A significant proportion of letting agents remain unclear on new rent in advance rules coming into force this week under the Renters’ Rights Act 2025, according to new research.
Data from The Letting Partnership shows 41% of agents are unaware they will be prohibited from accepting rent before a tenancy agreement is signed, while 36% do not know that clauses requiring more than one month’s rent in advance will become unenforceable.
The findings come despite 38% of agents admitting they currently request or accept more than one month’s rent upfront, highlighting a gap between current practice and incoming regulation.
Preparedness also remains mixed, with 44% of agents saying they are only fairly prepared or worse ahead of implementation, pointing to potential disruption as the new rules take effect.
RISK MANAGEMENT
The changes are expected to impact how agents manage higher-risk tenants, with rent in advance commonly used for applicants with poor credit history, international renters or those without a guarantor.
Chris Mason (main picture, inset), Chief Operating Officer at The Letting Partnership, says: “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.
“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.”
AGENT RETHINK NEEDED
And he adds: “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.”
