Tenant Fees Act: A complete guide to banned and permitted fees

What is the Tenant Fees Act?

The Tenant Fees Act sets out the Government’s approach to banning letting fees paid by tenants in the private rented sector. Introduced in England on 1 June 2019, the legislation prohibits landlords and letting agents from charging most administrative and letting fees to tenants.

Before this legislation, tenants often faced unexpected costs when signing a new contract or moving out of a property. The Tenant Fees Act fixes this by banning most administrative and setup fees. Because of this law, tenants can look at an advertised rental price and know exactly what the property will cost them.

Letting fees are already banned in Scotland and Northern Ireland. In Wales, the Renting Homes (Fees etc.) (Wales) Act 2019 came into force in September 2019. This bans landlords and letting agents from charging most extra fees to tenants under standard occupation contracts. For more details, you can visit the Welsh Government’s tenant guidance and the landlord and agent guidance.

You can also find additional information and guidance for Scotland and Northern Ireland at Shelter Scotland and Shelter Northern Ireland.

For landlords and agents, the law provides a clear framework of permitted payments. The core protections of the Tenant Fees Act remain firmly in place alongside the new Renters’ Rights Act 2025, which comes into effect on 1 May 2026.

 

What fees are banned under the Tenant Fees Act?

The law works on a very simple principle. If a fee is not on the official list of permitted payments, it is automatically illegal. Landlords and letting agents cannot charge you for the following things:

For a full list of permitted and prohibited fees visit the GOV.UK website for guidance. 

While landlords cannot force you to pay for a professional cleaning service when you leave, you still have a responsibility to return the property in the same state of cleanliness as it was when you moved in. If you leave the property dirty, the landlord can request a deduction from your deposit to cover the cleaning costs, factoring in fair wear and tear.

 

What fees can landlords legally charge?

The law provides a strict list of permitted payments. These are the only charges that landlords and letting agents can lawfully request from a tenant.

 

Rent and permitted utility bills

You must pay your agreed rent at the regular intervals set out in your tenancy agreement. You are also responsible for paying the bills associated with living in the property, unless your tenancy agreement specifically says your rent includes them. These permitted payments include council tax, gas, electricity, water, broadband, and a television licence.

 

Tenancy and holding deposit

Tenancy deposit is a capped, refundable security deposit protected in a deposit protection scheme while a holding deposit is a capped, refundable deposit to reserve the property. Find out more details in our holding deposit rules.

 

Changes to the tenancy agreement

If you ask your landlord to change your tenancy agreement, they can charge a fee for the administrative work involved. Common changes include asking to add a new pet to the household or swapping a tenant on a joint contract.

The law caps this fee at fifty pounds. A landlord can only charge more than fifty pounds if they can prove their actual costs were higher.

 

Early termination charges

If you ask to leave your contract before your agreed notice period ends, the landlord does not have to agree. If they do agree to let you break the contract early, they can charge you an early termination fee. This fee covers the financial loss the landlord suffers because you are leaving early.

The landlord can legally ask you to cover the rent until a new tenant moves in, as well as the reasonable costs they incur to find that new tenant. However, the total early termination fee cannot be more than the total amount of rent you would have paid if you had stayed for your full notice period.

 

Default fees for breaches of contract

A landlord can charge a default fee if you break the rules of your tenancy agreement, but only in two very specific situations:

  • Lost keys: If you lose a key or a security device, the landlord can charge you the reasonable cost of a replacement. They must provide a receipt to prove the cost
  • Late rent: If your rent is more than fourteen days late, the landlord can charge interest on the overdue amount. The interest rate is capped at three percent above the Bank of England base rate

 

For advice on getting your deposit back at the end of your tenancy, visit our how to get your deposit back page. If you can’t agree on deductions, check out our dispute resolution service for support.

 

Tenancy deposits and holding deposits

The law completely separates the holding deposit you pay to reserve a property from the main tenancy deposit you pay to protect against damages.

 

Tenancy deposit caps

The law places a hard limit on the maximum amount of money a landlord can take as a security deposit. These caps depend entirely on your annual rent.

  • If your total annual rent is less than fifty thousand pounds, the maximum deposit is five weeks of rent.
  • If your total annual rent is fifty thousand pounds or higher, the maximum deposit is six weeks of rent.

