Rent in advance and rent bidding: what the Renters’ Rights Act allows

Rent in advance

For tenancy agreements signed on or after 1 May 2026, the Renters' Rights Act sets three rules:

1. Before the agreement is signed, you cannot ask for or accept any rent.
2. After signing and before the tenancy starts, you may ask for the first month's rent at most. If the rent is paid more often than monthly (weekly, for example), the limit is the first 28 days' rent.
3. Once the tenancy has started, you cannot require rent to be paid before its due date. A term in the agreement that says otherwise cannot be enforced.

A tenant may still choose to pay early once the tenancy is running, and you may accept that. What you cannot do is make it a condition of the let. That means no more "six months up front" from a student, an overseas applicant or someone who has just started a job. If you want more security, a guarantor or referencing are the usual routes.

The council enforces these rules. It can order a prohibited payment to be repaid and impose a civil penalty of up to £5,000, more for a repeat breach.

Rent bidding

Every written advert must state the rent you are asking. After that:

• you cannot invite or encourage offers above it ("offers over", "best and final", "best bid");
• you cannot accept an offer above it, even one the tenant makes unprompted;
• you cannot publish another advert for the same let at a higher rent;
• you can accept less than you advertised.

If several people want the home, you choose between them on the advertised rent. The choice is yours, and it must not be based on whether someone receives benefits or has children: blanket bans on those groups are unlawful.

Councils can fine up to £7,000 for a breach of the bidding ban.

Holding deposits

A holding deposit, paid to take the home off the market while checks are done, is still allowed under the Tenant Fees Act 2019:

• at most one week's rent (the annual rent divided by 52);
• the deadline for agreement is the 15th day after you receive it, unless you both agree a different date in writing;
• you must repay it within seven days if the tenancy is agreed (or put it towards the first rent or the deposit, with the tenant's agreement), if you decide not to go ahead, or if the deadline passes;
• you may keep it only if the applicant gave false or misleading information, fails a right to rent check, pulls out, or does not take reasonable steps to agree the tenancy by the deadline. You must tell them why in writing within seven days.

The tenancy deposit

The cap is unchanged: five weeks' rent where the annual rent is under £50,000, six weeks above that. Protect it within 30 days.

Putting it together

A typical start now looks like this:

1. Advertise with a clear rent.
2. Take a holding deposit of one week's rent or less, if you want one.
3. Do the right to rent check and any referencing.
4. Give the written statement of terms, then sign.
5. Take up to one month's rent and the deposit.
6. Protect the deposit and give the prescribed information within 30 days.

LevelMoves can keep the deadline for agreement and the 30-day deposit deadline in your diary.

This guide is information about the law in England, not legal advice.