Prohibition on Rent in Advance: RRB 2025 Updates

The Renters’ Rights Bill (RRB), as most recently published on 15 January 2025, has introduced two significant new provisions that landlords and letting agents in England should be aware of: 

  1. A prohibition on rent in advance (beyond the initial rent due)
  2. Ceasing of a guarantor’s liability for rent once the tenant covered by the guarantee has died

Below, we take an in-depth look at each of these changes, how they fit into the broader framework of the Bill, and what implications landlords and letting agents need to consider. Please remember that the Bill is still going through Parliament and may be amended before it becomes law.

1. Prohibition on Rent in Advance (Except for Initial Rent)

One key change is a general prohibition on collecting or demanding rent in advance after a tenancy has been entered into, except for the “initial rent” covering the first rent period (or up to 28 days from the start date). This prohibition is introduced in two parts of the draft legislation:

  1. New section 4B of the Housing Act 1988 (added by the Bill)
  2. Amendments to the Tenant Fees Act 2019 that restrict pre-tenancy collection of rent

1.1 What Does “Rent in Advance” Mean in the Bill?

Under these new rules, “rent in advance” refers to any rent demanded before the period it relates to. Traditionally, many landlords have charged rent at the start of each month (e.g., on 1st February for the period 1st to 28th/29th February). Under the Bill:

  • Only the “initial rent” (the first rent period, or up to 28 days of the tenancy) can be collected before the period begins.
  • After that initial period, landlords must collect rent so that it is due during (or at the end of) the month/week/period to which it applies — not before it begins.

Consequently, under the Bill, after the initial rent period, a clause requiring rent on the 1st of a month to cover the following month would be void if it demands payment before that next rent period starts. For instance, if an agreement says the tenant must pay on 1 March to cover the period 1 April to 30 April, that would be classed as “rent in advance” and therefore prohibited by the Bill. However, paying rent on 1 March to cover 1 March to 31 March (i.e. from the first day of that same month) would not be prohibited.

Example Scenario

  • Current common practice: A landlord issues a monthly tenancy starting 1 March, with rent due on the 1st to cover 1 March to 31 March.
  • Under the new Bill: This forward-looking payment arrangement would be replaced. You could still collect the “first month’s rent” at the start of the tenancy (i.e., on day one), but for April’s rent onwards, the Bill requires that rent becomes payable during April, not before April begins.

1.2 Prohibited Pre-Tenancy Rent Payments

The Bill also makes pre-tenancy rent payments a prohibited payment under the Tenant Fees Act 2019 (similar to banned admin fees or excessive deposits). In other words, once the legislation is in force:

  • A landlord or agent cannot request or accept second (and subsequent) months’ rent before the tenancy is formally entered into.
  • No “bulk” advance: Even if a prospective tenant wanted to pay multiple months upfront (for instance, 6 or 12 months), doing so (or inviting them to do so) would break the new rules.
  • Enforcement authorities will treat this similarly to other prohibited fees, meaning landlords or agents could face civil penalties or be forced to return any improperly collected advance rent.

1.3 What Is Still Allowed?

  1. “Initial Rent”: The rent due for the very first rent period of a new tenancy (or any period within the first 28 days) can be taken in advance. Landlords will still be able to collect the standard “first month’s rent” when the tenancy begins.
  2. Deposits: Tenancy deposits are governed by their legislation. The Bill does not eliminate tenancy deposits, so taking a deposit (within the five- or six-week limit) remains lawful after a tenancy has been entered into.
  3. Holding Deposits: A holding deposit (up to one week’s rent) can still be collected before the tenancy to reserve the property, as permitted by the Tenant Fees Act 2019. This can later be applied to the initial rent or tenancy deposit on the day the tenancy starts.

