay rent every 6 months in advance, with each payment made 2 months before the relevant rental period to ensure payment is never late. My understanding is that once the new legislation comes into force, all tenancies will convert to periodic and rent will need to be paid monthly.
My question is what happens in the following scenario: if the tenant pays 6 months’ rent on 7 September 2025 to cover the period from 7 November 2025 to 6 May 2026, and the new Bill is enacted shortly after that payment—or shortly after 7 November—would the tenant be entitled to a refund of the full amount (if the period hasn’t started yet), or a pro rata refund for any unused months?
Essentially, does the conversion to a monthly periodic tenancy override contractual advance payments already made under the AST, and would tenants have a right to be refunded?
Many thanks in advance for your guidance.
Best regards,
Oliver
The landlord won’t need to repay any rent in advance when the new tenancy regime comes into force, unless the tenant serves notice to quit or the tenancy ends before the rent is “spent”. Tenants will still be able to pay rent in advance even when the RRB comes into effect, so long as it’s not before both parties enter into the agreement, and they do it voluntarily. Any term in an agreement saying the tenant must pay rent in advance will be null and void.
Thank you very much for the quick reply.
This might be a dumb question but have the rules gone into effect yet? Please advise. Thanks!
No, the bill is still going through parliament. They’ll probably come into effect next year
Hello Suzanne,
Thank you for the information.
In relation to credits on rent accounts resulting from revised Housing Benefit or Universal Credit decisions combined with tenant payment, registered providers of social housing (housing associations) typically retain one week’s credit when calculating the refund amount.
This practice is based on tenancy agreements which state that rent is payable weekly in advance, with payments due each Monday. Since Housing Benefit is paid four weeks in arrears, accounts naturally fall into arrears immediately after payment is received.
My question is – once the Renters Reform Bill is enacted, will housing associations still be permitted to retain one week’s credit on account when calculating refunds? Or will this approach need to be revised to align with the new legislative framework?
Any guidance or clarification would be greatly appreciated.
Best regards,
Can you advise on this sticky situation.
What happens when you sign the pre assessment tenancy costs and paying the deposit.
There was a delay moving into the property due to the landlord delaying works and didn’t move in until the new financial year. Due to them delaying work, they changed the costs of the monthly rent on the tenancy without informing me and I was no longer supported by the local authority who wouldn’t help challenge this. They increased the rent by almost £100, due to everything packed and ready to move in to the property where they kept changing my move in date, I had no choice but to accept the costs. I have been battling this out with them since I moved in and citizens advice said they can’t help either.
I’m sorry but I can’t give you advice on this
Hi I have a tenant who has voluntary paid a year in advance and now wants to do so next month. She has lived in the property for 5 years.
This helps me the landlord. I get the money early, it saves on amin and banking charges and accountancy and time etc. So her rent is lower than the mkt rent and she appreciates that. This is fully voluntary and agreed by both parties,
Do we have to stop this arrangement please?
Hello, no you won’t as the rent in advance rules won’t affect existing tenancies, and even if she were a new tenant, she can still pay rent in advance once the tenancy agreement has been entered into on a voluntary basis.
Hello, I am a tenant, and I want to pay my rent up front for a year, my tenancy will renew on 16th March 2016, which is before the May law change, I just asked my landlord and he cited the May 2026 change and said no that can’t take more than 1 month.
“Unfortunately as per the new Government guidelines that are coming into effect as of 1st May 2026 landlord’s will no longer be able to take more than 1 months notice in advance from tenants therefore we are unable to accept you paying 12 months up front.”
But from everything I read above, it is the Landlord that can’t ask for more than a month, but I am the tenant and I want to pay upfront, what have I misunderstood please? Thank you
You are absolutely correct. Tell your landlord he should subscribe to my free newsletter! Once a tenancy agreement is signed by both parties, a tenant can pay upfront if they want. It’s just a term in a new tenancy agreement that asks for rent in advance will be null and void, and a landlord can’t accept rent in advance before the tenancy agreement is signed.
Hello Suzanne, I’ve enjoyed your appearances on Charlie Lamdin’s podcasts.
I just wanted to clarify the status regarding advance payments of rent. You say a landlord can’t accept them until a tenancy agreement has been signed. Would a AST agreement signed in March 2026, which then converts to periodic on 1st May count as a signed agreement for advance rent payments from May to Oct 2026?
