Changes to accepting rent in advance and bidding wars

The private rented sector (PRS) is entering a new phase of reform. From May 2026, the Renters’ Rights Act will reshape how tenancies are managed, marketed and regulated.

These reforms are designed to create greater clarity, structure and consistency across the sector. For responsible landlords, they offer a more transparent and stable market in which to operate, and our experienced team can help you prepare well in advance and adapt with confidence.  

Read on for our in-depth analysis of this specific change, and find out how we can help you navigate it.    

What’s changing on 1st May 2026:  

The Act bans bidding wars on properties to let and limits rent in advance payments to one month. Landlords may request up to one month’s rent in advance, provided this is requested after the tenancy agreement is signed and before the tenancy begins. Once the tenancy is underway, rent must be paid in line with the agreed-upon due date, and no clause can require payment earlier than the period it covers. While tenants remain free to pay rent early if they wish, this cannot be a requirement.

For existing tenancies already in place on the commencement date, any clauses requiring advance rent will continue to be valid. You may request one month’s rent upfront at the start of a tenancy, but you cannot require rent to be paid early during the term itself.

With these updates, including limits on rent in advance and changes to property marketing, setting the right rent from the outset and ensuring appropriate protections are in place is more important than ever. Our team is here to review your current approach and help you adapt smoothly and confidently.

Our view:  

The market will naturally adjust to these provisions, with rents set at an optimised level to reflect demand and property value. The vast majority of landlords are responsible and already provide decent housing and a good service for their tenants. The Decent Homes Standard (DHS) will help landlords by clarifying requirements and establishing a level playing field, backed up by consistent enforcement. It will make the expectations clear and identify those landlords who don’t comply, making the sector fairer for those who do.

The right rent price strategy matters more than ever. 
As bidding wars are removed from the process, accurate market pricing and strong tenant selection will be key to maximising returns. Speak to us about how we position properties to perform well under the new framework.

How we can help:  

We’ll ensure your property is marketed competitively while adhering to these new rules. Our exclusive Rent & Legal Protection policy (RLP) offers additional protection here, covering landlords If the first month’s rent isn’t paid after a tenancy is signed. Our clients can now claim immediately without this impacting any future claims.  

Have questions about how this affects your existing tenancies or future lets? 
Our team is happy to review your current arrangements and talk through any changes you may need to make. Contact us for clear, practical advice.

FAQs  

Q. Can I still choose the tenant if multiple applicants are interested?

A. Yes. You can still select the tenant you feel is the best fit for your property. The key change is that tenants cannot offer, and landlords cannot request more than the advertised rent to secure the tenancy.

This shifts the focus to suitability rather than price competition. Our team can guide you through a compliant, robust selection process to help you secure the right tenant with confidence.

Q. How should I price my property if bidding wars are banned?

A. Your property should be priced and marketed in line with its true market rental value. With bidding wars removed, accurate pricing is essential to attract strong applicants and minimise void periods.

Our team provides detailed market insight and strategic advice to ensure your property is positioned competitively under the new framework. Speak to us for a tailored rental valuation.

Q. Does the ban on rent in advance apply to all tenants, including international or self-employed tenants?

A. Yes. The restriction applies to all tenants. You may request no more than one month’s rent in advance, and only after the tenancy agreement has been signed but before it begins.

If you require additional reassurance, we can advise on compliant alternatives such as guarantors and thorough referencing. Contact us to discuss the best approach for your property.

Q. Can I still protect myself if the first month’s rent isn’t paid after signing?

A. Yes. Our exclusive Rent & Legal Protection (RLP) policy is designed to protect landlords in this situation. Eligible claims can be made immediately if the first month’s rent is not paid after signing, without affecting future claims.

If you’d like to understand how this works alongside the new legislation, our team would be happy to talk you through it.