Before the Tenant Fees Act came into force in 2019, it was not unusual for a letting agent to charge a new tenant several hundred pounds just for the privilege of having their references checked. I have been writing about the UK rental market long enough to remember when those fees were simply accepted as the cost of finding a home. The change in the law was significant, but confusion about what landlords and agents can and cannot charge remains widespread. Here is what you actually need to know.
These caps are not suggestions — they are the legal limits. If you are asked to pay more than these amounts, you are being asked for a prohibited payment. The law applies to assured shorthold tenancies, student accommodation, and licences to occupy housing in England. It does not apply to social housing, shared ownership leases, or short-term holiday lets. If you are unsure whether your tenancy is covered, the safest assumption is that it is. I have seen too many renters pay fees they did not owe simply because they did not know the rules had changed. A good first step is to read up on the hidden costs of renting in the UK so you know what to expect before you sign anything.
What the Tenant Fees Act actually means for you
The core idea is simple: a landlord or letting agent can only charge you for things that are explicitly listed in the law. If it is not on the list, it is a prohibited payment. That means no fees for reference checks, no admin fees for setting up the tenancy, no charges for credit checks, and no fees for renewing the tenancy. The list of permitted payments includes rent, a refundable tenancy deposit capped at 5 or 6 weeks’ rent, a refundable holding deposit capped at one week’s rent, a fee of up to £50 for changing the tenancy at your request, a fee for replacing a lost key or security device, and a late payment fee on rent that is at least two weeks overdue. That is essentially it.
What I tend to notice is that many renters still assume that a letting agent’s “administration fee” is a normal part of moving in. It is not. It has been illegal for over five years. If an agent tries to charge you for a reference check or a credit check, you can politely point them to the law. If they persist, you can report them to the local authority trading standards team, who can issue a financial penalty of up to £5,000 for a first offence.
Where renters get caught out by fees they do not expect
The most common mistake I see is renters paying a holding deposit and then losing it for reasons that are not the law’s fault. Under the Tenant Fees Act, a landlord must refund the holding deposit within 7 days unless the tenant fails a Right to Rent check, withdraws from the application, does not respond to progress the tenancy, or gives false or misleading information that affects their suitability. If you simply change your mind, you lose the deposit. But if the landlord decides not to rent to you for any other reason, they must return it. I have heard from renters who were told the landlord “found someone else” and the deposit was kept. That is not legal. If the landlord does not return it within 7 days, they may face a financial penalty.
Another area where people get caught is the late payment fee. You cannot be charged a late fee until the rent is at least 14 days overdue. The maximum rate is 3 per cent above the Bank of England’s base rate, and it applies only to the amount that is overdue. If your rent is £1,000 and you are 15 days late, the fee is calculated on that £1,000, not on the full month’s rent. I have seen agents try to charge a flat £50 late fee, which is almost certainly illegal unless it works out to less than 3 per cent above base rate on the overdue amount. If you are unsure about any fee, it is worth getting clarity on check-in fees before you move in.
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| Fee type | Maximum amount | When it applies |
|---|---|---|
| Tenancy deposit | 5 weeks’ rent (under £50k/year) or 6 weeks’ rent (£50k–£100k/year) | Before or at the start of the tenancy |
| Holding deposit | 1 week’s rent | To reserve a property while checks are done |
| Tenancy change fee | £50 (or higher if proven reasonable) | When the tenant requests a change |
| Late rent fee | 3% above Bank of England base rate on overdue amount | Only after rent is 14 days overdue |
| Key replacement | Reasonable cost with written evidence | When a key or security device is lost |
Holding deposits that vanish without explanation
This is the one that frustrates me most. A tenant pays a week’s rent to hold a flat, the landlord takes it off the market, and then something goes wrong. If the tenant fails a Right to Rent check, the deposit can be kept. If the tenant provides false information that affects their suitability, the deposit can be kept. But if the tenant simply misspells a previous address or forgets to list an old tenancy, that is not grounds to keep the deposit. The law is clear: incorrect information that does not affect suitability must result in a refund. If a landlord keeps the deposit without a valid reason, they must return it within 7 days or face a penalty.
Fees for things that are already included in the rent
Some landlords try to charge separate fees for council tax, utilities, or a TV licence. These can be included in the rent if they are agreed in the tenancy agreement, but they cannot be charged as a separate, additional payment to the landlord. If your tenancy agreement says the rent includes council tax, the landlord cannot then ask you to pay council tax directly to them on top. The same applies to a TV licence. If you are being asked to pay a separate fee for something that should be covered by the rent, that is a prohibited payment.
