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Rent bidding and market value

The Renters’ Rights Bill introduces new limitations on how much rent can be requested or accepted in advance. 

The measure is designed to prevent rent bidding and make the process of finding a rental property fairer for prospective tenants. While landlords can still ask for rent upfront, the legislation ensures that this practice remains fair and proportionate.

Key takeaways

What you need to know

  • Only one month’s rent in advance can be requested before a tenancy begins.
  • This rule applies after the tenancy agreement is signed.
  • The change aims to reduce financial barriers for tenants.
  • Deposits and guarantors are still permitted, but must be used fairly.
     
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What's changing?

Under the new rules, landlords will be limited to requesting no more than one month’s rent in advance. This applies once the tenancy agreement has been signed and before the tenancy begins.

What you need to know

  • Tenants have a legal right to request a pet.
  • Landlords must respond within 42 days and cannot unreasonably refuse.
  • Reasonable conditions and pet insurance can be required.
  • Tenancy agreements should be updated to reflect the new rules.

When can rent be requested?

Landlords can still request the first month’s rent before the tenancy starts, or 28 days’ rent in advance for tenancies with rental periods of less than one month, as is standard practice. This rule applies to all new tenancies and is enforceable by local authorities.

However

  • You cannot ask for multiple months’ rent upfront as a condition of letting.
  • You must not use rent in advance as a substitute for a deposit or as a way to bypass affordability checks.
  • A tenant may still choose to pay rent early but this cannot be requested by the landlord.

Landlord protections

The Bill will still ensure that landlords are not left out of pocket if a pet causes damage, and that tenants remain responsible for the property whilst keeping a pet.

Under the Bill, landlords can require tenants to

  • Take out pet insurance to cover potential damage.
  • Agree to reasonable conditions (e.g. cleaning requirements, limits on pet numbers).
  • A tenancy deposit can be used to pet-related damages, but landlords should not attempt to recover costs twice for the same damage
  • If insurance and deposit do not cover the cost of the damage, a landlord may be able to take a tenant to court to recoup the costs

Updating tenancy agreements

Landlords should review and update their tenancy agreements to reflect the new rules. Letting agents should also ensure their processes are aligned with the new legislation.

This includes

  • Adding a clause for pet requests and conditions.

  • Outlining the process for applying and responding.

  • Including any insurance or maintenance requirements.

Got a question about your rental property?

If you have any questions for our team about the Renters' Rights Bill and what it means for you as a landlord, please contact your nearest lettings branch or fill in your details below and we'll get back to you. 

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