Your new landlord wants three or six months' rent upfront before you get the keys. In England, the law now limits that to one month's rent in advance. Large advance payments used to work as a filter, pricing out anyone without savings whether or not they had ever missed a payment.
That changed on 1 May 2026, when the Renters' Rights Act 2025's main tenancy reforms took effect in England. There are now two rules. Before you sign the tenancy agreement, a landlord or letting agent cannot take any rent at all. After you sign, they can ask for at most the first month's rent before the tenancy starts.
The rules cover private assured tenancies in England where the agreement was signed on or after 1 May 2026. They do not cover lodgers living with their landlord, social housing let by a housing association, or renters in Wales, which has no equivalent cap.
What the Renters' Rights Act 2025 says about rent in advance
Before signing. A landlord or agent must not ask for, encourage or accept any rent before the tenancy agreement is signed, even if you offer it. Under the Tenant Fees Act 2019 as amended, rent paid at that stage is a prohibited payment. The council can fine the landlord or agent up to £5,000 and order the whole payment repaid.
After signing, before the tenancy starts. Section 4B of the Housing Act 1988 limits rent in advance to the first month's rent, or up to the first 28 days' rent if you pay more often than monthly. Any term requiring more has no effect, and you can refuse to pay it.
Neither rule has any exception for tenants with poor credit, no credit history, self-employed income or overseas earnings. The government's guidance for councils sets out how the rules are enforced.
For context on the wider Act, see what tenants can claim under the Renters' Rights Act 2025.
What counts as 'rent in advance' under the law
Beyond the first month's rent, a landlord cannot require the second, third or later month's rent before the tenancy starts. That includes:
- two months' rent upfront framed as 'first and last month'
- a lump sum covering several months before keys are handed over
- a payment plan that front-loads rent before the tenancy starts
Deposits are separate. The Tenant Fees Act 2019 still caps them at five weeks' rent where the annual rent is under £50,000. If your deposit was not protected properly, that is a separate claim.
When do you pay the first month's rent and deposit?
You usually pay the deposit and the first month's rent when you sign the tenancy agreement or on move-in day. A landlord cannot take any rent before you sign. That first month's rent is rent in advance, and one month is the most allowed.
Why landlords still ask for more than one month's rent upfront
Some landlords don't know the rules changed. Others are counting on tenants not knowing.
The pattern is familiar. A tenant with self-employed income, a gap in their rental history or no UK credit record is told, often verbally, that the landlord would feel 'more comfortable' with three months upfront. The tenant has lost out on several homes already and pays.
Calling the extra a 'goodwill payment' or a 'holding deposit' does not get round the rules. Rent is rent. A holding deposit is capped at one week's rent and is a different payment.
How to get excess rent in advance back from your landlord
What you can do depends on when you paid.
If, on or after 1 May 2026, you paid rent before signing your tenancy agreement, that was a prohibited payment. Write to the landlord or agent and give them 14 days to pay it back. If they refuse, report them to your council's housing or trading standards team, which can fine them and order the whole amount repaid.
Instead, you can apply to the First-tier Tribunal (Property Chamber) on Form TFA1, unless you agreed to the money being put towards your rent or deposit. The form gives the current fee, and Help with Fees may cover it. You can't use both routes, and if the money was credited as your first month's rent, the council is usually the one that can get it back.
If you paid more than one month's rent after signing, the term requiring it had no effect, but the money is not a prohibited payment, so the council fine and the tribunal route don't apply. Ask your landlord in writing to return it or credit it against later rent. If you haven't paid yet, you can refuse.
Keep bank records or receipts for every payment. Our guide on how to report a landlord to the council covers the reporting step.
Does the one month rent in advance cap apply to existing tenancies?
No. The rules do not apply to tenancy agreements signed before 1 May 2026, or to rent paid before that date. If you signed in April 2026 and paid six months upfront, you cannot reclaim it under the new rules.
One change does reach existing tenancies. If your agreement set rent periods longer than a month, such as quarterly or six-monthly, your tenancy now runs in monthly periods with rent due at the start of each monthly period. That took effect from 1 May 2026, or from the end of the rent period running on that date. For more on how existing tenancies changed, see the assured periodic tenancy rules under the Renters' Rights Act.
Can a landlord ask for a guarantor instead of rent upfront?
Yes. Landlords who relied on large upfront payments can still ask for references or a guarantor, or take out their own rent guarantee insurance. None of those are affected by the cap.
If a landlord turns you down only because you cannot pay three months upfront, they are relying on a condition the law no longer allows. They can still choose another tenant for other lawful reasons.
If you've paid more upfront than the rules allow, Remedy can turn your tenancy agreement and payment details into a letter asking for it back, citing the right rule for when you paid.
