Tenancy fees

A private landlord or agent can only charge fees permitted under the Tenant Fees Act 2019.

Any payment which is not permitted is a prohibited payment, also known as a banned fee.[1]

A landlord or letting agent can charge:[2]

• rent and limited fees for late rent

• a capped tenancy deposit

• a capped holding deposit

• damages for breach of tenancy agreement

• reasonable fees to change or surrender the tenancy

• a reasonable fee to replace a key or security device

Payments for council tax, utilities, communication services and TV licence can be charged if they are in the tenancy agreement.

All other payments are prohibited, including fees for reference checks.

The banned fees rules apply to payments made by tenants, licensees, guarantors and anyone acting on the tenant or licensee's behalf.[3]

Maximum amounts for tenancy fees

Most permitted payments are capped. Any part of a fee that exceeds the cap is a banned payment.

Payments by local authorities

A payment is not a banned fee if it is made by a local housing authority, the Greater London Authority or a person acting on their behalf.[4]

An authority might make and offer payments to private landlords and agents on behalf of tenants. For example, 'finder's fees’ payments made by authorities exercising homelessness functions.

Government guidance

The government has published guidance for tenants, landlords, letting agents and local authorities on how the rules should be applied.

Read the Tenant Fees Act guidance on Gov.uk.

The permitted payments and banned fees rules apply to most private sector tenancies and lettings.

Any term in these agreements requiring the payment of a prohibited fee is not binding.[5]

Private assured tenancies

Most private renters have an assured tenancy.

From 1 May 2026, a landlord or letting agent cannot charge a banned fee, or more than a maximum fee, to a private assured tenant.

For tenancies that were fully assured before 1 May 2026, the banned fees rules only apply to tenancy fees paid from 1 May 2026.[6]

Most private assured shorthold tenants became periodic assured tenants on 1 May 2026.

For tenants who were assured shorthold and became fully assured on 1 May 2026, most banned fees rules also apply to fees paid before 1 May 2026 during the assured shorthold tenancy.

The ban on rent in advance only applies to tenancies entered into after 1 May 2026.[7]

Other private tenancies and lettings

A landlord or letting agent cannot charge a banned fee, or more than a maximum fee, in relation to:[8]

• private assured shorthold tenancies

• most licenses to occupy housing

• a student letting provided by specified educational institutions, for example university owned halls of residence

This includes resident landlords with lodgers and houses in multiple occupation.

For tenancies that began before 1 June 2019 and have not been renewed since, the ban applies only to prohibited payments made on or after 1 June 2020.

Tenancies the rules do not apply to

A payment is not a banned fee if it is made in connection with:

• other private rented sector tenancies, such as regulated tenancies

• tenancies and licenses of social housing, including housing association assured tenants

• long leases

• holiday lets

• excluded licences in the private rented sector, such as Homeshare agreements

For private assured tenancies starting on or after 1 May 2026, payment of rent in advance before a tenancy agreement is signed is a prohibited payment.[9]

A landlord or agent must not invite or encourage a tenant to make an offer to pay rent in advance or accept an offer of rent in advance.[10]

When a landlord can ask for rent in advance

A landlord can only ask for rent in advance from when the tenancy agreement is signed until one day before the tenancy start date. Where the tenancy starts on the same day the agreement is signed, the landlord cannot ask for rent in advance.[11]

Maximum amount of rent in advance

A landlord can only charge rent in advance up to:[12]

• one month if the rental period is one month

• 28 days if the first rental period is less than a month

Any contractual term specifying other amounts has no effect.[13]

The rent in advance payment must be used for the initial period of the tenancy. For example, where rent is paid monthly the rent in advance must be used to cover the first month's rent.[14]

When benefits can pay for rent in advance

To claim housing benefit or the housing costs element of universal credit, a claimant must be treated as liable to make payments for accommodation they occupy as their home.[15] A written tenancy agreement with a rent amount is usually sufficient evidence.

A tenant can claim housing benefit or the housing costs element universal credit to cover rent in advance if they are eligible. Benefit payments do not cover rent in advance at the time it is paid.

Where a tenant is claiming universal credit for one property requires rent in advance on a new property, the local authority can award a discretionary housing payment. Find out more about discretionary housing payments.

A tenant could apply to the DWP for a budgeting advance so that rent in advance is paid as an interest-free loan. Find out more about help with housing costs.

The payment of rent is a permitted payment.[16]

Front loading rent

A landlord cannot charge higher rent at the beginning or during a tenancy to compensate for the loss of income through fees.[17] This is known as front loading.

For example, the landlord cannot ask the tenant to pay more for one month than for the next month. Any additional amount is a prohibited payment.

Fees for late rent

A landlord or letting agent can charge a fee where the tenant pays rent late. Rent must be outstanding for 14 days or more before a fee can be charged.[18]

The fee cannot be more than three percent above the Bank of England’s base rate to the amount of rent that remains unpaid at the end of that day.[19]

To work out the maximum default fee:

• add 3 to the Bank of England's Bank Rate

• divide by 100

• multiply by the rent arrears owed by the tenant

• divide by 365 to find the daily interest rate (366 in a leap year)

• multiply by the number of days the sum has been outstanding

If the amount of rent arrears changes, the calculation should be completed again to account for the new sum, the number of days the new sum has been outstanding, and any change to the base rate.

