How much can landlords take as a holding deposit or rent in advance?
A holding deposit reserves a property while checks are done and is capped at one week's rent. Tenancy deposits are capped at five weeks' rent, or six where annual rent is between £50,000 and £100,000. Since 1 May 2026, landlords cannot demand rent before the tenancy agreement is signed, and can ask for no more than one month's rent in advance before it starts.
Read more in our guide: Selling a portfolio with tenants
Upfront payment limits
| Payment | Limit |
|---|---|
| Holding deposit | 1 week's rent |
| Holding deposit refund | Usually within 7 days if the let does not go ahead |
| Tenancy deposit | 5 weeks' rent (6 if annual rent is £50,000 to £100,000) |
| Rent before signing | Not allowed from 1 May 2026 |
| Rent after signing, before start | Up to 1 month |
| Other fees | Banned except permitted payments |
Holding deposits
Under the Tenant Fees Act 2019, a holding deposit can be no more than one week's rent. If the tenancy goes ahead it is put towards the first rent or deposit. If it does not, it must normally be refunded within 7 days, unless the applicant gives false information, fails a right to rent check, withdraws, or fails to take reasonable steps to agree the tenancy by the deadline.
Tenancy deposits
The deposit cap is five weeks' rent where annual rent is under £50,000, and six weeks between £50,000 and £100,000. Every deposit must be protected in an approved scheme within 30 days, with prescribed information served; see tenancy deposit protection.
The rent in advance limit
The Renters' Rights Act 2025 stops landlords asking for or accepting rent before a tenancy is agreed. Once it is signed, they can take up to one month's rent before the start date. Landlords can no longer require six or twelve months upfront, which affects students, people new to the UK and others without a UK credit history; guarantors are now the main alternative.
On a sale
Deposits move to the buyer and must stay protected. Buyers check that deposits were capped, protected on time and that no banned fees were taken, because tenants can recover unlawful payments and penalties apply. Record every upfront payment in the tenancy file.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A holding deposit reserves a property while checks are done and is capped at one week's rent. Tenancy deposits are capped at five weeks' rent, or six where annual rent is between £50,000 and £100,000. Since 1 May 2026, landlords cannot demand rent before the tenancy agreement is signed, and can ask for no more than one month's rent in advance before it starts.
The landlord must not require or accept it before the tenancy is agreed. After signing, only up to one month can be taken before the start.
No. Referencing, inventory and admin fees are banned under the Tenant Fees Act.
Any excess over the cap must be refunded. Take advice if a current tenancy is affected.
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