If you’re renting in England, you’ve probably heard about the Renters’ Rights Act 2025. It’s the biggest shake-up to the private rented sector in decades, and it’s already changing the rules on fees, deposits, and how much you can be asked to pay upfront. I’ve been following these changes closely, and one thing keeps coming up in conversations with renters: the new cap on rent in advance. From 1 May 2026, landlords and letting agents can no longer demand unlimited rent upfront. That’s a significant shift, and it’s worth understanding exactly what it means for your next move.
For years, renters have faced the stress of being asked for six months’ or even a year’s rent upfront, especially if they didn’t have a strong credit history or a guarantor. That practice is now being reined in. The new rules cap how much a landlord can demand as rent in advance, and they also ban the practice of rental bidding, where tenants are pushed to offer more than the advertised price. If you’re looking for a new place, these changes should make the process fairer and more predictable. Here’s what you actually need to know.
How the new rent in advance cap works
The most immediate change for anyone signing a new tenancy after 1 May 2026 is the cap on rent in advance. Under the Tenant Fees Act 2019, as amended by the Renters’ Rights Act, a landlord or letting agent can only charge a maximum of one month’s rent as a payment in advance. That means if you’re asked for two months’ rent before you move in, that’s a prohibited payment. The same rule applies to any other upfront fees, like referencing charges or administration fees — they’re all banned. The only permitted payments are rent, a capped deposit, a capped holding deposit, and reasonable fees for things like changing the tenancy or replacing a lost key.
What I’d do if I were looking for a new rental right now is check the tenancy agreement carefully before signing. If you see a line asking for more than one month’s rent upfront, that’s a red flag. You can challenge it, and if the landlord or agent refuses to back down, you can report them to the local authority trading standards team. The rules are clear, and they’re designed to protect you.
Why this matters for your finances
The cap on rent in advance isn’t just a technical legal change — it has a real impact on your cash flow. Before the Act, it wasn’t uncommon for tenants with a less-than-perfect credit score to be asked for three, six, or even twelve months’ rent upfront. That could mean handing over thousands of pounds before you’ve even unpacked a single box. According to analysis from CMS Law, the ban on advance rent and rental bidding is one of the key changes designed to make renting more affordable and transparent. For a tenant on a modest income, being asked for six months’ rent upfront could be the difference between securing a home and being locked out of the market entirely.
Consider this scenario: you’ve found a flat in Manchester with a monthly rent of £900. Under the old rules, a landlord could ask for £5,400 upfront (six months’ rent) plus a deposit. Under the new rules, the maximum you’d need to pay before moving in is £900 in rent, plus a capped deposit of around £1,038 (five weeks’ rent). That’s a difference of over £3,400. For many renters, that’s a game-changer. It means you don’t need to have a huge lump sum saved just to get your foot in the door.
What I tend to notice is that renters often underestimate how much these upfront costs affect their ability to move. If you’re in a situation where you need to relocate for a job or a change in circumstances, having that cash tied up in advance rent can be a real barrier. The new rules remove that barrier, which is a positive step for mobility and financial flexibility.
Where renters still get caught out
Even with the new protections, there are still traps that can catch you off guard. The most common one is not understanding what counts as a permitted payment. Let’s break down the mistakes I see most often.
Confusing rent in advance with a holding deposit
A holding deposit is a payment you make to reserve a property while the landlord does reference checks. It’s capped at one week’s rent. Once the tenancy starts, the holding deposit must be returned or put towards your first rent payment or deposit. Some tenants mistakenly think the holding deposit is the same as rent in advance, but it’s a separate payment with its own rules. If the landlord decides not to rent to you, they must return the holding deposit within seven days, unless you’ve provided false information or pulled out of the tenancy.
Not knowing you can challenge a rent increase
Under the new rules, landlords can only increase rent once per year, and they must serve a section 13 notice giving at least two months’ notice. If you think the proposed increase is above the market rate, you can challenge it at the First-tier Tribunal. The tribunal will decide what the market rent should be. This is a powerful tool, but many tenants don’t know it exists. If you receive a rent increase notice that feels unreasonable, don’t just accept it — look into challenging it.
Overlooking the protected period
For the first 12 months of a new tenancy, your landlord cannot evict you to move in themselves or to sell the property. This is called the protected period. It gives you a full year of security, which is a big change from the old system where a section 21 notice could be served after just four months. If you’re in a new tenancy and your landlord tries to evict you within the first year for one of these reasons, they’re breaking the law.
