Agent fee transparency and compliance — Tenant Fees Act

The Tenant Fees Act 2019 came into force on 1 June 2019 for new tenancies, and from 1 June 2020 it applied to all existing tenancies. It fundamentally changed fee structures for letting agents in England by banning the vast majority of charges that could previously be passed to tenants. Reviewed March 2026.

What the rule is

The Tenant Fees Act 2019 makes it a criminal offence for a landlord or letting agent to charge a tenant a “prohibited payment.” It also requires that all agents — regardless of whether they charge tenants at all — publish a full schedule of fees on their website and display it in any office open to the public. This display obligation comes from the Consumer Rights Act 2015 and predates the Tenant Fees Act, but both now apply simultaneously.

Permitted payments (the only charges agents may pass to tenants):

1. Rent — the agreed rent amount (agents cannot charge a higher rent in the first period to recover other costs)
2. Refundable tenancy deposit — capped at five weeks’ rent (or six weeks’ rent where annual rent exceeds £50,000)
3. Refundable holding deposit — capped at one week’s rent; must be returned within 15 days unless the tenant withdraws, fails referencing, or provides false information
4. Default fees — late payment of rent (only after 14 days overdue, at 3% above Bank of England base rate) and replacement keys/security devices (reasonable costs only, with written evidence)
5. Change of tenancy fee — capped at £50 (or reasonable costs if higher, evidenced in writing) for a tenant-requested change such as adding or removing a joint tenant
6. Early termination fee — only if the tenant requests early surrender; capped at the landlord’s genuine loss (e.g. re-letting costs and lost rent to the point of re-letting)

Everything else — admin fees, referencing fees, check-in fees, check-out fees, tenancy renewal fees, credit check fees, guarantor arrangement fees, professional cleaning requirements — is prohibited when charged to tenants.

When it applies

The Act applies to all assured shorthold tenancies, student accommodation lettings, and licences to occupy residential property in England where a payment is required in connection with the tenancy. It applies to both landlords and letting agents.

The fee schedule publication requirement applies to all letting agents in England — even those who charge no tenant fees at all. The requirement is to publish the fees (or confirm there are none) clearly and accessibly.

What landlords/agents must do

Publish a fee schedule:

• On the agent’s website, clearly accessible and not hidden in terms and conditions
• In any office open to the public, in a prominent position
• The schedule must cover fees charged to both tenants and landlords (two separate sections)
• The schedule must be up to date; any change in fees must be reflected promptly

For landlord fees: Agents may charge landlords whatever is commercially agreed. There is no statutory cap on landlord fees. However, the landlord fee schedule must also be published on the website and in-office — this is the Consumer Rights Act 2015 obligation, separate from the Tenant Fees Act.

Holding deposits: When taking a holding deposit, agents must clearly inform the tenant in writing of the circumstances in which the holding deposit will not be returned (namely: tenant withdraws, fails a Right to Rent check, provides false or misleading information, or fails to enter the tenancy within the deadline for agreement).

What evidence to keep

• Dated copies (screenshots or prints) of the published fee schedule at the time of each tenancy
• Records of any holding deposits taken, including the deadline for agreement and the outcome
• Evidence of any default fees charged (receipts for key replacement, rent arrears records with date calculations)
• Records of any change-of-tenancy or early termination fees, with cost evidence

Common mistakes

Charging tenants for referencing. Referencing fees charged to tenants are prohibited. The cost of referencing must be absorbed by the agent or passed to the landlord.

Requiring professional cleaning. A tenancy agreement clause requiring tenants to pay for professional cleaning at the end of the tenancy is unenforceable under the Tenant Fees Act. Cleaning costs can only be claimed from the deposit if the property is genuinely left in a worse condition than at move-in.

Not publishing landlord fees. The Consumer Rights Act 2015 requires both the landlord fee schedule and any tenant-facing charges to be published. Many agents focus only on tenant fees and overlook the obligation to publish landlord fees.

Taking holding deposits above the cap. Any holding deposit above one week’s rent is a prohibited payment. Agents must calculate one week’s rent accurately before taking any holding deposit.

Failing to return a holding deposit within 15 days. If no tenancy agreement is concluded and the tenant has not withdrawn or failed referencing, the holding deposit must be returned within 15 days of the deadline for agreement.

FAQ

Can agents still charge landlords for all services? Yes. The Tenant Fees Act restricts what agents can charge to tenants and to people acting as guarantors. There is no statutory restriction on fees charged directly to landlords, though these must be transparently published.

What is the penalty for charging a prohibited payment? A first offence is a civil penalty of up to £5,000. A second offence (within five years of the first) is a criminal offence carrying an unlimited fine, and the agent may also face removal from any redress scheme.

Does the Act apply to company lets? The Tenant Fees Act applies to assured shorthold tenancies. A corporate tenancy where the tenant is a company (rather than an individual) is typically outside the scope of the Act, as it will not be an AST. However, agents should take legal advice on specific arrangements.

What if a tenant agrees in writing to pay a prohibited fee? Any agreement to pay a prohibited payment is unenforceable — the tenant can reclaim the money and the agent can still be penalised. Written consent does not make a prohibited fee lawful.

Can renewal fees be charged? No. Tenancy renewal fees charged to tenants are prohibited payments. An agent may charge the landlord a renewal fee, but cannot charge the tenant to renew their tenancy.