Picky landlords warned: an empty month costs £1,466

Landlords in England are turning away tenants they would have waved through a year ago. Fresh industry research from lettings software firm Goodlord, trailed in the trade press this week, says owners and agents have become noticeably more cautious about who they accept since the Renters’ Rights Act reforms started on 1 May 2026.

Being careful is sensible. Being so careful that the property sits empty is not. With the average private rent in England now £1,466 a month, every empty month costs the typical landlord close to £1,500 in rent that never comes back, while the mortgage, insurance and council tax keep going out.

This guide is for landlords letting in England. It covers what the new rules stop you doing, the checks you can still lawfully run, and how to work out whether holding out for a “perfect” tenant is worth the money. Use our calculator to run your own numbers.

Why landlords are saying no

Goodlord’s annual State of the Lettings Industry research polls agents, landlords and tenants. Coverage of this year’s edition describes landlords as more willing to reject applicants and agents as more cautious about which applicants they recommend. Some landlords say they would rather wait with an empty property than take on someone they see as higher risk.

The reasons are not hard to find. Fixed terms have been replaced by rolling periodic tenancies, so landlords feel less sure they can leave a tenancy that goes wrong. On top of that, the old safety valve for riskier applicants, taking several months’ rent up front, has largely gone.

Those hit hardest are students, people moving from abroad with no UK credit history, and self-employed or contract workers with uneven income. Before May, many of them got a home by paying six or twelve months up front. Most of that option no longer exists.

The rent in advance rules that changed everything

The Act tackles rent in advance in two ways. First, section 9 amends the Tenant Fees Act 2019 so that rent paid before an assured tenancy is entered into is a prohibited payment. Landlords and agents in England must not invite, encourage or accept it.

Second, section 8 adds a new section 4B to the Housing Act 1988. Any tenancy term making rent due before the rent period it covers has no effect. The one exception is “initial rent” for the first rent period (or periods ending within the first 28 days), which can fall due between signing and the start date.

In plain English, government guidance for landlords says the most you can usually ask for before the tenancy starts is one month’s rent, or 28 days’ rent for non-monthly tenancies. Larger sums are allowed only where the council arranged the tenancy because the tenant was legally homeless, or the home is social or supported housing.

Once the tenancy has started, guidance says a tenant can choose to pay rent early, but you cannot make them. A student who wants to pay a term in advance can do that. You cannot make it a condition of the let.

If you break these rules, a council can require you to repay the money. Under section 8 of the Tenant Fees Act 2019, which now covers the pre-tenancy rent ban, it can also fine you up to £5,000.

What you can no longer do

Becoming more selective is lawful. Being selective in the wrong way is now expensive. Here is the line in England:

Repeat offences add up quickly. The discrimination guidance says a further penalty of up to £7,000 can be charged for every 28 days the conduct continues after a final notice. A repeat breach within five years can bring a second £7,000 on top of the first.

How to assess risk lawfully

The government’s guidance is clearer than many landlords assume. You can still check whether the rent is affordable. Your income requirement just has to be the same for everyone, and it has to count all income, including benefits and pensions, in the same way.

• Referencing: credit, identity, employment and previous landlord checks are all still fine. Ignoring benefit income in the affordability sum is not.
• Income multiples: referencing firms commonly want gross annual income of around 30 times the monthly rent. One provider’s published criteria set 30x for tenants and 36x for guarantors. This is an industry convention, not a legal rule.
• Guarantors: you may ask every applicant for one. You must not ask only benefit claimants.
• Rent guarantee insurance: you can use it, but you must not make it a condition only for benefit recipients. Insurance taken out before 1 May 2026 that excludes families or claimants loses that exclusion when it renews or ends.
• Deposit: up to 5 weeks’ rent where annual rent is under £50,000 (6 weeks at £50,000 or more), held in a government-approved protection scheme.

