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Will ban on 'rent in advance' drive away landlords?

ended 26. June 2025

The new Renters’ Rights Bill will amend the Tenant Fees Act 2019 to stop landlords or letting agents from accepting payment of rent in advance of the tenancy.

Thoughts please on what it means for landlords and tenants. Responses as soon as possible.

Details here: 

Key Changes in the Renters' Rights Bill coming up

Prohibition of Advance Rent Payments

Once enacted, the Renters’ Rights Bill will amend the Tenant Fees Act 2019 to prohibit landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into.

Permitted Rent Collection Before Tenancy

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 it begins.

Restrictions on Rent Payment Terms

Also, the renting reform legislation will amend the Housing Act 1988 to provide that, once a tenancy begins, a landlord will be unable to enforce any terms in a tenancy agreement that require rent to be paid in advance of the agreed due date.

https://thenegotiator.co.uk/news/regulation-law-news/looming-ban-on-rent-in-advance-drives-huge-rise-in-demand-for-rent-guarantor/

5 responses from the Newspage community

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Editor
Michelle Lawson
Director at Lawson Financial
There are parts of the Renters Reform Bill that are beneficial for experienced landlords and then there are the diabolical unthought through things such as this. Currently, most people will pay rent around a week advance of moving in which then gives sufficient time for any banking failures/delays and processing times for the contracts to be signed by all parties and the move in finalised. It also enables a flexible move in day. This not only means that tenants will only be able to move in Monday-Friday, it means the contracts can only be signed with all present when monies are recieved, on the day of move in to mitigate risk of a signed tenancy and immediate arrears/non payment of rent. It also stops some tenants payin 6/12mths upfront. This all in all, after the pet debacle, is one big disaster waiting to happen. If only there were industry experts that the government could take guidance from...oh there are, but they are totally ignoring the advice given.
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Editor
Rob Peters
Principal at Simple Fast Mortgage
The idea behind the ban is sound. Reduce financial pressure on tenants. By limiting upfront rent demands, the government is leveling the playing field and helping prevent exploitation. It’s a move that promotes housing as a right, not a privilege for those with cash reserves.

But it’s crucial the government supports landlords too. If advance rent is banned, then access to affordable rent guarantee schemes or a robust guarantor system should be expanded.

Otherwise, landlords may tighten criteria to managed perceived higher risk tenancies. This could be reduce supply, or hike rents, which could hurt the very tenants this legislation is meant to protect.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This is another silly idea that will limit flexibility for both landlords and tenants. The bill neglects the fact that some tenants may prefer to pay rent upfront, removing a layer of flexibility some might need. This could make it harder for certain groups to secure a home, which is not the intention of the bill. For landlords, it reduces a layer of financial reassurance, makes their lives harder and adds another layer of complexity to the process of letting properties. This has good intentions at heart, but it's going to have unintended consequences, restricting choice and adding friction to the rental process at a time when the sector is already under a lot of strain.
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Tony Redondo
Founder at Cosmos Currency Exchange
The ban aims to protect 11M renters from high upfront costs, yet without clear implementation or faster courts, it will probably worsen the rental crisis. Landlords already hit by higher taxes, interest rates, and other demands like EPC requirements lose yet another tool to offset risks from tenants with poor credit, facing higher financial exposure with no-fault evictions gone and slow court processes. Small landlords may exit, shrinking the rental supply and raising rents, as per NRLA warnings. In theory, tenants gain affordability but may face stricter referencing, limiting access for some if landlords don’t pull out of the sector altogether.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Another pearl of wisdom from Whitehall just dropped, banning landlords from taking more than a month's rent upfront. This isn't tenant protection. It is economic illiteracy by the political class presently ruling Britain dressed up as benevolence. For those of us juggling the realities of the housing market, advance rent was a practical tool, a modest safeguard when dealing with tenants lacking a twenty-year unblemished financial record – think students or those new to the country. Now expect landlords, already drowning in red tape, to demand Fort Knox levels of security and pristine credit scores, effectively barring the very people this bill purports to champion. The inevitable fallout will be fewer available properties as more landlords decide the increasing risks and diminishing returns simply aren't worth the trouble, further squeezing supply and, naturally, propelling rents ever higher. Masterful work by those who have never let a property in their lives.