From 1st May 2026, landlords and letting agents can no longer ask tenants to pay more than one month's rent upfront. Just as importantly, no rent can be collected until the tenancy agreement has been signed by all parties.
For many tenants, this is the most significant change to the cost of securing a rental property in a generation. Long-standing practices such as requesting six months' rent upfront, a full year's rent in advance, or quarterly advance payments are no longer permitted under the Renters' Rights Act 2025.
As a lettings specialist with branches across London and the South of England, Hamptons helps thousands of tenants move home each year. We see first-hand how upfront costs can affect affordability, particularly for tenants relocating to the UK, those without a guarantor, and applicants with non-standard income. Understanding what can and cannot be requested is now an essential part of navigating the lettings market.
This guide explains exactly what payments landlords and agents can still ask for before a tenancy begins, what is now prohibited, and what steps to take if you believe the rules have been breached.
Key insights
- From 1st May 2026, upfront rent became capped at one month under the Renters' Rights Act 2025.
- No rent can be collected before the tenancy agreement is signed by all parties.
- Holding deposits (capped at one week's rent) and tenancy deposits (capped at five or six weeks' rent) are separate payments and remain in place.
- Rental bidding above the advertised rent is now illegal.
- Local councils enforce the rules and can impose fines of up to £5,000 per breach, rising to £30,000 for repeat offences.
What the upfront rent cap actually says
From 1st May 2026, the Renters' Rights Act 2025 made it unlawful for a landlord or letting agent to require, accept, or invite a tenant to pay more than one month's rent in advance.
In practical terms, this means a landlord cannot make a tenancy conditional on paying six months' rent upfront, a year's rent upfront, or any other arrangement that requires rent beyond the first month before the tenancy begins. The rule applies regardless of how the request is presented.
A second, often overlooked, change is the timing of payment. Landlords and agents cannot collect rent at all until the tenancy agreement has been signed by all parties. Previously, it was common for first rent payments to be requested before the agreement was fully executed. That is no longer permitted.
The legislation also affects tenancy agreements themselves. Any clause requiring rent to be paid in advance for periods longer than one month, whether that is quarterly, six-monthly, or annually, is now unenforceable. Even if such wording appears in a tenancy agreement, it cannot be relied upon to require payment beyond the statutory limit.
The changes do not only apply to new tenancies. Existing tenants who have been paying rent quarterly or under another long-period advance payment arrangement moved to monthly payments from 1st May 2026. Previous agreements for longer advance periods no longer continue under the new rules.
For tenants, the result is straightforward. A landlord can ask for one month's rent in advance, but no more, and only after the tenancy agreement has been signed.
Related: Hamptons' Tenants Guide
The three payments a tenant can still be asked for
While the Renters' Rights Act restricts how much rent can be paid upfront, it does not remove every payment associated with starting a tenancy. Tenants can still be asked for a holding deposit, a tenancy deposit, and the first month's rent, provided each follows the relevant legal rules.
Understanding the distinction between these payments can help you identify when a request is lawful and when it crosses the line.
Holding deposit (up to one week's rent)
A holding deposit is paid before the tenancy agreement is signed to reserve a property while referencing and pre-tenancy checks are completed.
The Tenant Fees Act 2019 limits a holding deposit to no more than one week's rent. This cap remains unchanged under the Renters' Rights Act.
In most cases, the holding deposit is either:
- Credited towards the tenant's first month's rent when the tenancy begins.
- Credited towards the tenancy deposit.
- Refunded where the tenancy does not proceed in circumstances set out by the legislation.
A holding deposit is not the same as rent in advance and does not count towards the new one-month rent cap.
Tenancy deposit (up to five or six weeks' rent)
The tenancy deposit provides protection to the landlord against issues such as unpaid rent, damage beyond fair wear and tear, or breaches of the tenancy agreement.
The deposit limits introduced by the Tenant Fees Act 2019 remain unchanged:
- Five weeks' rent where the annual rent is below £50,000.
- Six weeks' rent where the annual rent is £50,000 or above.
Once a tenancy has started, the landlord must protect the deposit in a government-approved tenancy deposit scheme within 30 days.
Importantly, the Renters' Rights Act does not reduce or replace the tenancy deposit. Landlords can still request the maximum permitted deposit alongside the first month's rent.