I am looking to start a new tenant in feb and they have offered six months rent in advance for a small £25.00 discount – at the end of the six months they would revert to monthly payments and the discount would end. How would i add this to a standard AST and would there be any issues with this come 1st May and RRA implementation. They will aso be providing a guarantor which needs adding into the AST?
It’s fine to ask for rent in advance for a tenancy in February. If you have more questions, please ask them in The Independent Landlord Hub.
Hi, thanks for the info Suzanne.
If I pay 12 months rent on 1st February 2026 and sign a tenancy for a fixed term of 12 months, am I right in thinking I could give 2 months’ notice in June 2026 (or any time after 1st May), the tenancy would shift to periodic and I would be entitled to a refund of the remaining 8 months’ rent which had been paid in advance.
Yes, but your notice will need to expire at the end of a rent period. Section 10 RRA sets out your entitlement to “be repaid any part of that rent that relates to days falling after the end of the tenancy”.
Hi Suzanne, I have existing tenants who initially paid 12 months in advance due to having some negative credit history. We renewed after 12 months with quarterly payments in advance. During this second year they were late paying the rent and then moved to monthly payments and were late again, but they were having genuine cash flow problems and communications were good. After several months they caught up with the rent and we are now back on track but still with only monthly payments. Now we come to renew again but with the new restrictions I cannot mitigate the risk with advanced rent and because of the history, I am turned down for rent guarantee insurance with these tenants. It feels like I have to live with more risk than I want to by keeping these tenants or I am ‘forced’ by the new regulations to issue a Section 21 at the end of the tenancy and look for new tenants. My understanding is that the tenants would be willing to pay quarterly or annually in advance, certainly preferable to moving out, but this option is not allowed by the new regulations. Do you have any advice in this situation. Many thanks, Jonathan
Sorry I don’t give advice via the comments of this website. If you’d like to ask me questions, please join The Independent Landlord Hub
Hi Suzanne,
I am a landlord and i am signing the contract with new tenants in the foirst week of March. Can I request 6 months of rent in advance? The new regulation starts in May 2026 so i hope it does not effect contract signed before that deadline.
Yes that’s fine.
new RRA in may, if a TT request a substitution and the landlord refuse but one leave and the remain refuse to leave, which ground the landlord to reposess the property back?
This is the sort of question I answer in The Independent Landlord Hub.
As a British Citizen recently repatriated back to the UK from the Middle East, I’m finding this very tricky. My credit score isn’t great as I’ve been abroad a long time, and because we left in a hurry thanks to the war, I don’t have a job lined up yet. However we have a UK guarantor and money to pay rent up front for 6 months. I’m finding that agents are not even willing to meet with me when I enquire about properties when I explain our situation, and will not accept the up front payments. Am I right in thinking that as long as the tenancy is signed before May 1st, I should still be able to do this and be considered?
That’s right. You can also look for a professional guarantor
Thank you Suzanne. I do have a guarantor lined up who I have also mentioned to the agents. This doesn’t seem to have made a difference. Are there specific requirements for a guarantor to be considered more suitable?
Hi, can a landlord or letting agent accept a voluntary lump sum payment (if not requested) in the inital payment during the permitted pre-tenancy period? the gov guidance says ‘once the tenancy has started’ which i would assume would be after the commencement date?
It’s not a breach of the Tenant Fees Act to accept any rent in advance once the tenancy has been entered into. The Tenant Fees Act prohibited payment rules are in Section 9 RRA, and they are only for prohibited pre-tenancy rent paymerns.
I am confused as to when I should be serving notice in the future. AST signed before 1st May 2026 with a fixed term of 1st July 2026 – 30th June 2027. The rental payments schedule is set up so the rent is paid in advanced effectively termly, with the last payment due 15 April 2027 to cover till the 30th June 2027.
The renters act states giving your landlord notice must be done:
• so the tenancy ends on a day when the rent is due or the day before the rent is due
You will need to give your landlord at least 2 months’ notice.
So in my case, if I wanted to leave on 30th May, when should I give the 2 months notice?
