What fees can tenants legally be charged?

Since the introduction of the Tenant Fees Act in June 2019, letting agents and landlords in England are no longer allowed to charge renters a wide range of fees. The legislation was introduced to create fairness and transparency for tenants, but it can still be confusing to know what is and isn’t allowed.

Here, Carpenter Surveyors provides a clear overview of the fees you can lawfully be charged as a tenant, and what is now banned.

Legal Charges: What You Can Be Asked to Pay

Under the current rules, tenants in England can only be charged for the following:

• Rent: As agreed in your tenancy agreement.

• Tenancy deposit (security deposit): This must be refundable and is capped at five weeks' rent (or six weeks if your annual rent exceeds £50,000).

• Holding deposit: A refundable sum capped at one week's rent. This may be requested to reserve a property and can be retained for up to 14 days before the tenancy agreement is finalised.

• Utility bills and services: Including energy, water, broadband, TV licence, Council Tax and similar running costs.

• Contract changes: If you request a change to the tenancy agreement mid-tenancy, you can be charged up to £50.

• Late rent charges: Interest can be charged on rent that is over 14 days late, but only at a maximum of 3% above the Bank of England base rate.

• Cost of repairs: Reasonable costs may be deducted for repairs or replacements caused by tenant damage. Landlords must provide evidence of these costs.

• Rent in advance: Most landlords require at least one month's rent in advance, but there is no legal cap on the amount. You can request the landlord reconsider if more is demanded.

In most cases, you should expect to pay a holding deposit, a tenancy deposit, and at least one month’s rent in advance before moving in.

Existing Tenancies: Do the Rules Still Apply?

Yes — the tenant fee ban applies to both new and existing tenancies. Regardless of when your agreement began, landlords and agents are not permitted to charge any banned fees.

What If You Are Charged a Banned Fee?

If you are asked to pay a prohibited fee, the landlord or letting agent has 28 days to return it. Failure to do so can result in a fine of £5,000 for a first offence.

You have the right to report any breaches to Trading Standards. Repeat offenders may face prosecution and even a ban on letting properties in the future.

It’s important to note that if a landlord has charged you a banned fee and has not returned it, they cannot issue you with a Section 21 eviction notice until it is repaid.

What Are Deposit Protection Schemes?

Your deposit must be protected in a government-backed scheme if you are on an assured shorthold tenancy. This ensures your money is safeguarded throughout the tenancy and that any deductions are properly managed at the end.

There are two types of scheme:

• Custodial: The scheme holds the deposit for free.

• Insured: The deposit is held by the landlord or agent, who pays a fee to protect it with the scheme.

Your landlord has 30 days from receiving your deposit to confirm it has been placed in a protection scheme. These schemes are also responsible for handling any disputes over deductions when the tenancy ends.

What Fees Are Banned?

The following charges are no longer allowed under the Tenant Fees Act:

• Administrative fees: Including drawing up or issuing contracts. These often cost tenants £300–£350 prior to the ban.

• Reference checks: Previously charged at £75–£100 per person.

• Credit checks: Previously cost between £50 and £100 per tenant.

• Tenancy renewal fees: These could cost up to £180 just to renew your agreement.

• Move-out inspections: Charges for checking the property’s condition at the end of a tenancy could be as high as £300.

These types of charges are now considered unlawful and should not appear on your tenancy paperwork.

If you are unsure whether a fee is legal, seek professional advice. At Carpenter Surveyors, we’re here to help you understand your rights and responsibilities as a tenant or landlord.

For further information or to discuss any concerns with a professional surveyor, contact the Carpenter Surveyors team today.