41% of letting agents unaware of rent rule changes

The latest research by The Letting Partnership has found that a significant proportion of letting agents remain unaware of key changes to rent in advance rules under the Renters’ Rights Act, despite the reforms coming into force from 1st of May 2026 and almost 40% of agents still taking more than one month’s rent up front.

The Letting Partnership surveyed UK letting agents to understand their awareness of the upcoming changes, how prepared they are, and how current practices may be impacted once the new legislation comes into force.

The research shows that 41% of agents were unaware that they will be prohibited from accepting any rent before the tenancy agreement has been signed by all parties. In addition, 36% did not know that any tenancy clause requiring more than one month’s rent in advance will become unenforceable.

This lack of awareness is particularly notable given that 38% of agents admit they currently request or accept more than one month’s rent in advance, either regularly (20%) or occasionally (18%).

However, the prohibition does not prevent tenants from voluntarily choosing to pay more than one month’s rent in advance, with the restriction applying to landlords and agents requiring or requesting such payments.

It is also the case that existing tenancies with rent in advance clauses agreed prior to 1st of May 2026 are expected to remain enforceable under their current terms, meaning some agents may continue to operate these arrangements in the short term, although this remains an area where further legal clarity may emerge.

Where rent in advance is being used, it is most commonly applied to tenants with poor credit history, cited by 37% of agents, followed by international tenants (24%) and those without a guarantor (18%), highlighting the role it currently plays in helping agents progress higher-risk applicants.

When it comes to preparedness, 44% of agents state that they are only fairly prepared or worse for the upcoming changes, with 33% saying they are fairly prepared, 9% not very prepared and 2% not at all prepared.

The findings suggest that while many agents are aware of the broad direction of reform, a substantial proportion of the market has yet to fully adapt its processes ahead of implementation.

Looking ahead, agents expect the removal of rent in advance as a tool to create a number of operational challenges. The most widely cited concern is an increased risk of rental arrears, flagged by 33% of respondents, followed by greater difficulty progressing tenants without a guarantor (25%). A further 19% expect an increase in administrative and compliance workload, whilst 15% anticipate a higher risk of disputes with landlords.

Chris Mason, COO of The Letting Partnership, said: “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.

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.”