The Tenant Fees Act 2019 - what a landlord can and cannot charge - Print version

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The Tenant Fees Act 2019

How does it affect me?

The Tenant Fees Act 2019 came into force on 1 June 2019 for new tenancies.

It applies to all tenancies from 1 June 2020. 

What a landlord can and cannot charge

It is illegal for landlords and letting agents to charge tenants fees for anything other than permitted payments.

A landlord is allowed to charge you for (permitted payments):

  • rent
  • holding deposits (capped at one week’s rent)
  • security deposits (capped to five weeks’ rent)
  • utility bills and council tax
  • default fees, including key loss and rent arrears (reasonable charges)
  • changes to a tenancy at the tenant’s request, capped at £50
  • fees for leaving a tenancy early, known as termination charges (to cover actual loss suffered by the landlord)

To work out your weekly rent, multiply your monthly rent by 12, then divide this sum by 52. Always make payments in a way that you can trace, for example a bank transfer. If you pay by cash, get a receipt.

A landlord is not allowed to charge you for (prohibited payments):

  • administration fees
  • contract negotiation fees
  • application fees
  • inventory charges
  • set up fees
  • referencing fees
  • check-in and check-out fees
  • credit check fees
  • renewal fees
  • guarantor fees
  • end of tenancy fees
  • permitted occupier fees
  • default professional cleaning fee
  • right to rent fees

Do not pay these fees, even if they are on the property advert or in your tenancy agreement. If you have been charged a prohibited payment contact the Citizens Advice consumer service on 0808 223 1133 or use their online reporting form .

Protection from eviction

If you’ve paid a prohibited payment, you cannot be evicted under a S.21 notice until the prohibited payment has been returned to you.

You can however still be evicted for other reasons, via a S.8 notice, for things like rent arrears, or breach of tenancy term.

Landlord charges explained

The types of payments you as a tenant will see, in more detail

Rent

  • pay equal instalments (usually monthly)
  • paying less “rent” to hold a vacant property over holiday periods conflicts with the purpose of a tenancy agreement and would be prohibited

Holding deposit (capped to one week's rent equivalent per tenancy)

  • to reserve a property before signing tenancy agreement
  • specific rules apply to how it is to be treated, when it must be returned to you and when the landlord can keep it
  • only pay a holding deposit if you are serious about renting that property

Security deposit (capped to five weeks rent equivalent, per tenancy, if rent is less than £50,000 per year)

  • covers damage to property while you live there
  • in a shared house you may be liable for damage caused by someone else
  • must be protected in approved scheme and information provided to you within 30 days of payment
  • deposit scheme can help if you dispute retention by landlord at end of tenancy (capped to 6 weeks rent equivalent, per tenancy, if rent is £50,000 or more per year)

Utility bills and council tax

  • must be clear in your tenancy agreement what you are liable to pay, and how
  • student occupied properties are exempt from Council Tax, check this is correctly recorded with your Council
  • if your name is on the bill, you will be liable for payments and any penalties for late payment
  • if your landlord collects all inclusive rent, you cannot be charged an administration fee or collection fee in respect of the bill payments
  • if you pay the landlord when the utility bills arrive, check usage and unit calculations are correct

Default fees, loss of key and unpaid rent

Lost key or other security device

  • you can be liable for costs reasonably incurred by the landlord if they are supported by written evidence (i.e. receipt) and the tenancy agreement requires the payment to be made

Unpaid rent

  • you can be charged interest at 3% above the Bank of England base rate. The tenancy agreement must state such payment will be required in the event of your failure to pay the rent in full, & has been outstanding for more than 14 days.

Changes to a tenancy at the tenant’s request

  • if you request a change to the tenancy, you can be charged the reasonable costs incurred in respect of the change up to a maximum of £50. This charge cannot be imposed if the landlord / agent decides to change the tenancy agreement.

Early termination (tenant’s request)

  • if you decide to leave the tenancy early within the fixed term or without giving the correct notice period, you can be required to cover the loss incurred by the landlord such as the remaining rent due.
  • if you want to leave early, try and discuss your options with your landlord first, to mutually agree an early termination. Always confirm any agreement in writing.
  • if the tenancy agreement allows for one tenant to leave and another to take their place (a change of sharer) the agent can charge up to £50 (inc VAT) or their reasonable costs if higher. The agent will have to prove their costs are more than £50 if they charge more. If the tenant wants to leave altogether, the agent can charge their costs in re-letting the property up to the maximum rent still due under the tenancy.

Do not pay these fees, even if they are on the property advert or in your tenancy agreement. If you have been charged a prohibited payment contact the Citizens Advice consumer service on 0808 223 1133 or use their online reporting form .

Redress, Deposit and Client Money Protection (CMP) schemes

The schemes your landlord or letting agents must belong to:

Redress scheme

Your letting or managing agent must belong to one of two redress schemes:

  • The Property Ombudsman (TPO)
  • The Property Redress Scheme (PRS)

Check if your agent is a member online at:

Deposit schemes

Your deposit must be protected in one of three schemes and your landlord or letting agent must do this for you within 30 days of you paying (Keep a dated record of this payment for your records):

Client Money Protection (CMP) schemes

If you rent through a letting or managing agent and pay them any money for the property, like rent, they must be a member of a client money protection scheme. There are six schemes listed below where you can check membership:

If you think this has not been followed

If you have been mischarged, or your landlord / agent is not following these requirements contact the Citizens Advice consumer service on 0808 223 1133 or use their online reporting form .

Before you sign a tenancy agreement

A list of reminders to help you make an informed decision before you rent:

  • is the agent in a redress scheme
  • is the agent in a client money protection scheme
  • is the property advert clear on rent, holding deposit and security deposit
  • will my holding deposit be correctly handled
  • have I got a tenancy agreement requiring only permitted payments
  • are all the terms clear and reasonable
  • which scheme is my deposit in
  • have all relevant safety certificates and mandatory information been provided
  • proof your purchase and avoid paying by cash where possible unless you can obtain a receipt

Read the list of things to check in the “How to Rent: a checklist for renting in England” GOV.UK web page (opens in new tab) [https://www.gov.uk/government/publications/how-to-rent/how-to-rent-the-checklist-for-renting-in-england].

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