"What these findings show is that while the industry is aware that change is coming, a significant proportion of agents are still not fully across the details of how these rules will operate in practice"
- Chris Mason - The Letting Partnership
A significant share of letting agents remain unclear on upcoming rent-in-advance rules, despite changes under the Renters’ Rights Act taking effect this week.
Research from The Letting Partnership shows gaps in awareness across the sector, with many agents yet to fully adjust their processes ahead of implementation. The findings suggest that while the direction of reform is widely recognised, a detailed understanding of how the rules apply in practice remains inconsistent.
Awareness gaps emerge around the rent-in-advance rules
The survey found that 41% of agents were unaware that they would be prohibited from accepting any rent before all parties have signed the tenancy agreement. In addition, 36% did not know that clauses requiring more than one month’s rent in advance will become unenforceable.
This lack of clarity sits alongside current market behaviour. Around 38% of agents said they still request or accept more than one month’s rent upfront, with 20% doing so regularly and a further 18% occasionally.
However, the reforms do not prevent tenants from choosing to pay more than one month’s rent voluntarily. The restriction applies specifically to landlords and agents requesting or requiring such payments.
Existing tenancies that include rent in advance clauses agreed before 1 May 2026 are expected to remain valid under their current terms. Some agents may continue operating under these arrangements in the short term, although further legal interpretation may shape how this area develops.
Operational reliance highlights adjustment challenge
Rent in advance has played a defined role in tenant selection. Among agents who use the approach, 37% apply it to tenants with poor credit histories. A further 24% use it for international tenants, while 18% apply it where no guarantor is available.
These figures underline how the practice has supported agents in progressing higher-risk applicants. Its removal as a standard tool is likely to require adjustments in both referencing and affordability assessments.
Preparedness levels also vary. Around 44% of agents said they are only fairly prepared or less for the changes, including 33% who feel fairly prepared, 9% not very prepared, and 2% not prepared at all.
Concerns grow over arrears and workload
Agents expect the changes to bring operational challenges. The most common concern is a higher risk of rental arrears, cited by 33% of respondents. A further 25% expect greater difficulty progressing tenants without a guarantor.
Other anticipated impacts include increased administrative and compliance demands, flagged by 19% of agents, and a higher likelihood of disputes with landlords, mentioned by 15%.
"Rent in advance has long been used by agents as a practical tool to help progress tenants who may not meet standard referencing criteria, whether that’s due to income structure, credit history or a lack of a guarantor," said Chris Mason, chief operating officer at The Letting Partnership.
"What these findings show is that while the industry is aware that change is coming, a significant proportion of agents are still not fully across the details of how these rules will operate in practice. As rent in advance is effectively removed as a risk management tool, agents will need to rethink."
"Affordability checks and guarantor requirements will need to adapt, but so will the underlying client accounting processes. Ensuring rent is collected, recorded and handled correctly under the new framework is essential. Those agents who take the time to review and adapt their processes now will be in a far stronger position to manage both compliance and risk as the new legislation comes into force."
The findings point to a period of adjustment for the lettings sector, as agents align their practices with the new rent-in-advance rules and respond to changing risk management requirements.
