Sign a tenancy agreement without reading the small print and you could be on the hook for fees that aren’t actually legal. Under the Tenant Fees Act 2019, most upfront charges landlords once collected — credit checks, reference fees, and admin fees — are banned. Yet many tenancy agreements still contain clauses that try to charge for these very things, from renewal fees to automatic cleaning costs. The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, is tightening the rules further, and it kicks in from 1 May 2026.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
What’s written in an agreement doesn’t always match what the law allows. The Tenant Fees Act 2019 caps deposits, bans most upfront fees, and sets strict limits on what you can be charged during a tenancy. The Landlords Guild research shows that outdated tenancy templates still include unlawful clauses — from fixed penalty fees for late rent to blanket “no pets” rules. Here’s what you actually need to know.
Most of these rules come from the Tenant Fees Act 2019. But the Renters’ Rights Act 2025 adds more layers, including the end of no-fault evictions under Section 21. What I tend to notice is that tenants often assume the agreement is legally sound just because it’s in writing. That assumption can cost you. The key term here is the assured periodic tenancy — the tenancy type that replaces the old assured shorthold tenancy for most new tenancies in England.
What the Tenant Fees Act actually bans — and what it still allows
The Tenant Fees Act 2019 drew a clear line between permitted and prohibited charges. The problem is that many tenancy agreements written before the Act, or copied from old templates, still cross that line. The table below shows what’s allowed and what’s not.
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| Fee type | Allowed under Tenant Fees Act? | How it’s capped |
|---|---|---|
| Rent | Yes | No cap, but must be advertised as a single asking rent — no bidding |
| Tenancy deposit | Yes | 5 weeks’ rent (annual rent < £50,000); 6 weeks’ rent (≥ £50,000) |
| Holding deposit | Yes | 1 week’s rent, refundable |
| Late rent interest | Yes, after 14 days | Bank of England base rate + 3% per year, calculated on overdue amount |
| Lost key replacement | Yes | Reasonable cost only |
| Tenancy variation fee | Yes | £50, or higher if you can show reasonable costs |
| Credit checks | No | Banned outright |
| Reference checks | No | Banned outright |
| Inventory fees | No | Banned outright |
| Check-out fees | No | Banned outright |
| Renewal fees | No | Banned outright |
| Professional cleaning clause | No | Cannot be mandatory; deposit deductions must be evidenced |
| Fixed penalty for late rent | No | Only interest-based charges allowed after 14 days |
If your tenancy agreement includes any of the banned items, the clause is unenforceable. A landlord can’t collect a fee that the Act prohibits, even if you signed the agreement. The real risk is that many tenants pay these fees without knowing they’re unlawful. Landlords who repeatedly include banned charges can face civil penalties from local authorities — under the Renters’ Rights Act 2025, those penalties can reach tens of thousands of pounds.
Errors in tenancy agreements that cost tenants most
Old tenancy templates are full of clauses that don’t hold up under current law. The research from the Landlords Guild highlights several recurring problems. Here’s where tenants — and landlords — get it wrong.
Blanket “no pets” clauses
A clause that says “no pets allowed” without exception is no longer safe. Under the Renters’ Rights Act 2025, tenants have a statutory right to request a pet. The landlord must respond in writing within 28 days. Consent cannot be unreasonably refused. What I tend to notice is that landlords often try to demand pet insurance or a separate pet deposit — neither of which is allowed. The only permitted route is to refuse on valid grounds, such as property suitability or building restrictions.
Fixed penalty charges for late rent
Some older agreements include a flat daily penalty for late rent — for example, £5 per day. That’s not correct under the Tenant Fees Act. The only late charge allowed is interest, and it can only be applied after the rent is more than 14 days overdue. The rate is the Bank of England base rate plus 3% per year, calculated on the overdue amount. A fixed penalty is unenforceable, and a landlord cannot deduct it from your deposit either.
Automatic rent increase clauses
Many tenancy agreements include a clause that raises rent by a fixed percentage each year, or by RPI or CPI. Under the current rules for assured periodic tenancies, those clauses can’t be used as a working rent-increase mechanism. The correct process is the statutory Section 13 procedure using Form 4A. The landlord must give at least two months’ notice and cannot use Section 13 more than once in any 52-week period. If you’re served a rent increase that doesn’t follow this process, you can refer it to the First-tier Tribunal, which cannot set the rent above the landlord’s proposed figure.