1.4 Practical Implications for Landlords

  • Monthly Rent Schedules: After the Bill becomes law, landlords will be required to align rent due dates so that each payment is owed during the period it covers (e.g., rent for March is charged at some point in March, not before 1 March).
  • Review Tenancy Agreements: Landlords and agents should remove any clauses specifying rent is “due in advance” beyond the first period. The Bill automatically invalidates such clauses, but proactively updating your template documents will prevent confusion.
  • Risk Management: Some landlords have traditionally asked for several months’ rent upfront if a tenant has no credit history or is an international student. This practice will become prohibited. Landlords may wish to rely more on guarantors.
  • Enforcement: If a landlord attempts to collect prohibited advanced rent, they could face fines under the Tenant Fees Act 2019. Any rent taken improperly would have to be repaid to the tenant.

2. Ceasing Guarantor Liability After the Tenant’s Death

The second significant addition to the Bill is a provision that ends guarantor liability for rent once the guaranteed tenant has died. Inserted as sections 16N and 16P of the Housing Act 1988, this provision addresses situations where a family member, friend, or other individual has promised to cover the rent if the tenant defaults.

2.1 Current Position on Guarantors

At present, most guarantor agreements hold the guarantor liable for any unpaid rent while the tenancy continues, sometimes even if the tenant they represent passes away. This can leave guarantors facing obligations for rent accruing after the tenant’s death (especially in joint tenancy scenarios).

2.2 Proposed Changes

Under the new Bill:

  • Sole Tenants: If there is just one tenant (the person who has died), the guarantor stops being liable for any rent from the date of that tenant’s death.
  • Joint Tenants: If all the joint tenants die (simultaneously or sequentially), the guarantor's liability also ends from the date of the last tenant’s death.
  • Family Member Clause: If the guarantor is a family member of only one named tenant (in a multi-tenant setup) and that particular tenant passes away, the guarantee ends for rent from that date forward (it does not remain in force to cover surviving co-tenants).

2.3 Who Counts as a “Family Member”?

The Bill defines “family member” broadly (spouses, civil partners, cohabitees, children, grandchildren, grandparents, siblings, nieces, nephews, cousins, etc.). If the guarantor is linked to multiple tenants in a property and all those specific family members die, the guarantee ends. If the guarantor is linked to only one tenant who dies, the guarantee ends for the rent from that point.

2.4 Practical Implications

  1. Updating Guarantor Agreements: Once the Bill is in force, landlords must ensure that existing and new guarantor agreements comply. An agreement claiming continuing liability past the date of death will be unenforceable.
  2. Joint Tenancies: Landlords must be aware that if a tenant with a guarantor passes away, that guarantor’s liability automatically ends, even if other joint tenants remain.
  3. Communications: Practical steps—like confirming a tenant’s date of death and notifying the guarantor—are essential. Landlords should keep records so both parties understand when liability ceases.

3. Ensuring Compliance and Next Steps

The rent-in-advance prohibition and the cessation of guarantor liability at a tenant’s death reflect a continuing policy trend to provide more security and clarity for renters. Landlords will be required to adapt their practices once the Bill becomes law.

3.1 Reviewing Tenancy Documentation

Rent Clauses: Remove or amend standard clauses that require monthly payments in advance (beyond the initial period).

  • Guarantor Clauses: Ensure your guarantor agreements reflect that liability ends immediately upon the tenant’s death.
  • The Guild's tenancy and guarantor documentation will be updated as necessary in time for the legislation commencing.

3.3 Penalties and Enforcement

  • Prohibited Payments: Collecting improper advance rent could result in landlords or agents being fined under the Tenant Fees Act framework.
  • Unenforceable Guarantees: Attempting to claim rent from a guarantor after the relevant tenant’s death could fail in court and damage landlord-tenant relations.

4. Disclaimer: Bill Not Yet Enacted

As with other parts of the Renters’ Rights Bill 2025, these provisions are subject to potential amendments as the Bill passes through Parliament. Some details may be delayed or altered before becoming law.

5. Conclusion

The prohibition on collecting multiple months of rent in advance and the new rule ending guarantor liability upon a tenant’s death are significant changes in the Renters’ Rights Bill 2025.

Landlords and letting agents will be required to update their tenancy and guarantor documentation and adjust procedures to ensure compliance. Anyone concerned about how these changes might affect their business model — mainly those commonly collecting large advance payments from new tenants—should start planning now.

The Guild of Residential Landlords will provide ongoing updates as the Bill progresses.

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