Landlords must protect this money in a government-authorised scheme within thirty days of receiving the funds. They must also give you specific legal paperwork, known as the prescribed information, within that same window. Knowing these rules helps you understand how to get your deposit back at the end of your tenancy.

 

Calculating tenancy deposits following the tenancy deposit cap 

  • You can calculate the total weekly rent using the following steps: 
  • Step 1 – Monthly rent x 12 = annual rent  
  • Step 2 – Annual rent ÷ 52 = weekly rent  
  • Step 3 – Weekly rent x 5 or 6 = maximum deposit  

Our deposit calculator is free to use and will help you work out the maximum deposit amount you can take. We recommend all our members use this tool to help with the calculations and to make sure you protect the right amount.  

For more information read Tenancy deposit cap rules: England. 

All landlords must protect this money in a government-authorised scheme and provide the tenant with the prescribed information within 30 days of receiving the funds. If there is a dispute over deductions, visit our dispute process for help.

There is no formal cap on deposits in Wales. In Scotland, the amount that can be charged as a deposit cannot be more than two months’ rent. 

In Northern Ireland the Private Tenancies Act (Northern Ireland) 2022 came into force in April 2023. This means that tenants can no longer be asked to pay a tenancy deposit of more than one month’s rent and the time a landlord has to protect a tenancy deposit and provide the required information to a tenant has increased. More information is available here.   

 

Holding deposit rules

A holding deposit is a small payment you make to reserve a rental property while the agent completes references and prepares the paperwork. Under the holding deposit rules, this payment is strictly capped at a maximum of one week of rent.

Once your tenancy begins, the landlord must either refund the holding deposit directly to you or put the money towards your first month of rent or your main security deposit. If the landlord decides not to rent the property to you, they must refund the holding deposit in full within seven days.

 

Join mydeposits

mydeposits makes deposit protection straightforward, offers helpful guidance, and provides expert dispute resolution. Whether you’re a tenant, landlord, or agent, membership gives you access to industry-leading resources and peace of mind that you’re meeting the latest legal requirements. Learn more and join the mydeposits community today.

How the Tenant Fees Act fits with the Renters’ Rights Act

The government is introducing the Renters’ Rights Act to bring major changes to the private rented sector from 1 May 2026. The strict rules around banned fees, default charges, and deposit caps under the Tenant Fees Act will continue to protect tenants under this new system. You can read the official overview for tenants on GOV.UK.

The biggest change involves the structure of tenancy agreements. Fixed-term contracts will disappear entirely, and all tenancies will become rolling Assured Periodic Tenancies. This means you will not face tenancy renewal fees, and you can end your tenancy by giving two months of written notice.

Additionally, the new law limits how much rent a landlord can ask for upfront. Landlords will only be able to request a maximum of one month of rent in advance. You can read more about these changes for private tenants on the Shelter website.

If you are a landlord preparing for these changes, you can read our Renters’ Rights Act readiness checklist to help you stay compliant.

What are the penalties for non-compliance with the Tenant Fees Act? 

Penalties for non-compliance with the Tenant Fees Act are clear and severe. It is important to understand what fees are permitted and remind yourself that if a fee is not on the above list, it is prohibited.   

Breach of legislation will usually be a civil offence carrying a financial penalty of up to £5,000 per fee. Despite this, if a further breach is committed within five years of a financial penalty or if there is a conviction for another breach, this becomes a criminal offence. 

The penalty imposed for a criminal offence – a banning order offence under the Housing and Planning Act 2016 – is an unlimited fine. 

According to GOV.UK “Where an offence is committed, local authorities may impose a financial penalty of up to £30,000 as an alternative to prosecution.” It is down to the local authority’s discretion as to whether they wish to prosecute or impose a financial penalty. 

Failure to repay a tenant’s holding deposit will be treated as a civil offence and carries a penalty of up to £5,000. 

In addition, landlords and agents who have charged an unlawful fee will not be able to evict a tenant until they have repaid these fees. Failure to comply with the legislation can therefore have serious ramifications. Penalties will be enforced by trading standards and tenants can apply to the First Tier Tribunal for a refund of a prohibited fee. 

