Letting fee changes.

Letting Agent Fees: What Landlords and Agents Can Charge Tenants

The Tenant Fees Act 2019 restricts the payments that landlords and letting agents may require from tenants in England. Most charges connected with granting, renewing, continuing or ending a tenancy are prohibited unless legislation expressly permits them.

The rules now operate alongside the assured periodic tenancy system introduced by the Renters' Rights Act 2025.

Which Tenancies Are Covered?

The Tenant Fees Act applies to most private assured tenancies, many licences to occupy and relevant student accommodation in England.

Different legislation applies in Wales, Scotland and Northern Ireland.

Which Payments Are Permitted?

A landlord or letting agent may generally require only the following payments:

• Rent;


• A refundable tenancy deposit;


• A refundable holding deposit;


• A permitted payment for a tenancy change requested by the tenant;


• A payment connected with early termination requested by the tenant;


• Interest on late rent where the legal conditions are met;


• The reasonable cost of replacing a lost key or security device;


• Council tax where payable by the tenant;


• Utilities, television licences and communication services where the tenant is responsible for them; and


• Another payment expressly permitted by legislation.

Tenancy Deposit Limits

Where the annual rent is below £50,000, the tenancy deposit is generally limited to five weeks' rent.

Where the annual rent is £50,000 or more, the maximum deposit is generally six weeks' rent.

The landlord or agent must normally protect the deposit in an authorised tenancy deposit scheme and provide the tenant with the prescribed information within the statutory period.

Holding Deposits

A holding deposit is normally limited to one week's rent. It may be taken to reserve a property while references, right-to-rent checks and other pre-tenancy arrangements are completed.

The holding deposit must usually be repaid or credited towards the rent or tenancy deposit.

A landlord or agent may be entitled to retain it in limited circumstances, including where the applicant:

• Provides false or misleading information that materially affects their suitability;


• Fails a lawful right-to-rent check;


• Withdraws from the proposed tenancy; or


• Fails to take reasonable steps to enter into the tenancy by the agreed deadline.

Written reasons should be provided where a holding deposit is retained.

Changes Requested by the Tenant

A payment may be requested where the tenant asks for a change to the tenancy, such as replacing one tenant with another.

The charge should generally not exceed £50 unless the landlord or agent can show that the reasonable costs of making the change were higher.

Early Termination

Where a tenant asks to leave before they would otherwise be entitled to end the tenancy, the landlord may require payment of the resulting financial loss and reasonable costs.

The charge must not place the landlord in a better financial position than if the tenancy had continued.

Late Rent

Interest may be charged where rent has remained unpaid for at least 14 days, and the tenancy agreement allows interest to be imposed.

The rate is restricted by legislation and may only be calculated on the overdue amount for the period during which it remains unpaid.

Lost Keys and Security Devices

A tenant may be required to pay the reasonable cost of replacing a lost key, entry fob or other security device.

The landlord or agent should provide evidence of the cost incurred.

Which Charges Are Prohibited?

Payments that are generally prohibited include:

• Administration fees;


• Application fees;


• Reference and credit-check fees;


• Inventory charges;


• Check-in and check-out fees;


• Routine inspection charges;


• Tenancy renewal fees;


• Charges for serving routine notices; and


• Compulsory professional cleaning fees.

A tenancy may require the property to be returned in an appropriately clean condition. However, a tenant is not normally required to pay for a professional cleaning service or to use a particular cleaning company.

Rent in Advance

Landlords and agents must comply with the restrictions applying to rent in advance under the reformed tenancy system.

A prohibited fee cannot be made lawful merely by describing it as rent. An artificially inflated first payment may also be treated as an attempt to avoid the legislation.

Enforcement and Penalties

Local authority trading standards departments can investigate prohibited payments.

A landlord or agent may be required to repay the money and may face a financial penalty. Repeated breaches may result in prosecution and a larger fine.

A landlord may also be prevented from obtaining possession in some circumstances while a prohibited payment has not been repaid.

Recovering a Prohibited Payment

A tenant may:

• Request repayment from the landlord or agent;


• Report the matter to the local authority;


• Use an approved redress scheme where applicable; or


• Apply to the First-tier Tribunal for repayment.

Tenants should retain the tenancy agreement, receipts, bank statements, advertisements, emails and other evidence showing what was requested or paid.

Solicitors.com is not a firm of solicitors. This article is provided for general information only and does not constitute legal advice. You should seek advice from a suitably qualified solicitor about your individual circumstances.