Stratfords’ RRA Series – Part 2

Part 2: rent in advance & a ban on bidding
Confirmed implementation: 1st May 2026

Taking rent up front will be against the Renters’ Rights Act. Rent in advance is divisive, with some seeing it as an effective way for those without regular income to secure a home, and others deeming it an unfair practice. Either way, it will be banned for new tenancies from 1st May 2026.

Also banned from 1st May 2026 is bidding. We cannot ask for rent higher than what’s advertised, nor can we encourage potential tenants to offer above the asking price. Accepting a higher offer would be against the law too.

Our opinion
The ban on upfront funds is unlikely to have much impact on how we find suitable tenants. Receiving rent in advance is rare at Stratfords, and only ever when it’s been suggested by the applicant, not by us. On the very few occasions where it has been offered, this is normally because a tenant is struggling to prove their income (e.g., they’re self-employed), or is relying on savings to pay the rent (e.g., they’re retired).

The ban on bidding should have zero impact on any of our landlords. We’ve almost never had anyone bid over the market rent for a property, and other agents we’ve spoken to in our region say the same. This change is possibly area-related, aimed at the London market where bidding is more prevalent.

How we’re preparing for these changes:
•    We’re well aware of the alternatives to rent in advance (e.g., guarantors, landlord insurance) and can advise both landlords and tenants on their options.
•    We’re trialling a new company guarantor programme where tenants pay a fee for a guarantor, and that company then guarantees the rent. This will be far more effective than a regular guarantor, and means we can still let homes to self-employed tenants, retirees, etc., who may struggle otherwise.
•    Some agents use rent in advance as a differentiator between potential tenants. At Stratfords, we let homes to the most suitable party, looking at the results of our rigorous checks, considering a range of factors, and using experience built from our 30 years in business.
•    We price properties properly, according to local and national data, and taking all nuances into account. We then market them in their best light, to achieve the best price.

Part 3: periodic tenancies – coming next week…

To read the government guide to the Renters’ Rights Act, click here.