I explain the rules for notices to quit here: https://theindependentlandlord.com/resources/property-investors-glossary/tenant-notice-to-quit/
It’s the “rent period” not when rent is due that counts for notices to quit.
Sorry, I did read that link above but still not 100% clear as our agreement is not monthly rental periods… our charges schedule reads
Charge date:
01/08/26 – £620.00
01/09/26 – £620.00
01/10/26 – £2,067.00
15/01/27 – £2,067.00
15/04/27 – £2,067.00 – this covers rent up to the 30th June 2027
Additional clause – The tenant shall pay the rent in 10 days advance of the stated dates in the above payment schedule by direct debit.
Rental period is the period between rent due dates – 15/01/27 – 14/04/27
So if I wish to end the tenancy on the 30th May, I need to serve notice on or before the 14th March 2027?
I’m sorry but I can’t give detailed advice
Thank you for your help. Re looking at the agreement, it states the rent per month is £X, with a defined payment schedule.
I am taking this to mean the rental period is monthly so clearer to me now.
Hello Suzanne, I have tenancies that started last September which were 12 month fixed, now periodic of course. But I took an extra month’s payment for August 26 (which was at that point the last month of the tenancy) for those from overseas who cannot provide guarantors. These tenants want to continue beyond August hopefully for another year at least. Normally in this case I would have kept that payment in advance to have that in the bag as it were…
I am confused as to whether I can do this. I am increasing the rent and was intending to give the new contracts from 1st September with all the new wording in. If I ask them to pay for August now and keep their rent in advance would this be in breach of new regs? Or is this ok as I took it previously? Thanks so much for your clarity on this.
Hello. This is the sort of question I answer in livestreams in my membership, The Independent Landlord Hub.
I’m hoping someone with knowledge of housing law can help me understand my position.
My tenancy agreement was signed on 15 October 2025, before the Renters’ Rights Act came into force. I paid the first 12 months’ rent upfront because I didn’t meet the landlord’s affordability requirements at the time.
My tenancy agreement contains the following wording:
“Thereafter rent will be payable monthly.”
“Should the tenancy continue or renew, rent will be due in advance from 15 October 2026 at the same recurring frequency, unless otherwise agreed by both parties.”
Before I signed, there was also an email explaining that I would need to pay the first year’s rent upfront because of my circumstances.
I’ve found what seem to be conflicting views:
Shelter’s professional guidance says that existing agreements signed before 1 May 2026 can still have enforceable advance-rent clauses if the agreement expressly requires future rent to be paid in advance.
However, I’ve also received legal advice saying that because my tenancy is now an assured periodic tenancy under the Renters’ Rights Act, the advance-rent clause is no longer enforceable and I can pay monthly.
My questions are:
How would you interpret the wording of my tenancy agreement?
Does “thereafter rent will be payable monthly” conflict with “same recurring frequency”, and if so, which is more likely to prevail?
Do the transitional provisions for agreements signed before 1 May 2026 mean that an express advance-rent clause can still be enforced after the tenancy has become periodic?
I’m not looking for anyone to act as my solicitor, just trying to understand how these provisions fit together before I seek further advice.
Shelter is correct in that pre-1 May rent in advance clauses in ASTs that are now APTs are still enforceable. This is because the rent in advance rules in Section 8 of the Renters’ Rights Act do not apply “to a tenancy entered into before the commencement date”. Under Section 146, those ASTs became APTs on 1 May, but are subject to transition provisions.
My tenancy agreement was originally signed in August 2022 and includes a clause requiring one year’s rent to be paid in advance each year. The agreement has been renewed several times, with the most recent renewal extending the term for a further 12 months until 9 August 2026.
With the Renters’ Rights Act 2025 coming into force on 1 May 2026, I understand that my tenancy converted into an assured periodic tenancy after 9 August 2026 and now entitled to pay rent monthly. Am I right?
However, the agent continues to insist that I must pay one year’s rent upfront and states that the rent in advance provisions in Section 8 of the Renters’ Rights Act do not apply “to a tenancy entered into before the commencement date,” even though my further fixed period ended on 9 August 2026.
