Rent in advance and guarantors: What’s changed?

The old system

Previously, landlords could ask a tenant to pay rent upfront as a way to lower their financial risk. Say the person had a poor credit history or recently moved here from overseas – the landlord took rent in advance in case they later struggled to make payments. 

This buffer isn’t an option anymore. According to the government, rent in advance is an unfair practice that can strain tenants’ finances and stop them from moving home. The government has therefore introduced new rules as part of the Renters’ Rights Act, which seeks to improve tenants’ lives and, in this case, limit how much families need to pay to secure a property.

The new system

As of the 1st of May 2026, when the first phase of the Renters’ Rights Act was implemented, rent payments in advance are capped at one month.

Private landlords in England:

• Can only ask for a maximum of one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) in advance
• Cannot add extra days to the first month to line up calendar dates
• Must wait until both parties have signed the written tenancy agreement to accept the rent payment
• Can’t enforce any terms in an agreement that require rent to be paid before the agreed due date from then on

This doesn’t stop tenants from choosing to pay multiple months’ rent in advance once the tenancy has started, allowing them some flexibility. But landlords cannot require them to do so as a condition of their tenancy.

Should landlords break the rules, local authorities can issue civil penalties of up to £5,000 and order them to repay prohibited rent charges to the tenant. 

The reliance on rent guarantors

While the new rules help renters with their finances, they have knock-on effects for landlords’ cash flow.

There’s increased emphasis on guarantors providing a financial backup if a tenant can’t afford their rent. This can be a tenant’s family member or friend. Alternatively, the tenant can pay for a third party to act as their guarantor (such as Rent Guarantor).

Note: A rental guarantor is different from a rental guarantee insurance policy, which a landlord buys to protect them from missing rent payments. This blog post explains the differences in more detail.

Here are some things to keep in mind about rent guarantors:

• Landlords should carry out credit checks on guarantors, the same way they do on tenants
• A written agreement must set out the guarantor’s legal obligations so they understand what they’re committing to – for example, if they are responsible for paying for damages as well as rental payments
• In the case of joint tenancies, it must be clear who the guarantor is financially responsible for – i.e. all tenants or just an individual
• It’s best if the guarantor doesn’t live abroad, as it’s easier to take legal action against a UK resident

Final thoughts

We suggest landlords double-check their processes. Crucially, make sure you don’t encourage or accept a prohibited rent payment and, if necessary, improve your system for vetting guarantors. If you’d like some professional guidance, find your local Winkworth office and talk to a member of our team.