Tenant Fees Act 2019

The Tenant Fees Act 2019 is the primary legislation in England that bans most upfront charges and ongoing fees a landlord or letting agent can require a tenant or guarantor to pay in connection with a tenancy. It came into force on 1 June 2019 for new tenancies and applied to all existing tenancies from 1 June 2020. The Act is given statutory effect by Schedule 1 (Tenant Fees Act 2019), which sets out an exhaustive list of permitted payments, anything not on that list is a prohibited payment and is unlawful to charge.

The Act applies to most assured tenancies and licences to occupy in the private rented sector in England, including student lets. It applies to payments required from tenants and guarantors, not just named tenants, and applies regardless of whether the charge is described as a fee, a service charge, a contribution, or anything else. It does not apply in Scotland, which has its own Tenant Fees Act, or in Wales, which has equivalent provisions under the Renting Homes (Wales) Act 2016.

Permitted payments

The Act's Schedule 1 sets out six categories of payment a landlord or agent may lawfully require:

Rent. The agreed rent under the tenancy agreement. A landlord cannot charge rent at a rate higher in the early months of the tenancy than later months, a practice used to circumvent the deposit cap, as this constitutes a prohibited payment.

A refundable tenancy deposit. Capped at five weeks' rent where the annual rent is £50,000 or less, and six weeks' rent where it exceeds £50,000. For a full explanation of how the deposit cap and protection rules work, see the August definition of the tenancy deposit cap.

A refundable holding deposit. Capped at one week's rent. Subject to strict rules on when it can be retained. For a full explanation of how the holding deposit works, including the 15-day deadline and the four grounds for retention, see the August definition of the holding deposit.

Default fees. A landlord may charge a fee for late payment of rent, but only where the rent is more than 14 days overdue and only at a rate not exceeding 3% per annum above the Bank of England base rate on the outstanding amount. A landlord may also charge a reasonable fee for replacing a lost key or security device, but only where the charge is evidenced in writing and supported by a receipt showing the actual cost, the landlord cannot profit from this charge.

Early termination at the tenant's request. Where a tenant asks to leave early and the landlord agrees, the landlord can charge a fee, but only to recover the landlord's reasonable costs or the agent's reletting costs, whichever is lower. The landlord cannot charge more than the rent that would have been payable for the remaining period.

Changes to a tenancy at the tenant's request. Where a tenant requests a variation, assignment, or novation of the tenancy, the landlord or agent can charge a fee capped at £50 including VAT per agreed change, or the reasonable costs of the change if lower.

Prohibited payments

Every other charge is a prohibited payment. The most commonly misunderstood include:

• referencing fees or credit check fees (prohibited, the landlord bears this cost);

• administration fees for setting up the tenancy (prohibited);

• fees for renewing or extending the tenancy (prohibited);

• charges for checking in or checking out (prohibited if charged to the tenant);

• fees connected to the property (service charges, insurance contributions, prohibited unless they are the agreed rent); and

• any fee framed as a "reservation fee" or "holding fee" that exceeds the one-week cap or falls outside the holding deposit rules.

Professional cleaning. The Act does not prohibit requiring a professional clean at the end of the tenancy, but only where the property was professionally cleaned at the start and this is evidenced by a dated receipt. A clause requiring professional cleaning at the end regardless of the property's starting condition is a prohibited payment. Where such a clause exists in the tenancy agreement, it is void and unenforceable.

As referencing, renewal, check-in, and check-out fees can no longer be passed to tenants, these costs fall entirely on the landlord and should be factored into any assessment of what agent management actually costs. Use the property management fees calculator to see the full annualised cost of using an agent, management percentage, letting fee, renewal fee, and inventory costs, broken down line by line.

The Renters' Rights Act 2025 additions

The Renters' Rights Act 2025, in force from 1 May 2026, added one material restriction to the Tenant Fees Act framework: a ban on requiring more than one month's rent to be paid in advance before the tenancy begins. Previously, landlords sometimes required several months' rent upfront from tenants without a credit history or guarantor, a practice that effectively functioned as an unlicensed additional deposit. From 1 May 2026, any requirement for more than one month's rent in advance before the tenancy commences is a prohibited payment. For a full explanation, see the August definition of rent in advance.

Penalties and enforcement

Local Trading Standards authorities enforce the Tenant Fees Act. A landlord or agent who requires a prohibited payment faces a civil penalty of up to £5,000 for a first breach. A second breach within five years of the first attracts a civil penalty of up to £30,000 and is treated as a criminal offence, there is no upper limit on prosecution fines.

Taking a prohibited payment also has direct tenancy consequences. A landlord who has taken a prohibited payment that has not been repaid cannot serve a valid Section 8 notice until the payment is returned, a provision strengthened under the Renters' Rights Act 2025, which made deposit and fee compliance a prerequisite for most grounds for possession.

August's document management feature stores evidence of permitted fees charged, including receipts, invoices, and written confirmation, ensuring landlords have the paper trail needed to defend any charge if it is challenged by a tenant or local authority.

Frequently asked questions

What is the Tenant Fees Act 2019?

The Tenant Fees Act 2019 bans most upfront and ongoing charges a landlord or letting agent can require a tenant or guarantor to pay in connection with a private tenancy in England. Only six categories of payment are permitted: rent, a capped tenancy deposit, a capped holding deposit, default fees for late rent or lost keys, early termination fees, and fees for tenant-requested tenancy changes. Everything else is a prohibited payment.

Can a landlord charge for referencing or credit checks?

No. Referencing fees, credit check fees, administration fees, and any charge for setting up the tenancy are prohibited payments under the Tenant Fees Act 2019. The landlord or letting agent must bear these costs. Charging for them, however framed, is unlawful.

Can a landlord require professional cleaning at the end of a tenancy?

Only where the property was professionally cleaned at the start of the tenancy, evidenced by a dated receipt. A clause requiring professional cleaning regardless of the starting condition is a prohibited payment and is void and unenforceable, even if the tenant signed the tenancy agreement containing it.

What happens if a landlord takes a prohibited payment?

A first breach attracts a civil penalty of up to £5,000. A second breach within five years carries a penalty of up to £30,000 and is a criminal offence. The landlord also cannot serve a valid Section 8 notice while a prohibited payment that has not been repaid remains outstanding.

Does the Tenant Fees Act apply in Scotland and Wales?

No. The Tenant Fees Act 2019 applies in England only. Scotland has its own Tenant Fees Act and Wales has equivalent provisions under the Renting Homes (Wales) Act 2016.