Rent premiums

A premium is a payment for a tenancy other than rent.

A landlord cannot require a person to pay a premium as a condition for granting an assured or assured shorthold tenancy. Any payment of a premium is a banned fee.

A tenancy deposit is a sum of money that a landlord or letting agent can request at the beginning of a tenancy. It acts as a security against non-payment of rent, damage to the property, or removal of furniture.

A tenancy deposit for an assured or assured shorthold tenancy must be protected in a government approved scheme.

Find out more about tenancy deposits.

Maximum tenancy deposit amount

The payment of a deposit is a permitted payment. The amount of a tenancy deposit is capped at:[20]

• five weeks’ rent, where the total annual rent is less than £50,000

• six weeks’ rent, where the total annual rent is £50,000 or more

If the deposit is more than the maximum amount, the extra money is a prohibited payment.

Where there is a joint tenancy, the cap is the same. A landlord cannot ask for a tenancy deposit equivalent to five or six weeks’ rent from each joint tenant.[21]

Deposit replacement insurance

A landlord or tenant might use deposit replacement insurance, also called a 'smart deposit' or 'zero deposit option'.

The landlord or tenant usually pays a monthly premium or a non refundable fee. If the landlord takes out the policy they can add the premiums to the rent or as a regular payment on top of the rent. The tenant does not get back any of the money they pay as deposit replacement insurance at the end of the tenancy.

The landlord can make a claim to charge a tenant for cleaning, damage or rent arrears after the tenancy ends. The insurance company pays out to the landlord and can reclaim the money from the tenant.

A non refundable fee for deposit replacement insurance would be a banned fee if the landlord requires the tenant to pay it as a condition of entering the tenancy.[22] Monthly premiums are not a banned fee if they are included in the advertised rent rather than required separately.

Tenancy began before 1 June 2019

If the landlord or agent charged a tenancy deposit above the permitted cap before 1 June 2019, they are not obliged to refund the part that is above the cap until the tenancy is either renewed or terminated.

If the deposit is protected in a tenancy deposit protection scheme, the government guidance suggests a 10-day time limit from either the renewal or termination of the tenancy for the refund to take place.[23]

A holding deposit is a refundable payment to reserve a property before the tenancy agreement is signed. It can allow a landlord to obtain references or carry out credit checks on the prospective tenant.

A landlord or agent should provide clear information to the tenant about the holding deposit in advance. They should make the tenant aware of the suitability requirements for the property, for example the basic income required.

Maximum holding deposit amount

A landlord or agent cannot ask a prospective occupier for a holding deposit which is more than one week of the total rent of the property.[24] Any amount over the capped amount is a prohibited payment. Where there are joint tenants, this can be split between them but the total maximum is the same.[25]

Landlords and agents can only accept one holding deposit for a property at any one time.[26]

What is the deadline for agreement

After a tenant pays a holding deposit, landlords and agents usually have 14 days to enter into an agreement with the tenant. The deadline for agreement is the 15th day after the landlord or agent has agreed the deposit. A landlord and the prospective tenant can agree a shorter or longer deadline in writing.[27]

When the landlord must return the holding deposit

A landlord or agent must usually return the deposit in full within seven days from when the:[28]

• tenancy or licence agreement is signed

• landlord decides not to grant the tenancy or licence

• deadline for agreement expires and the landlord and tenant do not enter into an agreement

Where the tenancy or licence is entered into, the landlord and tenant can agree to repay the deposit by paying it towards the first rent payment or the tenancy deposit.

If the holding deposit is applied to the tenancy deposit, the tenancy deposit is treated as being received on the date of the tenancy agreement.[29] Find out more about deposit protection requirements.

The holding deposit must also be returned where the landlord or agent either:[30]

• imposes a requirement on the tenant, licensee or another relevant person to make a prohibited payment

• behaves in an unreasonable way towards the tenant or another relevant person, such that it would be unreasonable to expect the tenant to enter into the agreement

When a landlord can keep the holding deposit

A landlord or agent can only retain the holding deposit where a prospective tenant or licensee:[31]

• provides false or misleading relevant information, for example about their income

• fails a right to rent check

• withdraws interest from a property before the deadline for agreement

• fails to take all reasonable steps to enter into a tenancy agreement before the deadline for agreement, and the landlord or agent has taken all reasonable steps

The landlord must give a full refund if the prospective tenant or licensee provided factual correct references but the landlord or agent subsequently considers the reference unsatisfactory.[32]

A landlord or agent must set out the reason in writing for retaining a holding deposit. They must do this within seven days after either:[33]

• they decide not to grant the tenancy or licence, or

• the deadline for agreement expires

The landlord or agent must return the deposit if they fail to notify the tenant in writing.