Rent in advance (up to one month)
The first month's rent remains payable at the start of the tenancy, but from 1 May 2026 there are strict limits on how and when it can be collected.
The sequence now matters.
First, the tenancy agreement must be signed by all parties. Only then can the landlord or agent request payment of the first month's rent.
The amount is also capped. A landlord cannot require, accept, or invite payment of more than one month's rent in advance. This applies even if a tenant offers to pay more in an attempt to strengthen their application. Any contractual clause requiring six months, a year, or another extended period of rent upfront is unenforceable.
Worked example: what can you legally be asked to pay?
Consider a tenancy with a monthly rent of £1,800, where the annual rent is below £50,000.
The maximum lawful upfront payments would be:
- Holding deposit: £415 (one week's rent)
- First month's rent: £1,800
- Tenancy deposit: £2,076 (five weeks' rent)
That creates a total upfront cost of approximately £4,290 before moving in.
Before the Renters' Rights Act, some tenants in similar circumstances could have been asked for six months' rent upfront, pushing initial costs well above £10,000. The new rules are designed to prevent those large advance payment demands while preserving the existing framework for deposits.
Why the law has changed
Before the Renters' Rights Act came into force, some landlords asked tenants to pay six months' rent, a year of rent, or even longer periods upfront before agreeing to a tenancy. For many applicants, particularly those without substantial savings, this created a significant barrier to securing a home. It could also present challenges for international applicants, tenants without a UK credit history, and those who could not provide a guarantor.
The government's aim is to make access to rented housing more equitable by reducing the amount of money tenants need to find before they can move in. By limiting rent in advance to one month and preventing rent from being collected before a tenancy agreement is signed, the legislation seeks to remove a common affordability hurdle for first-time renters, lower-income households, and people without family financial support.
The change does, however, come with a trade-off. Some tenants previously used several months' rent upfront to strengthen their application where their references, income profile, or credit history did not meet a landlord's usual requirements. That option is now closed.
As a result, other forms of reassurance are likely to become more important. Landlords may place greater emphasis on guarantors, employer and landlord references, proof of income, or rent guarantee insurance policies that they arrange themselves. For tenants whose circumstances fall outside standard referencing criteria, demonstrating affordability and reliability through these routes may be increasingly important.
Rental bidding is also banned
The Renters' Rights Act introduces another important protection for tenants: rental bidding above the advertised rent is no longer permitted.
Landlords and letting agents must market a property at a clear asking rent and cannot accept offers above that amount. This applies even where there is strong demand or multiple applicants interested in the same property.
For tenants, this changes a practice that became increasingly common in some parts of the market. Applicants were sometimes informed that a property had received significant interest and invited to submit their "best and final offer", often leading to prospective tenants competing against one another by offering higher monthly rents.
Under the new rules, that approach is no longer lawful. The advertised rent is the maximum rent that can be agreed at the point the tenancy is granted.
This is particularly significant in high-demand markets such as London and many commuter towns across the South of England, where competition for well-presented rental properties has historically been strong. Tenants should no longer feel pressured to increase their offer simply to remain in contention for a property.
The change also introduces greater transparency into the lettings process. Prospective tenants can assess affordability based on the advertised rent, knowing that they should not be asked to bid against other applicants or increase their offer to secure the tenancy.
While landlords remain free to choose between applicants based on factors such as referencing, affordability, suitability, or move-in dates, they cannot select a tenant because they have offered to pay more than the advertised rent.
What to do if a landlord or agent asks for more than one month upfront
If a landlord or letting agent asks you to pay more than one month's rent in advance, the most important thing to remember is that the request is not enforceable. The law protects you regardless of how the payment is described or justified.
Refuse to pay more than one month's rent in advance. If a landlord says the tenancy will only be offered on the basis of six months' rent upfront, quarterly payments in advance, or a similar arrangement, you should not agree to it. The legislation prevents landlords and agents from requiring, accepting, or inviting these payments.
If you have already paid more than one month's rent upfront after 1st May 2026, contact the landlord or agent in writing. Explain that the payment exceeds the statutory limit and request repayment of the prohibited amount. Keeping communication in writing creates a clear record of the issue and gives the other party an opportunity to resolve it.