The agent is correct, as clauses requiring rent to be paid in advance in existing tenancies in place on 1 May 2026 still continue undeer the transition rules
My understanding is that following the end of my fixed term on 9 August 2026, once the fixed term expired, the transitional rules applying to existing tenancy agreements also came to an end. As a result, the clause requiring one year’s rent to be paid in advance each year should no longer have effect. Does my interpretation is correct?
I believe that my tenancy has now become a periodic tenancy and entitle to pay rent monthly in accordance with the Renters’ Rights Act 2025. Am I right?
That’s not correct. The transitional rules on rent in advance aren’t linked to the fixed term. This is because the new Section 4B of the Housing Act 1988 which deals with rent in advance during a tenancy “does not apply to a tenancy entered into before the commencement date (which has the same meaning as in section 146(3) of the Renters’ Rights Act 2025)”. The commencement date was 1 May 2026.
Hi Suzanne,
My brother and I both international students rented a flat and entered into a tenancy agreement in Aug 2024 with a fixed 3 year contract with special condition to pay 6 months rental in advance throughout the tenancy period. My last rental paid on 25th June 2026 to cover the period of 26th Aug 2026 to 26th Feb 2027.
On 6th Aug 2026, the property agent serve us the Form 4A under Section 13 of Renter’s Rights Act 2025 with the proposed rent increase starting 26th Oct 2026. I have since replied that I do not accept the rent increase and stated that the property agent can only increase rent starting 27th Feb 2027 onwards as I have already made advance rental payment.
Subsequently, the property agent sent another email demanding that I pay the rent difference calculated from 26th Oct 2026 to 26th Feb 2027 immediately.
In this scenario, are we obligated to make such additional rental payment difference and accept the rent increase. Can the property agent demand the unagreed rent difference simply because they have served the Form 4A? Appreciate your guidance.
You can challenge the proposed rent increase at the First-tier Tribunal. Here is the government guidance: https://www.gov.uk/guidance/apply-for-an-open-market-rent-determination. Here’s my blog post on it from the landlord’s perspective, but it’s still useful: https://theindependentlandlord.com/ftt-challenge/
If you challenge the rent increase, it will delay when the rent comes into effect until after the tribunal decides. It costs £47 and there is a long form to fill in. (See my post).
Thank you for your prompt reply.
Is my understanding correct that since I have paid the rental in advance in June 2026 that covers the period from Aug 2026 to Feb 2027 prior to receiving the Form 4A in Aug, the landlord cannot demand that I pay the difference for Oct 2026 to Feb 2027? As the landlord as accepted my current rent as per the tenancy agreement, the landlord can only increase the rent after this prepaid period which is Feb 2027.
I am confused on when the landlord has the right to increase the rent since I have already fulfilled my obligations based on the existing tenancy agreement.
I think your landlord can increase the rent, subject to any appeal to the First-tier Tribunal. This is because paying rent in advance doesn’t stop a landlord from later increasing the rent. The landlord can increase the rent every 12 months now the Renters’ Rights Act is in force, but it is subject to challenge by tenants at the first-tier tribunal. The landlord will win if the increased rent is not above the open market rent. If you can show evidence it’s above the going rate, you are likely to win. You have until the date in question 4.6 to apply to the tribunal (although I’d apply a few days earlier), and the new rent will then be delayed until after the tribunal makes a decision.
I have stayed in this property for 2 years, the rent is due on the 23rd of the month, I pay one months rent. When there is a Bank Holiday, The landlord gets the rent a few days late. The letting agency keep sending me emails to say I am in arrears. As I have paid rent One Month in advance, I tell them I cannot be in arrears. It is not my fault the Banks are closed. Now the rent is going up and I am being asked to pay four days earlier to prevent this situation. I have said I am happy to do this, but, I will charge interest for the four days. The contract states the rent is due on the 23rd by direct debit. Can the landlord force me to pay early ? Can I claim the interest ?
No, the landlord can’t force you to pay early, and can’t even charge interest until you are 14 days’ late. Tell the letting agents to stop harassing you
Can my landlord force me to pay rent before the due date ? My rent is due on the 23rd of the month, they want me to pay on the 19th. The reason given is that if rent is due on a Bank Holiday weekend, they need to wait a few extra days. It is not my fault that the Banks close. Do I need to agree to this ? There is nothing in writing.
No, and they can’t penalise you for it anyway as they can’t charge interest unless you’re 14 days late.