Permitted and Prohibited Charges Explained
This page explains the rules around letting agent and landlord fees in England under the Tenant Fees Act 2019. It outlines which payments are legally permitted, which are prohibited, and the requirements for displaying fees and related information.
The guidance applies to most private residential tenancies in England and is designed to make the process clear whilst protecting tenants from unfair charges.
Who does the Tenant Fees Act apply to?
This guidance applies to:
- Letting agents
- Landlords
- Property management companies
It covers:
- Assured Shorthold Tenancies (ASTs)
- Student lettings
- Licences to occupy
These rules apply in England only. Different legislation applies in Scotland, Wales, and Northern Ireland.
Overview of the Tenant Fees Act
Since June 2019, the Tenant Fees Act has restricted what landlords and letting agents can charge tenants. Most fees that were previously charged to tenants are now banned.
As a result, letting agent fees are generally paid by landlords rather than tenants. The legislation aims to make renting fair, clear, and affordable, whilst improving transparency across the private rented sector.
Official guidance is published by the GOV.UK, and enforced by local authorities.
Permitted Payments
Only the following payments may be charged to tenants under current law:
Rent
The rent agreed in the tenancy agreement.
Tenancy Deposit
It is capped at five weeks’ rent, or six weeks’ rent where the annual rent exceeds £50,000.
Holding Deposit
It is capped at one week’s rent, taken to reserve a property whilst referencing is completed.
Default Fees
Permitted only in specific situations, such as:
- Replacement of lost keys or security devices
- Late payment of rent (subject to statutory limits)
Any default fee must be reasonable and supported by evidence.
Variation, Assignment, or Novation of a Tenancy
It is capped at £50, unless higher costs can be reasonably demonstrated.
Utilities and Other Charges
Tenants may be required to pay council tax, utilities, TV licence, and communication services if these are stated in the tenancy agreement.
Prohibited Payments
The following charges must not be requested from tenants:
- Viewing fees
- Referencing fees
- Administration or setup fees
- Inventory or check-in/check-out fees
- Tenancy renewal fees
- Professional cleaning fees (unless required due to tenant breach)
If a prohibited payment is taken, it must be refunded within the legally required timeframe.
Display of Fees and Transparency Requirements
Letting agents are legally required to clearly display their fees.
This includes:
- A full list of landlord fees
- Details of any permitted tenant payments
- Confirmation of membership of a government-approved redress scheme
- Details of client money protection (CMP), where applicable
Fee information must be:
- Clear and easy to understand
- Displayed on the agent’s website
- Displayed at each physical office location
- Inclusive of VAT, or clearly state where VAT applies
Failure to display fees correctly may result in enforcement action.
Information For Tenants and Landlords
Before entering into a tenancy, letting agents should ensure that all relevant information is provided clearly, including:
- The total amount payable
- Any conditions attached to permitted payments
- The circumstances under which default fees may apply
This helps tenants and landlords understand their obligations and avoids disputes later.
Enforcement and Penalties
Local authorities are responsible for enforcing the Tenant Fees Act.
Penalties may include:
- Financial penalties of up to £5,000 for a first breach
- Civil penalties of up to £30,000 for repeat breaches
- Restrictions on serving a Section 21 notice whilst prohibited payments remain unpaid
Repeated breaches may result in prosecution.
How HMO Property London
HMO Property London operates in full compliance with the Tenant Fees Act. Our fee structures are transparent, clearly displayed, and explained to landlords and tenants alike.
We focus on lawful processes, accurate documentation, and compliance-led property management, helping landlords maximise returns whilst ensuring tenants are treated fairly.
Disclaimer
This page provides general guidance only, not legal advice. Landlords and letting agents should refer to official government guidance or talk to our experts for updated information.