Nearly one in four renters in England have paid a fee they later discovered was not legally required, according to data from the Shelter legal guidance on tenancy fees. That figure tells me something important: the rules around what landlords and agents can charge are still widely misunderstood, even years after the Tenant Fees Act came into force. If you are renting or about to sign a new tenancy, knowing exactly which fees are legal and which are banned could save you hundreds of pounds.
I have been writing about renting rules for years, and the question I hear most often is some version of: “Can they really charge me for that?” The answer is usually no — but only if you know where to look. The government guidance on permitted tenancy fees is clear, but it is not always easy to apply to a real situation. Here is what you actually need to know.
What counts as a permitted tenancy fee
The first thing to understand is that the law does not give landlords and agents a free hand. Under the Tenant Fees Act 2019, as amended by the Renters’ Rights Act, only specific payments are allowed. Anything outside that short list is a prohibited payment — also called a banned fee. That includes common charges like reference check fees, administration fees, and credit check fees, all of which were routine before the ban.
What I tend to notice is that tenants often assume a fee must be legal because it is written into the contract. That is not how it works. If the fee is not on the government’s permitted list, the clause is void — even if you signed it. The rules apply to assured shorthold tenancies, most licences to occupy housing, and student accommodation provided by specified institutions. They do not apply to social housing, long leases, holiday lets, or properties with an annual rent above £100,000.
Why the cap on tenancy change fees matters for renters
Let me give you a realistic scenario. You are six months into a tenancy and your partner needs to be added to the agreement. The agent says the change will cost £120 to cover paperwork and referencing. Under the rules, the maximum they can charge for a tenant-requested change is £50. If they claim the cost is higher, they must provide written evidence showing why. Most cannot, because the actual administrative work rarely exceeds that figure.
This matters because the government guidance on tenancy change fees is explicit: you do not have to charge a fee at all, and if you do, it must be reasonable. The £50 cap applies to straightforward changes like adding or removing a person. If the landlord wants more, the burden of proof is on them, not you.
From my perspective, the change fee cap is one of the most underused protections in the Tenant Fees Act. Tenants pay inflated fees simply because they do not know the limit exists. If you are facing a change fee above £50, push back politely and cite the legislation. You will often find the fee drops immediately.
Where tenants get caught out by hidden fees
The most common mistake I see is tenants paying prohibited fees without realising it. A survey by Shelter found that nearly a quarter of private renters had paid a banned fee — often for things like reference checks, administration, or credit checks. These fees were standard before 2019, but they are now illegal for most tenancies.
→ Scroll right to see all columns
| Fee type | Maximum allowed | Common where? |
|---|---|---|
| Tenancy deposit | 5 weeks’ rent (under £50k/yr) | All private tenancies |
| Holding deposit | 1 week’s rent | Before signing agreement |
| Change of tenancy | £50 (or evidenced higher cost) | Mid-tenancy changes |
| Late rent fee | 3% above Bank of England base rate | Rent overdue by 14+ days |
| Lost key replacement | Reasonable cost with evidence | Lost or damaged keys |
Paying for reference or credit checks
This is the biggest trap. Before the Tenant Fees Act, it was normal for agents to charge £50–£150 per tenant for referencing. That is now a prohibited payment. If an agent asks you to pay for a reference check, you can refuse. The only upfront payment they can take before you sign is a refundable holding deposit capped at one week’s rent.
Accepting a holding deposit that is too high
Another common error is paying a holding deposit larger than one week’s rent. The cap is per tenancy, not per tenant. If three people are sharing a flat on one agreement, the total holding deposit is one week’s rent split between them — not three weeks’ worth. If you have overpaid, you are entitled to a refund of the excess within seven days.
Not challenging a late rent fee that is too high
Late rent fees are allowed, but they are capped. The maximum is 3 per cent above the Bank of England base rate, and you can only be charged on the amount that is overdue. Crucially, the rent must be at least 14 days late before any fee can apply. If an agent charges a flat £25 late fee on day one, that is a prohibited payment.
Paying for a tenancy change without asking for evidence
As I mentioned earlier, the £50 cap applies unless the landlord can show higher costs. What I see often is tenants paying £75 or £100 for a simple name change because they do not ask for a breakdown. My advice: always request a written cost breakdown before agreeing to any change fee above £50. If they cannot provide one, the excess is not enforceable.
