I draw your attention to an excellent article in Property118 regarding the potential problems of unpaid rent under the Renters’ Rights Act, especially for students.

The whole article can be seen here, and in summary explains that the new rules under the Renters’ Rights Act 2025 could leave landlords facing significant financial risk if a tenant fails to pay the first month’s rent, even where long-standing safeguards have been followed.

A common practice – taking the first month’s rent before handing over keys – is now legally dangerous once a tenancy agreement has been signed. While landlords can still request and accept one month’s rent during the permitted pre-tenancy period, they cannot refuse to hand over keys after the tenancy has been “entered into”, even if no rent has been paid. Doing so risks civil penalties of up to £40,000, as it may amount to unlawful exclusion under the Protection from Eviction Act 1977.

If a tenant moves in without paying rent, the landlord’s options are limited and slow. A Section 8 notice under Ground 10 (rent arrears) can be served quickly, but it is discretionary and the court may allow the tenant more time to pay. Mandatory possession under Ground 8 is only available once three months’ rent arrears have built up – and those arrears must still exist at the hearing.

A worked example shows how a tenant could, in practice, occupy a property rent-free for up to eight months before eviction is finally enforced, while the landlord continues to cover mortgage payments, insurance and legal costs.

Despite warnings during the Bill’s passage through Parliament, these risks remain unresolved. The changes highlight a growing imbalance in the system and raise serious concerns for landlords – particularly student and shared housing providers – about cashflow, enforcement delays and exposure to deliberate non-payment.