Assuming all fees are banned
While most fees are banned, some are still allowed. For example, a landlord can charge a reasonable fee if you want to change the tenancy (like adding a new tenant) or if you want to end the tenancy early. They can also charge for replacing a lost key or security device. The key word is “reasonable” — if a fee seems excessive, you can challenge it. A good rule of thumb is that the fee should reflect the actual cost to the landlord, not be a source of profit.
→ Scroll right to see all columns
| Fee type | Allowed? | Maximum amount |
|---|---|---|
| Rent in advance | Yes | One month’s rent |
| Tenancy deposit | Yes | Five weeks’ rent (or six if rent over £50,000/year) |
| Holding deposit | Yes | One week’s rent |
| Referencing fee | No | Banned |
| Administration fee | No | Banned |
| Late rent fee | Yes | Reasonable cost |
| Change or surrender fee | Yes | Reasonable cost |
| Lost key fee | Yes | Reasonable cost |
What I’d do if I were unsure about a fee is ask the landlord or agent to put it in writing and explain what it covers. If they can’t give a clear answer, that’s a warning sign. You can also check the red flags in your rental application to spot other common issues before you sign.
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What you need to do now to protect yourself
The new rules are in place, but they only work if you know how to use them. Here are the practical steps you should take before signing your next tenancy agreement.
Check your tenancy agreement for prohibited fees
Before you sign anything, read the tenancy agreement carefully. Look for any mention of fees beyond rent, deposit, and holding deposit. If you see a charge for referencing, administration, or credit checks, that’s a prohibited payment. You have the right to refuse to pay it. If the landlord insists, you can report them to the local authority. The government has published official guidance on the Renters’ Rights Act that explains your rights in detail.
Know your rights on rent increases
If your landlord tries to increase the rent, make sure they’ve served a valid section 13 notice. The notice must give at least two months’ notice and set out the new rent. If you think the increase is above the market rate, you can challenge it at the First-tier Tribunal. The tribunal will decide what a fair market rent is. This process can take time, but it’s worth doing if the increase is significant. Remember, the landlord can only increase rent once per year.
Understand the protected period
For the first 12 months of your tenancy, you have strong protection against eviction for the landlord’s own use. If you receive a notice claiming the landlord wants to move in or sell the property within that first year, it’s likely invalid. You should seek legal advice if this happens. After the first year, the landlord can use these grounds, but they must still follow the correct process and give the required notice period, which can be up to four months.
Keep records of everything
This is a simple but crucial step. Keep copies of your tenancy agreement, any correspondence with the landlord or agent, receipts for payments, and the Renters’ Rights Act Information Sheet if you received one. If a dispute arises, having a paper trail makes it much easier to prove your case. A small safe for important documents can help you keep everything organised and secure.
What to do if you’re asked for an illegal fee
If a landlord or agent asks you to pay a prohibited fee, you have several options. First, politely explain that the fee is banned under the Tenant Fees Act 2019 and the Renters’ Rights Act. If they insist, you can refuse to pay and report them to the local authority trading standards team. The local authority can issue a fine of up to £5,000 for a first offence. If you’ve already paid the fee, you can apply to the First-tier Tribunal to have it repaid. You can also get advice from a tenant-landlord lawyer if the situation becomes complicated.
Frequently asked questions
Can a landlord ask for a guarantor if I have a low income? ▾
What happens if I break my tenancy early? ▾
Does the rent in advance cap apply to student housing? ▾
Can I be evicted if I challenge a rent increase? ▾
What if my landlord hasn’t given me the Information Sheet? ▾
The Renters’ Rights Act is a genuine step forward for fairness in the private rented sector. The cap on rent in advance, the ban on rental bidding, and the end of no-fault evictions all give you more security and predictability. My advice is to familiarise yourself with these rules before your next tenancy starts. Know what you can be charged for, and don’t be afraid to push back if something doesn’t feel right. If this was useful, you might also want to read Top 5 Rental Scams in the UK and How to Avoid Them.
Sources and Further Reading
From Nightmare to New Home: How to Avoid Dodgy Landlords in the UK — A practical guide to spotting bad landlords before you sign a lease.
The Renters’ Rights Act Information Sheet 2026. Ministry of Housing, Communities and Local Government, 2026.
Renters’ Rights Bill Becomes Renters’ Rights Act – 15 Key Points You Need to Know. CMS Law, 2025.
Tenancy Fees. Shelter, 2026.