Early termination fees that exceed the loss
If you need to end a tenancy early and do not give the correct notice, the landlord can charge a fee. But that fee cannot be more than the rent they would have received if you had given the right amount of notice. If your notice period is one month and you leave without notice, the maximum fee is one month’s rent. I have seen agents try to charge two or three months’ rent as a “penalty”. That is not allowed. The fee must reflect the actual loss, nothing more.
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How to protect yourself from illegal fees and what to do if you are charged one
The best protection is knowing the rules before you pay anything. When you view a property, ask the agent or landlord for a written list of all fees. Letting agents are required by law to publish a list of fees on their website and, if they advertise on a third-party site like Rightmove or Zoopla, they must either list the fees in the advert or include a link to their website with the list. If they cannot or will not provide a written list, that is a red flag.
Check every fee against the permitted list
Before you pay anything, compare it to the list of permitted payments. If it is not rent, a tenancy deposit, a holding deposit, a tenancy change fee, a key replacement fee, or a late rent fee, it is almost certainly prohibited. If an agent asks for a “check-in fee” or “administration fee”, you can say no. If they insist, you can report them to the local authority trading standards team. The penalty for a first offence can be up to £5,000, and for further offences, it can be an unlimited fine or even a criminal prosecution.
Get the holding deposit terms in writing
When you pay a holding deposit, agree in writing how long it will be held. The standard period is 15 calendar days, but you can agree a longer or shorter period in writing. If the landlord does not make a decision within that time, they must return the deposit. If they decide not to rent to you for any reason other than the permitted exceptions, they must return it within 7 days. If they do not, you can take them to the small claims court or report them to trading standards. If you need legal advice on a dispute, speaking to a tenant landlord lawyer can help clarify your options before you take formal action.
Keep records of every payment and communication
Save emails, screenshots of adverts, and receipts for every payment. If a dispute arises, you will need evidence. The law puts the burden on the landlord or agent to prove that a fee is permitted. If they cannot show you written evidence that a key replacement cost £50, for example, you do not have to pay it. A simple way to keep everything organised is to use a rental payment record book to track what you have paid and when.
Know what to do if you are charged a prohibited fee
If you have already paid a fee that you believe is prohibited, you can ask for it back in writing. If the landlord or agent refuses, you can apply to the First-tier Tribunal (Property Chamber) for a repayment order. The tribunal can order the landlord to repay the fee and can also impose a penalty of up to £5,000. You do not need a solicitor to do this, but the process is easier if you have clear records. If the dispute involves a deposit that was not protected in a government-approved scheme, you may also be able to claim compensation of up to three times the deposit amount.
- 1Identify the prohibited feeCompare the charge against the permitted list. If it is not rent, a capped deposit, a holding deposit, a change fee, a key fee, or a late rent fee, it is likely prohibited.
- 2Request a refund in writingSend a clear, polite email or letter explaining why the fee is prohibited and asking for a refund within 14 days. Keep a copy.
- 3Report to trading standardsIf the landlord or agent refuses, contact your local authority trading standards team. They can investigate and issue a penalty.
- 4Apply to the tribunalFor unresolved disputes, apply to the First-tier Tribunal (Property Chamber) for a repayment order. You can do this without a solicitor.
Can a landlord charge a fee for a guarantor? ▾
What happens if a landlord does not return my holding deposit within 7 days? ▾
Are fees for pets allowed under the Tenant Fees Act? ▾
Can a letting agent charge a fee for renewing a tenancy? ▾
Does the Tenant Fees Act apply to lodgers? ▾
What should I do if I am asked to pay rent before the tenancy agreement is signed? ▾
The Tenant Fees Act has made renting fairer, but it only works if you know your rights. The single most important thing you can do is never pay a fee without checking whether it is permitted. If it is not on the list, you do not owe it. If you are unsure, ask for it in writing and take your time to verify it. If this was useful, you might also want to read how to avoid dodgy landlords in the UK.
Sources and Further Reading
Tips for finding affordable rentals in the UK — Practical advice on budgeting and searching for a rental property without overspending.
Fees you can charge as part of a tenancy. GOV.UK, 2025.
Tenancy fees: what landlords and agents can charge. Shelter England, 2025.