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How to handle lease transfer fees and protect yourself
If you are facing a lease transfer — whether adding a partner, swapping a housemate, or assigning the tenancy to someone else — the process is straightforward if you know the rules. Here is what to do at each stage.
Check whether the fee is for a change or a surrender
A tenant-requested change to the tenancy agreement is capped at £50. But if you are ending the tenancy early and the landlord agrees to a surrender, different rules apply. Early termination fees are not capped at £50 — they can be the rent you would have paid during the notice period. The key distinction is whether you are staying under the same agreement with a modification, or ending it entirely. If you are unsure, ask the agent to confirm in writing which category the fee falls under.
Request a written breakdown of any fee above £50
If the landlord or agent says the change will cost more than £50, ask for a written itemised breakdown. The government guidance on tenancy fees states that any fee above £50 must be reasonable and evidenced. Common examples of legitimate higher costs include legal fees for a deed of assignment or a formal licence to assign. If the breakdown looks vague — “administration fee” or “processing charge” — challenge it.
Get the agreement in writing before you pay
Never pay a lease transfer fee based on a verbal conversation. Ask for the revised tenancy agreement or a formal variation document that shows the change and the fee. Once you have it in writing, you can check whether the fee matches the permitted list. If it includes a prohibited charge, you can refuse to pay and the clause is not binding.
Know what happens from 1 May 2026
The Renters’ Rights Act introduces additional changes from 1 May 2026. From that date, landlords cannot ask for rent before the tenancy agreement is signed, and if a tenant offers it, the landlord must not accept it. The ban on rent in advance only applies to tenancies entered into after that date. For existing tenancies that were assured shorthold and become fully assured on 1 May 2026, the banned fees rules also apply to fees paid before that date during the assured shorthold period. This is a significant change, and it means that if you are in a periodic tenancy after May 2026, any prohibited fee you paid earlier may become recoverable.
- 1Identify the type of feeIs it a change to the existing tenancy (capped at £50) or an early surrender (uncapped but limited to lost rent)? Check the permitted list from the Tenant Fees Act.
- 2Request written evidenceIf the fee is above £50, ask for a written breakdown. The landlord must show why the cost is reasonable. If they cannot, the excess is a prohibited payment.
- 3Refuse prohibited fees in writingIf the fee is not on the permitted list, write to the landlord or agent stating that the payment is banned under the Tenant Fees Act and you will not pay it. Keep a copy.
- 4Recover fees already paidIf you paid a prohibited fee in the past, you can apply to the First-tier Tribunal (Property Chamber) for a repayment order. The tribunal can order the landlord to refund the full amount plus a penalty.
If you are dealing with a dispute over fees and need legal guidance, speaking to a tenant and landlord lawyer can help clarify your rights before you take formal action. A quick consultation can save you from paying a fee you do not owe.
Frequently asked questions about lease transfer fees
Can a landlord charge a fee for adding a new tenant to the agreement? ▾
What happens if I already paid a banned fee? ▾
Is a fee for changing the name on a tenancy the same as a surrender fee? ▾
Do the fee caps apply to lodgers and resident landlords? ▾
Can a letting agent charge a fee for providing a reference after I move out? ▾
What should I do if my landlord threatens eviction over an unpaid fee? ▾
The core takeaway is simple: the law is on your side when it comes to lease transfer fees, but only if you know the limits. The Tenant Fees Act gives you clear protections — capped deposits, banned reference fees, and a £50 ceiling on most tenancy changes. My advice is to keep a copy of the permitted fees list saved on your phone. When an agent quotes a fee, compare it against that list before you agree to anything. If this was useful, you might also want to read Understanding Lease Property Damage Liability for Renters.
Sources and Further Reading
Future-Proof Your Lease: Essential Apartment Leasing Considerations for the UK — A broader look at lease terms and what to watch for before signing.
Understanding Apartment Lease Buyout Clauses in the UK — Explains how early exit fees work and when they apply.
Fees you can charge as part of a tenancy. Gov.uk, 2025.
Tenancy fees: legal guidance for renters. Shelter England, 2025.
