Rent in advance and holding deposits: England rules
Last updated 26 Oct 2026
In England, a landlord cannot ask for or accept any rent before the tenancy agreement is signed, and after signing can take at most the first month's rent before the tenancy starts. These rules apply to private tenancies signed on or after 1 May 2026, under the Renters' Rights Act 2025. This page covers England only; Scotland, Wales and Northern Ireland have their own law.
What you can take, and when
| Payment | Limit | Source |
|---|---|---|
| Holding deposit | 1 week's rent, returned within 7 days in most cases | Tenant Fees Act 2019, Schedules 1 and 2 |
| Rent before the agreement is signed | None allowed | Renters' Rights Act 2025, section 9 |
| Rent after signing, before the tenancy starts | The first month's rent, or the first 28 days' if rent is paid more often than monthly | GOV.UK guidance |
| Rent during the tenancy | Only on the due date; a clause requiring rent in advance has no effect | Renters' Rights Act 2025, section 8 |
| Tenancy deposit | 5 weeks' rent, or 6 weeks' if the annual rent is £50,000 or more | Tenant Fees Act 2019, Schedule 1 |
The rent in advance rules come from sections 8 and 9 of the Renters' Rights Act 2025, in force from 1 May 2026 under SI 2026/421. GOV.UK says they do not apply to tenancy agreements signed, or rent paid, before 1 May 2026.
Rent before the agreement is signed
GOV.UK's guidance for councils says "a landlord cannot ask for, encourage or accept rent before a tenancy agreement has been signed". That includes a tenant's own offer. The guidance gives these as breaches:
- requiring the first month's rent and deposit to clear before both sides sign;
- accepting a tenant's offer of six months' rent before the agreement is entered into;
- demanding rent early during a tenancy because the agreement says so.
The guidance says a council paying rent in advance for a household is not a breach, because a local housing authority is not a "relevant person" under the Tenant Fees Act.
Rent during the tenancy
Once the tenancy has started, rent is due on the date in the agreement. Section 4B of the Housing Act 1988, inserted by section 8 of the Act, makes terms requiring rent in advance "of no effect". A tenant can still choose to pay early: the guidance's example of a tenant paying the next two months during a tenancy is not a breach.
The holding deposit
A holding deposit reserves the home while you do your checks. Under Schedule 2 of the Tenant Fees Act 2019:
- it is capped at 1 week's rent;
- the deadline for agreement is the 15th day from when you receive it, unless you agree another date in writing;
- you must repay it within 7 days if the tenancy is agreed, if you decide not to go ahead, or if the deadline passes;
- you can keep it only if the tenant gave false or misleading information, turns out not to have the right to rent when you could not reasonably have known sooner, pulls out, or does not take reasonable steps to agree the tenancy;
- if you keep it, you must say why in writing within 7 days.
With the tenant's consent, a holding deposit can go towards the first rent or the tenancy deposit. A holding deposit does not need protecting, but once it becomes the tenancy deposit, the 30-day protection deadline applies.
The fees you can charge
GOV.UK's fees guidance says "You cannot charge your tenant any payment that is not on this list." Schedule 1 of the Tenant Fees Act 2019 permits:
- rent, a capped tenancy deposit and a capped holding deposit;
- a fee for late rent, only if the agreement says so and rent is unpaid 14 days after it was due, with interest capped at 3% above the Bank of England base rate;
- the reasonable, evidenced cost of replacing lost keys or security devices, if the agreement says so;
- £50, or reasonable costs if higher, to change the tenancy at the tenant's request;
- the landlord's loss when a tenant asks to leave early;
- council tax, utilities, a TV licence and communication services, if the agreement says so.
Viewing, referencing, admin, check-out and cleaning fees are not on the list. Section 1(3) also bars requiring a tenant to buy a service or insurance from a third party, so you cannot make pet insurance a condition. See pets in rented homes.
Advertised rent and bidding
Since 1 May 2026, a written advert or offer must state a specific rent, under section 56 of the Renters' Rights Act 2025. You must not invite, encourage or accept offers above that rent. A council can fine you up to £7,000 under section 57.
Penalties
- Prohibited payments and rent in advance. Up to £5,000 for a first breach; up to £30,000, or prosecution, for another breach within 5 years. Source: GOV.UK.
- Repayment. Where a council issues a penalty, it can require you to repay the illegal payment to the tenant.
Track the deposit with Letbook
Letbook is a compliance tracker for private landlords. It does not take or collect rent. For each tenancy in England it adds a deposit protection item and a right to rent check item, and emails you before compliance dates lapse. Sign up free.
Related guides: Renters' Rights Act: what changes and when, tenancy deposit protection in each nation and rent increases by nation.
Sources
- Renters' Rights Act 2025, sections 8, 9, 56 and 57, legislation.gov.uk
- Renters' Rights Act 2025 (Commencement No. 2 and Transitional and Saving Provisions) Regulations 2026, legislation.gov.uk
- Asking for rent in advance: guidance for local authorities, GOV.UK (updated 8 May 2026)
- Fees you can charge as part of a tenancy, GOV.UK (updated 7 July 2026)
- Tenant Fees Act 2019, Schedule 1, legislation.gov.uk
- Tenant Fees Act 2019, Schedule 2, legislation.gov.uk
- Renters' Rights Act: an overview for landlords, GOV.UK
Facts checked on 26 October 2026, relying on the 1 May 2026 commencement in SI 2026/421. This page is general information, not legal advice.