The New Cap on Advance Rent
Before the Renters Rights Act 2025, some landlords — particularly in competitive rental markets — demanded six or even twelve months’ rent in advance as a condition of granting a tenancy. This excluded millions of renters who could not access large lump sums, and disproportionately affected people on benefits, those without UK guarantors, and those without significant savings.
From 1 May 2026 this practice is unlawful. A landlord can require a maximum of one month’s rent in advance, in addition to a deposit capped at five weeks’ rent. No more, regardless of what the tenancy agreement says.
What Counts as Advance Rent?
The first month’s rent paid before you move in is permitted. Anything beyond this is unlawful advance rent, even if it is labelled as a “security payment”, “goodwill payment”, or any other name. Relabelling does not make it legal.
What If You Were Asked to Pay More?
If you paid excess advance rent on or after 1 May 2026, you are entitled to a refund of the amount above one month’s rent. Your landlord is obliged to repay it.
If they refuse, there are formal routes available — including the new PRS Ombudsman (free and binding) and the county court. Our members’ guide covers the process for demanding a refund and escalating if your landlord refuses.
Penalties for Landlords Who Break the Rules
Landlords who demand excess advance rent face substantial consequences:
- Fines for each offence
- Significantly higher fines for repeat offences
- Loss of their PRS Database registration — which means they are prohibited from letting property
- Potential Rent Repayment Orders covering up to 24 months of rent
These are not minor administrative penalties — the Act is designed to make unlawful advance rent demands genuinely risky for landlords.
What You Should Do
If you are about to start a tenancy: do not agree to pay more than one month’s rent in advance, even if the landlord or agent insists. It is unlawful and you are not obliged.
If you have already paid excess advance rent: write to your landlord formally requesting a refund of the amount above one month’s rent.
Want the full step-by-step guidance?
Our members-only guide “Advance Rent Rules — A Full Recovery Guide” takes you through exactly what to do, letter by letter, step by step. It includes the specific timescales, the forms you need, and how to build your case.
Members also get access to ready-to-use letter templates, priority support from our housing specialists, and — for urgent eviction cases — same-day response.
This is a free awareness guide produced by Renters Rights Act Services. It explains the law in general terms only and does not constitute legal advice. For detailed, actionable guidance specific to your situation, become a member at rentersrightsactservices.co.uk/claude/. We are not a law firm.