If in doubt it is advisable to seek clarification from GOV.UK. In addition, landlords, letting agents and tenants can read the government’s comprehensive ‘Tenant Fees Act 2019: guidance’ here. For more information on landlord fines, Total Landlord, also powered by Total Property, has a comprehensive guide, Landlord fines: How much are the charges and how do you avoid them? 

 

Penalties for failure to comply with the Renting Homes (Fees etc.) (Wales) Act 2019   

Landlords should be aware that the penalties for failing to comply with the Renting Homes (Fees etc.) (Wales) Act 2019 are distinct from their equivalent in England.  

An enforcement authority can issue landlords or letting agents a fixed penalty notice of £1,000 for the offences of: 

  • requiring a tenant to make a prohibited payment 
  • requiring a tenant to enter into a contract for services in relation to a tenancy 
  • requiring a tenant to make a loan in relation to a tenancy.  

An enforcement authority may choose to prosecute which, if convicted, may result in a fine (not subject to any statutory limit) for: 

  • requiring a tenant to make a prohibited payment 
  • requiring a tenant to enter into a contract for services in relation to a tenancy 
  • requiring a tenant to make a loan in relation to a tenancy 
  • providing false or misleading information in relation to a notice issued seeking information.  

An enforcement authority may choose to prosecute an offence if there is a failure to comply with a notice issued under section 10 of the Act. A person who commits an offence under section 11(1) is liable on conviction to a fine not exceeding level 4 on the standard scale (at the time the guidance is issued, the current maximum is £2,500). 

The Welsh Government’s Letting fees guidance for landlords and letting agents provides full details. 

  • FAQs

    We answer some of the most common questions about the Tenant Fees Act to help you understand your rights and responsibilities.

    • What is the Tenant Fees Act?

      The Tenant Fees Act is a piece of legislation introduced in 2019 in England that prevents landlords and letting agents from charging tenants unjustified letting fees. It restricts payments to a small list of “permitted payments”, such as rent and capped deposits. For tenants, it’s important to understand which fees are banned and what landlords can legally request. If you have concerns about your deposit, you can check if it is protected using the mydeposits tenant tools, learn more about tenancy deposit protection, or seek support via the dispute resolution service in case of fee or deposit disagreements.

    • What fees are banned?

      Most administrative and setup fees are banned under the Act. This includes charges for property viewings, referencing and credit checks, inventory creation (both check-in and check-out), drawing up tenancy agreements, and compulsory professional end-of-tenancy cleaning.

    • What can landlords charge?

      Landlords can legally charge rent, a capped holding deposit, a capped tenancy deposit, default fees for lost keys or late rent, utility bills, and reasonable fees for tenant-requested changes to the contract or early termination. If you have questions about tenancy deposit protection or the process for end-of-tenancy returns, visit our page on how to get your deposit back. For disputes over deductions or charges, our dispute process and dispute resolution service can provide guidance.

    • What happens if landlords break the rules?

      Landlords who charge a banned fee face a fine of up to £5,000 for a first offence. Repeat offenders can face unlimited criminal fines. Furthermore, landlords cannot evict a tenant using a Section 21 notice until any unlawfully charged fees or excessive deposits are fully refunded. If you think your landlord has breached the rules or if there is disagreement over fees or deposit returns, you can use the mydeposits dispute process or seek support with our impartial dispute resolution service to help resolve the issue. For more information on claiming a deposit back, see our detailed guide on how to get your deposit back.

    • What is a holding deposit?

      A holding deposit is a payment you make to reserve a rental property while the landlord checks your references. It is legally capped at one week of rent. Once the tenancy starts, the landlord must refund it or put it towards your rent or main deposit.

Need more guidance on private rented sector legislation and the Renters Rights Act? 

Since it came into force on 1 June 2019, all landlords and agents have been expected to comply with government guidelines relating to the Tenant Fees Act. Changing regulation and the introduction of new legislation can be confusing, but it is imperative to get it right from the start. We recommend subscribing to LandlordZONE, also powered by Total Property, to keep up to date with private rented sector news. And for more information on the latest developments relating to the Renters (Reform) Bill, visit Total Landlord’s Renters Rights Act Hub

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