The Tenant Fees Act 2019
Since 1 June 2019, letting agents and landlords in England can only charge tenants for a small set of permitted payments. Everything else is banned. Wales introduced similar rules in September 2019. Scotland has had similar protections since 2012.
The Act applies to assured shorthold tenancies, student lets, and licences to occupy. It covers both new tenancies and renewals.
What's banned
Under the Act, a landlord or agent cannot charge a tenant for:
- Viewing fees — charging to view a property is illegal
- Tenancy setup or admin fees — including inventory checks, referencing, credit checks, and contract preparation
- Check-out or checkout fees — unless it's a genuine professional clean you agreed to in writing
- Renewal fees — no fee for extending or renewing a tenancy
- Third-party fees — referencing agencies, inventory clerks, guarantor checks — all on the landlord, not the tenant
- Gardening or maintenance charges — unless it's a genuinely optional service you requested
Permitted payments — what they CAN charge
The only payments a landlord or agent in England can require from a tenant are:
- Rent
- A refundable tenancy deposit — capped at 5 weeks' rent for annual rent under £50,000; capped at 6 weeks' rent for annual rent of £50,000 or above
- A refundable holding deposit — capped at 1 week's rent
- Changes to the tenancy — capped at £50 (or reasonable costs) if the tenant requests a change, such as a new sharer
- Early termination — reasonable costs if the tenant leaves early (capped at the loss incurred by the landlord)
- Council tax, utilities, TV licence, and communication services
- Default fees — late rent interest (capped at 3% above Bank of England base rate) and replacement keys (at cost)
Any payment outside this list is a prohibited payment under the Act.
Holding deposits in detail
A holding deposit is a payment to reserve a property while references are checked. The key rules:
- Cap: Maximum 1 week's rent. Calculate it as annual rent ÷ 52. So for £1,200/month (£14,400/year), the maximum holding deposit is £276.92.
- One holding deposit at a time: An agent cannot hold deposits from multiple applicants for the same property.
- Must be refunded: If the landlord pulls out, changes the terms, or the tenancy doesn't go ahead through no fault of the tenant.
- Can be retained only if: The tenant provides false or misleading information, fails a right to rent check, or withdraws from the process without a good reason.
The 15-day deadline
Once a holding deposit is paid, the landlord has 15 days (the "deadline for agreement") to enter into a tenancy agreement — unless both sides agree to extend. If the tenancy doesn't happen and it's not the tenant's fault, the holding deposit must be refunded within 7 days of the deadline passing or the landlord pulling out.
If the landlord retains the holding deposit, they must give the tenant a written explanation of why — within 7 days.
What to do if you're charged a banned fee
If an agent or landlord charges a prohibited payment:
- Ask for it back — in writing. The landlord must refund it within 7 days for a holding deposit or 28 days for other prohibited payments.
- Contact the local council's trading standards if they refuse. The council can issue a fine of up to £5,000 (or £30,000 for repeat offences).
- First-tier Tribunal — tenants can apply directly for a refund order through the Property Chamber. No court fees required.
The landlord cannot serve a valid Section 21 eviction notice until any prohibited payment has been repaid. This means ignoring a banned-fee refund request actually weakens their legal position.
Fee-charging agents: worth a check
An agent charging illegal fees is either ignorant of the law or deliberately ignoring it. Both are worth knowing before you sign a tenancy. Running a Companies House check on the agent's company can reveal whether they have a trading history with complaints, dissolved entities in the director's past, or other risk factors.