Despite being in place for several years, the Tenant Fees Act still raises important questions for landlords, tenants and letting agents. From deposit limits to default charges, the details of what is and isn’t allowed can still cause confusion.
That’s why it’s helpful to revisit the essentials, so you can stay informed, confident and clear on what’s expected.
A closer look at the Tenant Fees Act
The Tenant Fees Act 2019 was introduced to create greater clarity around costs in the rental process. It limits what tenants can be charged and provides a standardised list of permitted fees.
The law applies to most private tenancies in England. This includes assured shorthold tenancies, student rentals and licences to occupy. The aim is to make renting more transparent and to ensure tenants aren’t caught off guard by unexpected or excessive costs.
Related: The Renters’ Rights Bill 2025
Fees that are no longer allowed
The tenant fee ban in the UK has removed many charges that were once common. Landlords and letting agents can no longer ask tenants to pay for services such as:
- Referencing or credit checks
- Inventory or check-in and check-out services
- Tenancy renewal administration
- Cleaning charges that are not related to a clear breach
- Admin fees for documents, phone calls or arranging viewings
Even if a tenant agrees to one of these fees, it cannot legally be charged unless it is classed as a permitted payment. This is one of the most common misunderstandings among landlords and agents.
Related: Seven mistakes for landlords to avoid
What fees are still permitted?
There are still several legitimate charges that can be made, and these are clearly listed under the permitted payments rules in the Tenant Fees Act. These include:
- Rent, as agreed in the tenancy agreement
- A holding deposit, capped at one week’s rent
- A tenancy deposit, within the legal limits
- Default charges, such as late rent or lost keys
- Fees for early termination, based on actual costs
- Utility bills and council tax, if stated in the tenancy agreement
This limited list is designed to ensure that tenants know exactly what to expect and what they are responsible for.
Related: Ten top tips to ensure you keep your rental deposit
Deposit caps explained
The deposit cap in the UK means that landlords and agents must stick to set limits when taking a tenancy deposit. These are:
- No more than five weeks’ rent if the annual rent is under £50,000
- No more than six weeks’ rent if the annual rent is £50,000 or more
This cap applies in all cases, including where tenants with pets or other special requirements. Deposits must be registered in a government-approved scheme, and tenants must be given written confirmation of this within 30 days.
Holding deposit rules
Holding deposits are often used to reserve a property before a tenancy is signed. The rules on holding deposits in the UK state that the maximum allowed is one week’s rent.
The deposit must be returned in full or applied to the rent or tenancy deposit if the tenancy goes ahead. It can only be kept in certain circumstances, such as if the tenant withdraws, provides false information or fails a right to rent check. Clear written terms must always be provided before the deposit is taken.
Related: How to make sure you get your deposit back at the end of a tenancy
Consequences of breaking the rules
Charging a banned fee or holding a deposit unfairly can lead to formal action. Local councils and trading standards teams are responsible for enforcement, and their powers include:
- Fines of up to £5,000 for a first offence
- Further fines of up to £30,000 for repeat or serious breaches
- Supporting tenants to recover unlawful charges
- Issuing banning orders for persistent non-compliance
Understanding these risks is an important part of staying compliant and protecting both your business and your reputation.
Related: What is subletting? A complete guide for tenants and landlords
Common misunderstandings and FAQs
Can landlords still charge tenants for professional cleaning?
Only if the tenant has clearly breached the agreement. General wear and tear are not considered a valid reason.
Are larger deposits allowed if the tenant has a pet?
Yes, but the total deposit must still fall within the capped amount.
Can tenants voluntarily agree to pay additional fees?
No. Even with consent, any fee not listed as permitted is considered unlawful.
Do the rules apply to company lets?
No. The act only applies to tenancies where the occupant is an individual, not a business or company.
Making things clearer for everyone
The Tenant Fees Act 2019 is designed to create a more open and balanced rental experience. By understanding which payments are allowed and which are not, landlords, and tenants can avoid disputes and build better relationships.
Whether you’re reviewing a tenancy agreement or preparing to rent out a property, it’s worth taking time to check that everything is aligned with the current legislation.
Need support or have a question about renting? Your local Martin & Co team is here to help with personalised advice.
Further reading:
The impact of inflation on UK rental prices in 2025