If the matter is not resolved, report the breach to your local council. Enforcement sits with local authorities, typically through housing enforcement or trading standards teams. Councils have the power to investigate complaints, require repayment where appropriate, and impose civil penalties on landlords and agents who breach the rules.
Keep records of all payment requests and conversations. Save emails, text messages, WhatsApp messages, property listings, and any documents that refer to upfront payments. While verbal requests may still amount to a breach, written evidence can make it easier to demonstrate what was asked and when.
Understand the difference between rent in advance and other permitted payments. A landlord is not breaching the rent-in-advance rules simply because they ask for a tenancy deposit and a holding deposit alongside the first month's rent. The key question is whether the rent element exceeds one month or is being requested before the tenancy agreement has been signed.
For example, a request for:
- One week's holding deposit
- Five weeks' tenancy deposit
- One month's rent after the agreement is signed
can be lawful.
A request for:
- Six months' rent upfront
- One year's rent in advance
- Any rent payment before all parties have signed the tenancy agreement
cannot be.
Knowing this distinction can help tenants identify genuine breaches and avoid unnecessary confusion during the application process.
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What this means if you can't easily provide references
One consequence of the new rules is that tenants can no longer use several months' rent upfront to strengthen an application.
Previously, applicants without a UK credit history, a UK-based guarantor, or a conventional employment record could sometimes overcome referencing concerns by offering six or 12 months' rent in advance. Sice the 1st May 2026, that option is no longer available.
This is particularly relevant for:
- Self-employed applicants with fluctuating income
- Contractors and freelancers
- International tenants moving to the UK
- Overseas students
- Recent arrivals without a UK credit record
- Applicants changing careers or returning to work after a break
For many landlords, a UK-based guarantor remains the most common alternative. A guarantor agrees to cover rent or other tenancy obligations if the tenant cannot meet them, which can provide reassurance where referencing is less straightforward.
Where a personal guarantor is not available, professional guarantor services are becoming increasingly common. These are typically paid for by the tenant and, subject to eligibility criteria, can satisfy a landlord's requirement for additional security.
Some landlords also choose to rely on rent guarantee insurance, which they arrange themselves. The availability and terms vary, but these policies can provide protection against missed rent payments and may support applications that do not fit standard referencing models.
Strong supporting evidence will also carry greater weight than it has in the past. Depending on the circumstances, this may include:
- References from previous landlords
- Employer references
- Evidence of regular income
- Bank statements demonstrating affordability
- Proof of savings
- Confirmation of future employment or study arrangements
For international applicants, many letting agents and landlords already operate specialist referencing processes. Requirements can differ between branches, landlords, and locations, so it is worth asking at an early stage what evidence will be accepted.
It is important to be realistic about the impact of the changes. For some tenants with non-standard circumstances, securing a tenancy may become more difficult because paying a large amount of rent upfront is no longer an option. At the same time, the new rules mean that no applicant can be excluded simply because they do not have access to the significant sums that six-month or annual upfront rent demands once required.
Know what you can and can't be asked to pay before you sign
The Renters' Rights Act has changed the way tenants pay for a tenancy from the outset, but those protections are only effective if tenants understand exactly what the rules allow.
The key figures to remember are straightforward:
- One week's rent for a holding deposit.
- One month's rent in advance.
- Five weeks' rent for a tenancy deposit, or six weeks' rent where annual rent is £50,000 or more.
Landlords and letting agents can still ask for these payments where they comply with the relevant legislation. However, they cannot ask for more than one month's rent in advance, and they cannot collect any rent before the tenancy agreement has been signed by all parties.
For many tenants, particularly those moving home in competitive markets, these changes provide greater certainty around upfront costs and remove the risk of being asked to find many thousands of pounds simply to secure a property.
If you're applying for a tenancy, it is worth taking a moment to check that any payment request follows the correct sequence and falls within the permitted limits. Understanding your rights puts you in a stronger position to challenge unlawful demands and move forward with confidence.
If you're looking for a property to let across London or the South of England, Hamptons' lettings team can explain exactly what you'll be asked to pay, when each payment is due, and how the process works, helping you avoid surprises at the contract stage.
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