For decades, paying rent in advance, whether by the university term, half‑year, or even a whole year, has been part and parcel of the UK rental market. Come May 1, 2026, however, the Renters’ Rights Act will change everything.
By stripping landlords of the ability to request multiple months of rent upfront, the law aims to level the playing field for millions of renters. In practice, however, it could cause a host of unintended consequences for certain tenant groups, such as international students, recent immigrants, tenants without guarantors, and anyone with a weak UK credit history.
According to the State of the Lettings Industry Report 2025, 1 in 5 renters used advance payments to secure a place to live because they couldn’t provide a guarantor. Without having this as an option, these vulnerable groups risk being squeezed out of the rental market altogether.
This challenge is further compounded by a market already under strain. Rental supply remains around 20% lower than before the pandemic, while demand has surged by more than 60% over the same period. With so many applying for properties, landlords may prioritise tenants who appear “safer” on paper, leaving vulnerable groups at the back of the queue.
In this article, we’ll break down exactly what’s changing, the unintended consequences that could disadvantage vulnerable groups, and, most importantly, how Goodlord can help tenants, landlords, and agents navigate these changes. 👇
Upfront rent is a lump-sum payment made by tenants before a tenancy begins, often exceeding the standard monthly rent. Unlike deposits held against damage or arrears, these payments go directly towards securing the property . Landlords have traditionally used them to manage risk, particularly for tenants lacking UK credit history or guarantors.
From 1 May 2026, the Renters’ Rights Act will put strict limits on upfront rent payments. It’s a decisive break from the old system, in which landlords could demand six months or even a year's rent upfront. Here’s how the rules are changing:
| Aspect | Before the Act | After the Act (May 1, 2026) |
| Amount of rent in advance | No legal limit | Capped at one month's rent in advance only |
| Tenancy agreements | Clauses requiring rent in advance were enforceable | Any clause requiring more than one month's upfront payment is void under the law. |
| Security deposit | Separate from rent in advance; capped at 5-6 weeks under the Tenant Fees Act. | Still capped at 5 weeks if the annual rent is under £50,000 or 6 weeks if the annual rent is over £50,000. |
| Barrier to entry | High upfront costs priced many renters out, especially those without large savings or UK guarantors. | Reform theoretically reduces barriers, making renting more accessible and fairer. |
Under the new law, landlords and letting agents will no longer be able to require more than one month’s rent in advance. This marks a clear break from the old system, where tenants could be asked for six months or even a year’s rent upfront.
Any clause in a tenancy agreement that requires rent in advance (i.e., before the relevant rental period) will be ineffective. For example, if a contract states “tenant must pay six months upfront,” that clause will be unenforceable. This means tenants are no longer tied down by clauses buried in the contract.
Landlords can still request one month’s rent upfront, plus a security deposit capped at five to six weeks’ rent. This ensures landlords retain some financial protection, while tenants are shielded from excessive demands.
Tenants may still choose to pay rent in advance once the tenancy has started, for example, by paying three months at a time for convenience or budgeting. However, this must be entirely voluntary and cannot be imposed by the landlord as a requirement.
The reforms introduced under the Renters’ Right Act are part of a wider effort to rebalance power between landlords and tenants and make renting fairer and more accessible. By abolishing rent in advance, the Government aims to:
The Government has acknowledged that such demands created steep barriers to entry, particularly for groups already struggling to secure housing. This includes:
By capping upfront rent at one month, the Government aims to ensure that access to housing is not determined by who can afford the largest lump sum, but by fairer and more transparent criteria.
The reform also clamps down on the minority of landlords who demanded huge sums before tenants could move in. In rare cases, renters were asked to pay up to a year’s rent upfront.
For example, an international student renting a modest flat at £1,200 per month might previously have been required to hand over £14,400 upfront, plus a deposit of around £1,500, before even receiving the keys. Under the new rules, that same student will only need to provide one month’s rent (£1,200) plus the capped deposit, dramatically lowering the barrier to entry.
By removing the ability to demand bulk payments, the Act prevents landlords from turning financial vulnerability into a barrier to entry.
The restriction on advance rent sits alongside other headline reforms in the Renters’ Rights Act, including the abolition of Section 21 “no‑fault” evictions and tighter rules on rent increases. Together, these measures aim to build a rental market that is more balanced, sustainable, and open to all.
The Renters’ Rights Act is being rolled out in phases to give landlords, letting agents, and local authorities time to prepare. Here’s the timeline for implementation:
While the regulation of upfront rent payments is intended to strengthen tenant protections, it may have unintended consequences for those it is trying to protect, punishing certain groups and reshaping the rental market in ways policymakers did not foresee.
With bulk advance payments no longer an option, landlords may rely more heavily on credit checks, employment verification, and guarantor requirements. This could make them more risk‑averse, favouring tenants with stable incomes and strong financial records while excluding those with weaker credit histories.
Some landlords may push up monthly rents to offset the perceived risk of late or missed payments. While tenants are spared the burden of lump‑sum demands, they may face higher ongoing costs that erode affordability.
The shift from lump‑sum advance payments to month‑by‑month rent introduces cashflow uncertainty for landlords. For some, this may make certain tenancies financially unviable, prompting them to either raise rents or to exit the market altogether.
Many international students and new arrivals to the UK lack guarantors or established credit histories. Previously, they could secure housing by paying several months’ rent upfront. With that option removed, landlords may view them as risky and choose not to let to them.
Those who relied on bulk payments to compensate for weak credit or limited income proof may now struggle to secure a tenancy. Without the ability to demonstrate reliability through advance rent, they risk being shut out.
Stricter screening and higher monthly rents could lock out households already on the margins, reducing access to stable housing. Those with irregular or unpredictable income, such as migrants or gig‑economy workers, may be seen as less reliable by landlords who prioritise steady monthly payments, further narrowing their rental market options.
Smaller landlords may decide the regulatory burden is no longer worthwhile, selling properties or converting them into short‑term lets such as Airbnb. This would shrink the pool of long‑term rental housing.
Some bad actors may bypass formal contracts altogether, creating shadow rental markets where legal protections do not apply. Tenants in these arrangements could be left exposed to exploitation.
It’s only natural that landlords will become more cautious under the new rules, demanding stronger credit checks, guarantors, or proof of income. For many renters, this will be a stumbling block to securing housing. Goodlord’s Professional Guarantor service offers a straightforward way through the struggle.
This means that students, international renters, and anyone without a UK guarantor can rent with confidence, even under the new rules. By offering a professional guarantor solution, Goodlord helps renters overcome the tighter screening and risk‑averse behaviour that may follow the Renters’ Rights Act.
The regulation of upfront rent payments marks a decisive break with a long‑standing practice. Yet reforms of this scale seldom arrive without side effects. Landlords may respond by tightening screening, pushing up monthly rents, or reducing supply, risks that could disadvantage international students, newcomers, and renters with weaker credit histories.
In a market already under strain, the danger is that choice narrows, and affordability erodes for the very groups the Act seeks to protect. This is what makes the emergence of professional guarantors key to the government’s aims of creating a fairer rental market.
No. Tenants may still choose to pay more once the tenancy has begun, for convenience or budgeting, but landlords cannot require it as a condition of entry. This means voluntary advance payments are allowed, but they must be entirely at the tenant’s discretion.
Yes. In fact, these checks are likely to become more common in lieu of bulk rent demands. Services such as Goodlord’s Professional Guarantor can help renters without a UK guarantor secure housing with confidence.
That is a genuine risk. Some landlords may exit the market or become more selective, which could reduce supply or push up rents to offset cash‑flow concerns.
This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information.