Local trading standards can impose a civil penalty if it is satisfied beyond all reasonable doubt that a landlord or agent unlawfully kept a holding deposit. The landlord or agent cannot be subject to a financial penalty if they fail to repay the deposit because they decided the tenant did not have the right to rent as a result of incorrect information provided by the Home Office.[34]

A landlord or agent can charge up to £50 for a tenant's reasonable request to change a tenancy agreement.[35] They can only charge more than £50 for each change unless the reasonable costs are higher. The landlord or agent might need evidence to show the reason for exceeding the cap.[36]

A change to a tenancy agreement might be:

• changing a tenant in a joint tenancy

• permission to sublet or take in a lodger

• permission to assign a tenancy following a relationship breakdown

• permission for the tenant to run a business from the property

It includes any amendment that alters the obligation of the agreement.

Fees to surrender the tenancy

A landlord or agent can charge a fee if the tenant or licensee asks to surrender their agreement.[37] A surrender is a voluntary agreement between the landlord and tenant that the tenancy has come to an end.

The fee charged must not exceed:

• the loss incurred by the landlord, for example, any loss in rental income

• the reasonable costs of the agent, such as marketing costs

Find out more about surrender of a tenancy.

A tenant does not have to pay a fee where the they terminate the tenancy by giving appropriate notice.

Find out more about notices to quit.

A landlord or agent can charge for utilities, TV licence, council tax and communication services where the tenancy agreement states the tenant should pay the landlord for these.[38] These bills must be set out in writing in the tenancy agreement or statement of terms. The landlord can ask that the tenant pays a third party.

Communication services means telephone landlines, broadband, and cable or satellite television.

Landlords must not overcharge tenants for the provision of utilities.[39] For example, by charging tenants more than the utility company charges the landlord.

Where a landlord or letting agent has charged a banned fee:

• the tenant can make a complaint about the letting agent

• the tenant can apply to the First-tier Tribunal to recover the payment

• the landlord cannot serve a valid section 21 notice until they have returned a banned fee

• an enforcement authority can impose a financial penalty

Complaint about a letting agent

All letting agents must belong to a letting agent redress scheme. A tenant or licensee can complain to the redress scheme. The scheme can investigate the situation and order the agent to apologise or give the tenant compensation.

Find out more about complaints about letting agents.

Tenant applies to First-tier Tribunal

A tenant or licensee who has paid a prohibited fee can take action to recover the payment in the First-tier Tribunal.

An enforcement authority can assist the tenant or licensee, for example by providing advice or by conducting proceedings.[40]

Effect on section 8 notices

A landlord can use a section 8 notice to seek possession of an assured tenancy. There is no restriction on using a section 8 notice where the landlord has taken a banned fee.

Find out more about section 8 notices.

Effect on section 21 and section 8 notices

A landlord can end an assured shorthold tenancy without having a reason or ground for possession by serving a valid section 21 notice in writing on the tenant.

Most assured shorthold tenancies in the private rented sector became assured tenancies automatically on 1 May 2026. A landlord cannot serve a section 21 notice on an assured tenant.

A landlord cannot serve a section 21 notice to end an assured shorthold tenancy until any prohibited payment or unlawfully retained holding deposit has been repaid, or with the relevant person’s agreement, credited towards their rent or tenancy deposit.[41]

The restriction on serving a section 21 notice does not apply where the prohibited payment was made before 1 June 2019.[42]

Find out more about what makes a section 21 notice invalid.

Enforcement authority civil penalty

A tenant could report a banned fee to an enforcement authority. Local trading standards, district councils and National Trading Standards can all act as enforcement authorities.

An enforcement authority can impose a civil penalty if it is satisfied beyond all reasonable doubt that a landlord or agent has breached the tenant fee rules.[43] It might order the landlord or agent to repay the tenant any prohibited payment.

A civil penalty can be up to £5,000 for an initial breach.[44] A subsequent breach within five years is a banning order offence and the civil penalty can be up to £30,000.[45]

Find a local trading standards office on Gov.uk.

Notice of intent

An enforcement authority must serve a notice of intent on the landlord or agent before it imposes a civil penalty.[46] The notice of intent must set out the date, amount of the civil penalty, the reasons for imposing the penalty and information about the right to make representations.

Any notice must be served within six months of the authority having sufficient evidence that the landlord or agent committed the breach. If the breach is or was ongoing, the notice must be served while the breach is continuing or within six months of the last day on which the breach occurred.

The landlord or agent has 28 days from the day after the date of service of the notice to make written representations to the authority.[47] After the end of this period, the enforcement authority must decide whether to impose a civil penalty and the amount of any penalty.[48]

Final notice

The authority must serve a final notice on the landlord or agent if it decides to continue with enforcement action. The final notice must set out the date, the amount of the civil penalty, the amount to be repaid and details on how the payment should be made. The notice should also include information about rights of appeal and the consequences of failing to comply.[49]

The final notice must require payment of any civil penalty within 28 days.[50]

Appeals by the landlord or agent

A landlord or agent can appeal to the First-tier Tribunal against a final notice.[51] An appeal can be made against the decision to impose a civil penalty or the amount of the penalty.

If appealing against a financial penalty, the appeal must be brought within 28 days from the day after the date of service of the final notice. If appealing against an order to repay a prohibited payment or holding deposit, the appeal must be brought within the repayment period specified in the notice.