Advanced rent
Advance rent, also called rent in advance, is any rent that a tenant pays before the rent period to which it relates has begun. Under Section 9 of the Renters' Rights Act 2025, which came into force on 1 May 2026, landlords in England are prohibited from requiring or accepting advance rent before a tenancy agreement has been signed by all parties, and are capped at one month's rent in the permitted pre-tenancy period that follows. Advance rent is always rent, not a tenancy deposit, and does not need to be protected in a government-approved deposit scheme, provided it is clearly documented as rent for specific future periods.
The pre-tenancy ban: what changed on 1 May 2026
Before 1 May 2026, landlords could and routinely did ask for several months' rent upfront, most commonly three or six months, particularly from students, tenants without a UK rental history, or those with income that a standard affordability check would not support. That practice is now prohibited for new assured tenancies in England under the Renters' Rights Act 2025, which amends the Tenant Fees Act 2019.
A landlord or agent must not ask for, encourage, or accept any rent payment before the tenancy agreement has been signed by all parties. This applies even if a tenant offers to pay early. Accepting rent before a tenancy agreement is signed can result in a civil penalty and a requirement to repay the amount to the tenant. The civil penalty is up to £5,000, enforceable by the local authority. Anti-avoidance provisions in the Act also prevent landlords from routing the request through a third party.
The one-month cap and the pre-tenancy ban are both part of the wider reforms introduced by the Renters' Rights Act 2025, which came into force on 1 May 2026.
The permitted pre-tenancy period: what landlords can collect
Once both parties have signed the tenancy agreement, a landlord may require payment of the initial rent before the tenancy starts. This is the only advance rent a landlord can require. The cap is:
One month's rent, where the tenancy has monthly rent periods
28 days' rent, where rent periods are shorter than one month
This initial payment can be collected at any point after the tenancy agreement has been signed and before the tenancy start date. Any clause in a tenancy agreement requiring a larger initial payment, or requiring payment before signing, has no legal effect.
In our experience supporting landlords through the Renters' Rights Act transition, the most common confusion arises around timing: landlords sometimes request the initial month's rent at the same time as the holding deposit, before all parties have signed. This is a breach. The correct sequence is: holding deposit taken while referencing is under way, tenancy agreement signed by all parties, initial rent collected, tenancy starts.
Voluntary early payment by tenants
Tenants remain free to pay rent early if they choose to, the restrictions apply only to what landlords can require. A tenant who voluntarily pays two months' rent in a single payment is not in breach of any rules, and neither is the landlord for accepting it, provided the landlord did not ask for, encourage, or create any expectation of early payment.
Advance rent is not a deposit
Advance rent is rent. If clearly labelled as rent covering specific future periods, it does not need to be protected in a tenancy deposit scheme. However, if advance rent is mixed with security-style payments, or if a payment that is labelled as rent is in substance used as a security against damage or arrears, a court or adjudicator may treat it as an unprotected deposit, with penalties for the landlord. Once advance rent has been applied to a rent period, the landlord cannot demand that rent again for the same period, even if the tenant later falls into rent arrears.
The advance rent rules sit within the broader framework of permitted payments under the Tenant Fees Act 2019, which sets out the limited categories of payment landlords and agents can lawfully require from tenants.
Transitional rules: existing tenancies before 1 May 2026
The new advance rent restrictions apply to new assured tenancies entered into on or after 1 May 2026. Where a tenancy agreement was signed before that date and includes a clause requiring advance rent, for example, quarterly or termly payments, that clause remains valid and the landlord may continue to collect as agreed until the tenancy ends or a new tenancy is entered into.
Landlords who use August can record advance rent payments, map each payment to the specific months it covers, and ensure the arrangement does not overlap with the regular rent schedule, keeping the paper trail clear if the payment is ever queried.
Frequently asked questions
Can a landlord still ask students to pay several months' rent upfront?
Not for new tenancies entered into on or after 1 May 2026. The Renters' Rights Act 2025 prohibits landlords from requiring more than one month's advance rent from any tenant, including students and international tenants. Where a student tenancy was signed before 1 May 2026 with a quarterly or termly rent clause, that clause remains enforceable until the tenancy ends.
What if a tenant offers to pay more than one month's rent in advance?
A tenant can voluntarily pay early without any breach occurring, provided the landlord has not asked for, encouraged, or created an expectation of a larger advance payment. The restriction is on what landlords can require, not on what tenants can choose to do.
Does advance rent need to be protected in a deposit scheme?
No, provided it is clearly documented as rent for specific future periods. If the payment functions as security, held against future damage or arrears rather than applied to specific rent periods, it risks being treated as an unprotected deposit.
