Renting

Tenant Fees Act 2019 Explained — What Landlords Cannot Charge

The Tenant Fees Act 2019 banned a wide range of upfront charges that were previously common practice, from referencing fees to renewal charges. This guide sets out precisely what landlords and agents can and cannot charge in 2026.

Published: 1 Jan 2026 · Updated: 1 Mar 2026 · 6 min read

What Is the Tenant Fees Act 2019?

The Tenant Fees Act 2019 came into force in England on 1 June 2019 and fundamentally changed what landlords and letting agents are permitted to charge tenants. Before the Act, a range of fees — referencing, credit checks, inventory, renewal — were routinely charged by agents and added significantly to the cost of renting. The Act banned these charges outright, making them criminal offences if levied.

Understanding what is and is not permitted is essential for any tenant signing a new agreement in 2026, and for any landlord ensuring their tenancy is compliant. Use our [rental deposit calculator](/rental-deposit-calculator) to verify that the deposit you have been asked to pay falls within the legal cap.

Prohibited Payments — What Is Banned

The following charges are **prohibited payments** under the Act. Asking for or receiving them is a criminal offence:

Upfront Fees

**Referencing fees** — the cost of checking a tenant's credit history, employment, or rental history
**Administration fees** — any charge for processing your application or setting up the tenancy
**Inventory fees** — charging tenants for the cost of drawing up an inventory
**Guarantor arrangement fees** — a fee to arrange a rent guarantor
**Credit check fees** — even if a third-party service is used
**Professional cleaning fees** charged upfront as a condition of the tenancy

Renewal and Ongoing Charges

**Renewal fees** — any charge for renewing or extending a tenancy
**Check-out fees** — charging for an inspection at the end of the tenancy
**Third-party service fees** — requiring tenants to pay for specific broadband providers, utility companies, or insurance products as a condition of renting

Pet Deposits and Fees (England)

Pet deposits are not permitted in England under the current framework. The only permissible security deposit is the standard 5/6-week cap, which must cover any potential pet damage alongside all other damage. Some landlords increase the rent to offset pet risk, which is lawful.

Permitted Payments — What Landlords Can Still Charge

The Act creates a closed list of payments that landlords and agents are permitted to request:

Permitted Payment	Rules
Rent	As stated in the tenancy agreement
Security deposit	Maximum 5 weeks' rent (6 weeks if annual rent > £50,000)
Holding deposit	Maximum 1 week's rent
Default fees	Must be specified in the agreement; e.g. replacement keys at cost, late rent interest after 14 days at 3% above Bank of England base rate
Variation, assignment or novation of tenancy	Maximum £50 including VAT, or reasonable costs if higher — whichever is lower
Early termination	Only when the tenant requests this; must reflect the landlord's actual financial loss
Council tax, utilities, TV licence	Only where the tenant is contractually responsible

What Are Default Fees?

Default fees are charges triggered by a tenant's failure to fulfil a specific obligation — they are permitted but only if:

1. The fee is explicitly described in the tenancy agreement before signing

2. The fee does not exceed the landlord's actual costs

3. For late rent: interest can only be charged after rent is 14 or more days overdue, at a maximum rate of 3% above the Bank of England base rate

A landlord cannot retrospectively introduce a default fee that was not in the original tenancy agreement.

Enforcement and Penalties

Enforcement is carried out by **Trading Standards** officers within local authorities, not HMRC or a central agency. Tenants who believe they have been charged a prohibited payment should:

1. Write to the landlord or agent identifying the prohibited charge and requesting repayment within 14 days

2. If refused, report the matter to their local council's Trading Standards team

3. Apply to the First-Tier Tribunal (Property Chamber) for an order requiring repayment

Penalties for breaches:

**First offence:** Financial penalty up to **£5,000**
**Repeat offence within 5 years:** Fine up to **£30,000** plus a potential **banning order** from letting property

Impact on Section 21 / Renters' Rights Act 2025

Under the Tenant Fees Act, a landlord cannot serve a valid notice to end a tenancy while retaining a prohibited payment. The Renters' Rights Act 2025 abolished Section 21 no-fault evictions entirely, replacing them with new grounds-based processes. However, the interaction with prohibited payments remains: a landlord holding prohibited money cannot rely on any possession ground until the prohibited payment has been returned.

Checking Your Deposit

If you have been quoted a deposit amount and are unsure whether it falls within the legal cap, use our [rental deposit calculator](/rental-deposit-calculator). Enter your monthly or weekly rent and the calculator will instantly show you the maximum deposit your landlord can charge under the Tenant Fees Act 2019.