Fees landlords can charge — Tenant Fees Act rules

This guide sets out exactly what payments England landlords and agents are permitted to charge tenants under the Tenant Fees Act 2019, and what is prohibited. Reviewed March 2026.

What the rule is

The Tenant Fees Act 2019 came into force on 1 June 2019 and applies to all new Assured Shorthold Tenancies and student tenancies in England. It creates a restricted list of permitted payments. Anything outside that list is a prohibited payment, regardless of whether the tenant agreed to it.

Receiving a prohibited payment is a civil offence. Local housing authorities are responsible for enforcement. The penalty for a first breach is up to £5,000. Repeat breaches within 5 years can be prosecuted as a criminal offence, potentially resulting in an unlimited fine.

Landlords who accept a prohibited payment must refund it. A landlord who has accepted a prohibited payment cannot serve a valid section 21 notice (prior to abolition on 1 May 2026) until the payment has been refunded.

Permitted payments

The Act permits only the following six categories of payment:

1. Rent The rent specified in the tenancy agreement. Rent cannot be structured to disguise prohibited fees — for example, charging a high first month’s rent and then a lower ongoing rent to extract an effective premium is likely to be treated as a prohibited payment.

2. Refundable tenancy deposit (capped at 5 weeks’ rent) Where annual rent is under £50,000, the deposit is capped at 5 weeks’ rent. Where annual rent is £50,000 or more, the cap is 6 weeks’ rent. The deposit must be protected in a government-approved scheme.

3. Refundable holding deposit (capped at 1 week’s rent) A holding deposit can be taken to reserve a property while referencing is completed. It is capped at 1 week’s rent. It must be:

• Refunded within 15 days (the “deadline for agreement”) unless the tenancy proceeds, in which case it is credited against the first rent payment or returned
• Forfeited only if the tenant provides false or misleading information, fails a Right to Rent check, withdraws their application, or fails to enter into the tenancy by the deadline

4. Default fees Landlords can charge for certain tenant defaults where these are explicitly stated in the tenancy agreement:

• Late rent: where rent is more than 14 days overdue, landlords can charge interest at a rate of up to 3% above the Bank of England base rate (calculated daily on the outstanding amount)
• Lost keys or security devices: the landlord can recover reasonable costs for replacing keys or security devices, but must provide written evidence of the cost

5. Change of tenancy fee (capped at £50 including VAT) Where a tenant requests a change to the tenancy agreement — for example, adding a new tenant or agreeing to keep a pet — the landlord can charge up to £50 (or the reasonable costs if higher, with evidence). This fee only applies where the change is at the tenant’s request.

6. Early termination fee Where a tenant requests to end the tenancy early, the landlord can charge an early termination fee. This cannot exceed the financial loss the landlord actually suffers — for example, rent lost until a new tenant moves in, plus reasonable re-letting costs. The landlord must mitigate their losses by actively seeking a new tenant.

What is prohibited

Everything not on the permitted list is prohibited. Common examples of prohibited charges include:

• Referencing fees
• Credit check fees
• Administrative fees
• Inventory fees
• Check-in or check-out fees
• Renewal fees
• Cleaning fees (upfront — cleaning can only be charged as a deduction from the deposit if the property is left dirty)
• Professional cleaning requirements in the tenancy agreement
• Pet deposits (above the standard deposit cap)
• Guarantor fees

What evidence to keep

• A written record of any holding deposit taken, including the amount, the date, and when it was refunded or credited
• Written evidence of the cost of any default fee charged (e.g. invoice for key replacement)
• Written evidence of the financial loss underpinning any early termination fee
• Signed acknowledgement from the tenant where a change of tenancy fee has been agreed

Common mistakes

Charging a referencing fee. Referencing fees were permitted before the Act. They are now prohibited. This is one of the most common inadvertent breaches.

Inserting a professional cleaning clause. Clauses requiring tenants to have the property professionally cleaned at the end of the tenancy are unenforceable — landlords can only claim for cleaning if the property is actually left in an unacceptable state.

Taking a holding deposit and then failing to refund it properly. Holding deposits must be refunded within 15 days if the tenancy does not proceed for any reason other than the tenant’s fault. Keeping a holding deposit without a valid reason is a prohibited payment.

Charging late payment interest before the 14-day grace period. Interest on late rent can only be charged from the 14th day of non-payment onward, not from the due date.

Inflating change of tenancy fees. The cap is £50 including VAT unless actual costs exceed this, in which case evidence must be provided. Charging a flat fee above £50 without evidence is a prohibited payment.

FAQ

Does the Tenant Fees Act apply to all tenancies? It applies to Assured Shorthold Tenancies (and student tenancies) in England. It does not apply to company lets, excluded occupiers, or licences.

Can I charge a deposit for a pet? No — you cannot charge a separate pet deposit. You can take a standard deposit (up to 5 weeks’ rent) and make a deduction from it at the end of the tenancy if the pet causes damage. Some landlords increase rent slightly where pets are permitted.

What happens if I accidentally charge a prohibited fee? You must refund the prohibited payment. Until you do, you cannot serve a valid section 21 notice (pre-May 2026). Local authorities can also pursue a civil penalty of up to £5,000.

Can I require the tenant to pay for professional cleaning? No. A clause requiring professional cleaning at the end of the tenancy is an unenforceable prohibited term. You can make a legitimate deduction from the deposit if the property is returned in an unreasonably dirty condition.

Is a holding deposit the same as a tenancy deposit? No. A holding deposit (capped at 1 week’s rent) reserves the property during referencing. A tenancy deposit (capped at 5 weeks’ rent) is held during the tenancy and must be protected in an approved scheme.

What counts as a valid reason to retain a holding deposit? You can retain a holding deposit if the tenant: provides false or misleading information; fails a Right to Rent check; withdraws before the deadline; or fails to take reasonable steps to enter the tenancy. You must notify the tenant in writing of the reason within 7 days of the decision not to proceed.