Permitted payments

Permitted payments are the charges a landlord or letting agent is lawfully allowed to request or retain from a tenant in connection with a tenancy in England. Under the Tenant Fees Act 2019, which is set out in Schedule 1 of the Act, the principle is absolute: if a payment is not listed as permitted, it is automatically prohibited, and demanding or retaining it is a civil offence. The Act applies to assured tenancies, student accommodation, and licences to occupy in the private rented sector; it does not apply to social housing or long leases. From 1 May 2026, the Renters' Rights Act 2025 amended the Act to add advance rent beyond one month to the list of prohibited payments, a change that closes one of the most common workarounds used before that date.

The complete permitted payments list

Rent. Rent is a permitted payment, but the amount must be the rent as advertised. A landlord cannot charge a higher first month's rent to recoup banned fees. From 1 May 2026, a landlord cannot require more than one month's rent to be paid in advance before the tenancy starts.

Refundable tenancy deposit. The tenancy deposit cap is five weeks' rent where the annual rent is below £50,000, or six weeks' rent where the annual rent is £50,000 or above. Any sum above the cap is a prohibited payment. The deposit must be protected in a government-approved scheme within 30 days.

Refundable holding deposit. The holding deposit, paid to reserve a property while references are checked, is capped at one week's rent and must be refunded or credited against the tenancy deposit when the tenancy starts. A landlord cannot hold more than one holding deposit per property at any time.

Default fees. Two default fees are permitted, but only where expressly written into the tenancy agreement. First, interest on late rent: the rent must be at least 14 days overdue before any interest can be charged, and the daily rate must not exceed 3% above the Bank of England base rate per year. Second, the reasonable cost of replacing a lost key or security device, the landlord must supply written evidence of the actual cost incurred.

Variation, assignment, or novation of a tenancy. Where a tenant requests a change to their tenancy agreement, adding a co-tenant, allowing a pet, or varying a term, the landlord may charge up to £50, or the reasonably incurred cost if evidenced to exceed £50. This payment is only permitted where the change is requested by the tenant.

Early termination. Where a tenant requests to end the tenancy before the end of any contractual term, the landlord may charge an amount reflecting their actual financial loss, unpaid rent until a replacement tenant is found, plus reasonable agent costs. The charge cannot exceed the landlord's genuine loss.

Utilities, Council Tax, TV licence, and communications services. Where the tenancy agreement includes utilities, council tax, a TV licence, or communication services (broadband, telephone, cable, or satellite TV), the tenant can be asked to pay these as part of the tenancy. Any administration charge on top of the actual cost is prohibited.

Common prohibited charges

Anything not in the list above is a prohibited payment. Common charges that landlords and agents incorrectly believe are permitted include: admin or set-up fees; referencing and credit check fees; inventory preparation and check-in fees; check-out fees; professional end-of-tenancy cleaning fees required as a tenancy condition; renewal or extension fees; guarantor arrangement fees; Right to Rent check fees; and any pet-related fee or deposit above the standard deposit cap.

From working with self-managing landlords, the most frequently misunderstood prohibition is professional cleaning. A landlord cannot require tenants to pay for professional cleaning as a condition of the tenancy or a term of the agreement. However, if the property is left in a worse state than its condition at the start of the tenancy, evidenced by a photographic inventory, the landlord can deduct the cost from the deposit.

Penalties for prohibited payments

Requesting or retaining a prohibited payment is a civil offence carrying a financial penalty of up to £5,000 for a first breach, issued by the local authority or Trading Standards. A further breach within five years of the first elevates the offence to a banning order offence under the Housing and Planning Act 2016, carrying a civil penalty of up to £30,000 or, alternatively, criminal prosecution with an unlimited fine. Tenants can apply to the First-tier Tribunal (Property Chamber) to recover prohibited payments. Critically, a landlord who has charged a prohibited payment and not repaid it cannot use most possession grounds to recover their property until the prohibited payment has been returned.

Landlords using August can track every payment received from tenants, rent, holding deposits, and tenancy deposits, in the rent tracking feature, giving a clear audit trail of what was charged and when.

For a full guide to what the Tenant Fees Act 2019 means for landlords, including how it interacts with the Renters' Rights Act 2025 and the practical implications for deposit handling, see our Tenant Fees Act guide for landlords.

Frequently asked questions

Can a landlord ask for six months' rent upfront?

No, not from 1 May 2026. Before that date, advance rent was a permitted payment with no statutory cap. From 1 May 2026, the Renters' Rights Act 2025 amended the Tenant Fees Act to limit advance rent to one month's rent paid after the tenancy agreement has been signed. Requiring more than one month's rent in advance, including at the start of the tenancy, is now a prohibited payment.

Does the Tenant Fees Act still apply after the Renters' Rights Act 2025?

Yes. The Renters' Rights Act 2025 sits alongside the Tenant Fees Act 2019 and does not replace it. The Renters' Rights Act amended Schedule 1 of the Tenant Fees Act in two ways: it added the one-month advance rent cap, and it updated references to tenancy types to reflect the replacement of assured shorthold tenancies with assured periodic tenancies. The core permitted payments framework remains the same.

Can a landlord charge for referencing or a credit check?

No. Referencing, credit checks, Right to Rent checks, and any administrative fee connected with processing a tenant application are prohibited payments under the Tenant Fees Act 2019. The landlord bears these costs, not the tenant. Any term in a tenancy agreement requiring a prohibited payment has no legal effect, the tenant is not bound by it.