Worked example: a flat lets at £1,466 a month. A 30x rule means the applicant needs gross income of £43,980. An applicant earning £38,000 falls £5,980 short. Under a 36x rule, a guarantor would need £52,776. If you ask every applicant for a guarantor where they fall short, you are applying the rule equally. That is both lawful and sensible.

The 5-week deposit on that flat is £1,691. That is roughly five weeks of arrears cover before you even claim on insurance. It is a useful buffer when you consider an applicant who doesn’t quite fit the textbook profile.

The real cost of an empty property

A void is a guaranteed loss. A higher-risk tenant is only a possible one. That is why waiting is often the costlier choice. How much a void costs depends heavily on where the property is.

Worked example: take an England-average flat at £1,466 a month, which is about £338 a week. If you leave it empty for six weeks waiting for a “perfect” applicant, you lose about £2,030 in rent. Meanwhile you still pay the mortgage and running costs, say £950 a month or about £1,315 over those six weeks, with nothing coming in.

Now look at the applicant you turned down. Suppose you judge there is a 15% chance they fall two months behind, and recovering it costs £1,000. After the 5-week deposit is used against the arrears, the expected cost is about £336. Waiting costs roughly six times as much as the risk you were trying to avoid.

The guesses in that example are yours to change. The method holds either way: compare a certain loss with a probability-weighted one, and count the deposit as part of your protection.

Calculator: empty vs let

What to do now

If you have a property coming up for re-let, work through these steps before you advertise.

1. Write your criteria down. Set one income multiple, one guarantor rule and one referencing standard, and apply them to every applicant.
2. Count all income equally. Benefits, pensions and other income go into the affordability sum like salary does.
3. Advertise one fixed rent. No price ranges, no “offers over”, and never accept or encourage offers above the advertised figure.
4. Take money in the right order. Take a holding deposit (maximum 1 week), then sign the agreement. Only after signing take up to one month’s initial rent, plus a deposit of up to 5 weeks.
5. Check your insurance and mortgage. Discriminatory terms in mortgages and superior leases were cancelled from 1 May 2026. Insurance exclusions end at renewal.
6. Price the void before you say no. Run the calculator above for any applicant you are unsure about.

• Written letting criteria, applied identically to all applicants
• Advert shows one specific rent, not a range
• No wording such as “no DSS”, “no benefits” or “no children”
• Holding deposit capped at 1 week’s rent
• No rent taken before the tenancy agreement is signed
• Initial rent capped at one month (or 28 days)
• Deposit within the 5-week cap and protected in an approved scheme
• Guarantor and insurance requirements the same for every applicant
• Reasons for any refusal recorded in writing

Scope: everything above applies to private lets in England. Wales and Scotland have their own tenancy laws, so landlords there should check the rules for their nation.

FAQ

Can a landlord still ask for 6 months’ rent in advance?

Not in England for a new assured tenancy. You cannot take rent before the agreement is signed, and you can usually take no more than one month (or 28 days) between signing and the start date. A tenant can choose to pay early once the tenancy has started, but you cannot require it.

Can I still reject a tenant who fails referencing?

Yes. You can refuse an applicant who fails a fair, consistently applied affordability or credit check. What you cannot do is refuse because they have children or receive benefits, or set tougher conditions only for those groups.

Can I ask for a guarantor under the Renters’ Rights Act?

Yes, as long as the requirement applies to all applicants. Government guidance says asking only benefit recipients for a guarantor is discrimination.

What is the fine for refusing tenants on benefits?

A council can fine you up to £7,000 for a first breach. Further penalties can follow if the conduct continues, or if you repeat it within five years.

Is the 30 times rent rule a legal requirement?

No. It is a common referencing convention. You can use a different multiple, but it must be the same for everyone and must treat benefit income like any other income.

How much does an empty rental property cost?

At England’s average rent of £1,466 a month, each empty week costs about £338 in lost rent, and you still pay the mortgage and bills. Use the calculator above for your own property.