MHCLG has published statutory guidance for local authorities on enforcing the Renters' Rights Act ban on requesting rent in advance before a tenancy is signed. Landlords and agents face civil penalties of up to £5,000 for a first breach, rising to £30,000 (or prosecution) for repeat offences within five years.
The Ministry of Housing, Communities and Local Government published statutory guidance on 8 May 2026 setting out how local authorities should enforce the Renters' Rights Act 2025 prohibition on requesting rent in advance before a tenancy agreement is signed.
Under sections 8 and 9 of the Act, a landlord or letting agent cannot ask for, encourage, or accept rent before the tenancy agreement has been signed by both the landlord (or their agent) and the tenant. This prohibition came into force on 1 May 2026 and applies to all new tenancies. The guidance makes clear that enforcement responsibility falls primarily with Local Weights and Measures Authorities, though other councils may also act in their area.
The guidance includes specific breach examples. Charging a non-refundable holding deposit as a condition of proceeding, requesting any rent payment before contracts are exchanged, or even accepting a tenant's unsolicited offer to pay six months upfront prior to signing — all constitute breaches. A civil penalty of up to £5,000 applies to a first breach. Where a landlord or agent commits a further breach within five years, they face a civil penalty of up to £30,000 or criminal prosecution.
Landlords and letting agents should update their processes now. Any rent collection workflow that currently captures payment before both parties have signed the tenancy agreement must be revised. This is a firm prohibition, not a default position tenants can waive.
Action required
Review your rent collection practices immediately. Under sections 8 and 9 of the Renters' Rights Act 2025, you cannot ask for, encourage, or accept any rent payment before the tenancy agreement has been signed by both parties. This applies even if a tenant voluntarily offers to pay multiple months upfront before signing.
Effective
2026-05-01
This content is for general informational purposes only and does not constitute legal, financial, or professional advice. Always verify information against the original source and seek independent professional guidance before acting on any regulatory matter.