Landlords seeking to continue charging rent in advance after the Renters’ Rights Act takes effect on 1st May will need to ensure their tenancy agreements are correctly worded, according to legal analysis from property law firm Spector Constant & Williams.
David Smith, Partner at the firm, has clarified that whilst existing tenancies with rent in advance arrangements can continue, many landlords may face unintended consequences due to imprecise contract drafting.
New restrictions on advance payments
The Act will introduce Section 4B into the Housing Act 1988, prohibiting landlords from demanding more than one month’s rent in advance under new tenancies. The provision covers both requests for multiple months’ rent upfront and arrangements such as collecting the first and last month’s rent at the start of a tenancy.
A late amendment during the Bill’s passage through the House of Lords exempted existing tenancies from the restriction, allowing current rent in advance arrangements to continue for the life of that tenancy or the lifetime of the tenant.
Contractual wording critical
Smith highlighted that the continuation of existing arrangements depends heavily on how tenancy agreements are drafted. “If a tenancy is worded such that the rent is stated as payable every six months, for example, then that will be fine,” he stated in a post on LinkedIn.
However, he warned that many agreements contain ambiguous language. “I see a lot of agreements where the rent is stated as being monthly but payable on two specific dates six months apart, and then nothing more is said,” Smith explained.
In such cases, the wording likely means that rent will not continue to be payable six-monthly in advance because that is not what the agreement specifies. The development comes as housing market activity slows amid mortgage rate volatility, adding further complexity to the rental sector.
Implications for landlords
The legal interpretation suggests landlords with existing rent in advance arrangements should review their tenancy agreements before 1st May to determine whether their current practices can continue. Those with imprecise wording may need to adjust their payment terms or accept monthly rent collection going forward.
The changes form part of broader regulatory shifts affecting the rental market, as property investors navigate evolving market conditions in 2026.
The restriction on rent in advance is intended to reduce financial barriers for tenants entering the rental market, though the exemption for existing tenancies means the full impact will only materialise as new agreements are signed.
