Connells and London Residential Group (LRG) say the Renters Rights Act one-month cap on rent in advance is shutting vulnerable tenants out of homes, with nurses, poor-credit renters and international students worst hit.
The Act limits rent in advance to one month, removing the option for tenants to offer several months upfront to offset weak references. Connells chief executive Helen Charlesworth and LRG chief lettings officer Allison Thompson raised separate warnings this week, saying landlords are now refusing borderline applications they would once have accepted.
The rule was designed to cut moving costs, yet agents report it has removed the safety valve that let risky applications proceed. With Section 21 gone, owners who cannot take extra cash upfront are choosing the safest reference instead, leaving the tenants the reform was meant to help with fewer offers.
Nurse with 12 months savings left without a home
Helen Charlesworth told The Negotiator that a nurse she knows was served a Section 21 notice before the Act took effect and then failed to secure a new home despite holding 12 months rent in savings. The mother of three had paid rent on time but had a poor credit rating, and without the ability to pay upfront she could not pass referencing or buy.
Charlesworth said the case shows ordinary working renters are being harmed: one of the nation’s nurses is now effectively homeless because landlords cannot accept the lump sum that would have covered their risk. She said Connells is passing such examples to government contacts to press for a rethink.
Allison Thompson, writing in a blog also published this week, said the ban has been a particular problem for international students, who previously offered several months rent in advance where UK guarantors or credit histories were missing. She said that with RRA reshaping landlord sale and reletting plans in London, many owners are less willing to take a chance without that cushion.
Landlords pick clean references as risk cover shrinks
Agents say the pattern is consistent across high-demand areas. Where two applicants chase one home, the tenant with a UK guarantor, strong credit file andPAYE income wins, while the self-employed applicant, the recent arrival or the tenant rebuilding credit loses out. Before May, extra rent in advance could bridge that gap. Now it cannot be requested or accepted beyond the one-month cap.
This follows Landlord Knowledge’s reporting on August survey finding only 23 percent of landlords know about the mandatory database, which showed many owners entered the new regime unsure of the full rulebook. The latest agency warnings suggest knowledge gaps have been replaced by caution, with referencing tightened further than the law requires.
The law still allows tenants to pay rent early voluntarily once the tenancy has started, but landlords and agents cannot ask for it as a condition of grant. Industry bodies say the distinction is hard to police in practice, and most large groups have told branches not to accept upfront offers at application stage. Further detail sits in the government Renters Rights Act collection.
What this means for landlords
- If you let to students or new arrivals: rework your referencing pass marks now, as upfront cash can no longer cover a thin credit file.
- If you relied on six months upfront: replace it with a UK guarantor, higher-Affordability threshold or rent guarantee insurance that accepts your tenant type.
- Document every decision: keep referencing results and refusal reasons, as discrimination claims rise when choice narrows to clean files.
- Watch for a policy tweak: agents are lobbying for exemptions for international students and poor-credit workers with proven savings – check terms before changing practice.
- Bottom line: do not solicit extra rent upfront to de-risk a let, even if the tenant offers it at viewing – the request itself can breach the cap.
Editor’s view
Good intentions are producing harsh outcomes. Banning large upfront payments helps tenants with cashflow, but it hurts those with savings and weak paperwork. Until ministers carve out a lawful workaround, landlords will keep picking the lowest-risk file on the pile.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 26 October 2026
Sources: The Negotiator, Connells, LRG, UK Government
Related reading: Winkworth reveals sale valuations surge on 12-month rule