Clauses that discriminate against benefit recipients or families
Tenancy agreements that say “No DSS”, “working tenants only”, or “no children” are unlawful. Landlords can carry out affordability checks, but they must include benefit income in those checks. Excluding tenants because they receive benefits or have children is discrimination. The Tenant Fees Act 2019 and the Renters’ Rights Act 2025 both strengthen protections here, and local authorities can take enforcement action.
How to check a tenancy agreement before you sign
Reading a tenancy agreement carefully before signing is the only way to catch unlawful clauses. Here’s what to look for, in order.
Check the tenancy type
If the agreement says “assured shorthold tenancy”, “fixed term”, “expiry date”, or “break clause”, it may be using an old template. For most new private tenancies in England, the correct type is an assured periodic tenancy. The landlord must give you a written statement of terms before you move in. If they don’t, they can face enforcement action.
Look for banned fees
Scan the agreement for any mention of credit check fees, reference fees, admin fees, inventory fees, check-out fees, or renewal fees. All of these are banned under the Tenant Fees Act 2019. If you spot one, flag it. The landlord cannot enforce it, and you should not pay it.
Check the deposit amount
Your tenancy deposit should be no more than five weeks’ rent if your annual rent is under £50,000, or six weeks if it’s £50,000 or more. If the deposit is over the cap, ask for the excess to be refunded. The landlord must also protect your deposit in an authorised tenancy deposit scheme and provide you with the prescribed information.
Review the rent increase clause
If the agreement includes an automatic annual rent increase, a stepped rent, or a clause tied to RPI or CPI, it’s unlikely to be enforceable for an assured periodic tenancy. Rent increases must follow the Section 13 procedure. The landlord cannot raise the rent in the first 52 weeks, and must give at least two months’ notice.
Look for mandatory cleaning clauses
Any clause that requires professional cleaning at the end of the tenancy is unlawful. You must return the property in the same condition as when you moved in, allowing for fair wear and tear. The landlord can only deduct from the deposit for cleaning if they have evidence — a signed inventory, dated photographs, and a check-out report. A strong inventory at move-in is your best protection.
Check the pet policy
If the agreement says “no pets”, that’s not a blanket ban. You have the right to request a pet, and the landlord must respond within 28 days. If they refuse without a valid reason, the refusal is unreasonable. The agreement cannot require pet insurance, a separate pet deposit, or extra pet rent.
Verify the landlord’s details
Your tenancy agreement should include the landlord’s full name and address, and the address of the property. If the landlord uses a letting agent, the agent’s details should also be listed. If you’re unsure about any clause, you can get a professional review of the agreement before signing.
Understand the possession process
Under the Renters’ Rights Act 2025, the Section 21 no-fault eviction process is abolished. A landlord can only regain possession using specific grounds under Section 8 of the Housing Act 1988. If the agreement mentions Section 21, that clause is no longer effective for new tenancies. The landlord must follow the correct notice and court process for any possession claim.
Frequently asked questions about tenancy fees and agreements
Can my landlord charge me for a reference check? ▾
What happens if my deposit is over the legal cap? ▾
Can my landlord force me to use a professional cleaner? ▾
Can my landlord increase the rent whenever they want? ▾
What is a holding deposit and how much can it be? ▾
What should I do if my tenancy agreement has an unlawful clause? ▾
Why the Renters’ Rights Act 2025 changes the game for tenants and landlords
The Renters’ Rights Act 2025 isn’t just about banning Section 21 evictions. It introduces a new enforcement framework that gives local authorities wider powers to investigate and penalise landlords who use unlawful tenancy agreements. That includes serious or repeated breaches that can lead to civil penalties of tens of thousands of pounds. For tenants, the message is clear: an agreement that looks official isn’t necessarily legal. The research from the Landlords Guild and the Law Society shows that many tenancy templates still contain clauses that don’t hold up under current law. The act comes into force in three phases beginning 1 May 2026, so now is the time to check your agreement.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read The Hidden Costs of Buying a Home in Canada That No One Talks About.
Sources and Further Reading
How Interest Rate Hikes Are Changing the Housing Market in Canada — Understand how rising rates affect rental costs and property affordability, with parallels to the UK market.
Landlords Guild (2025). Does Your Tenancy Agreement Break the Law? 🔗
The Law Society (2025). Renters’ Rights Act 2025: what’s changing and when. 🔗
EVO Property Management (2026). End of Tenancy Cleaning Laws UK 2026 Guide for Housing Associations. 🔗
UK Government (2019). Tenant Fees Act 2019. 🔗
