Tenant Fees Act 2019 UK: Permitted & Banned Fees

Overview

The Tenant Fees Act 2019 is legislation that restricts the payments a landlord or letting agent in England can require from a tenant in connection with a tenancy. The starting point of the Act is simple: unless a payment is specifically listed as permitted, it cannot be charged.

That flips the old model on its head, where tenants were often handed a menu of administrative fees covering everything from referencing to inventory checks. The Act came into force on 1 June 2019. For tenancies granted, renewed, or entered into from that date onwards, the rules applied immediately.

Pre-existing tenancies were given a transition window before the full rules bit. The law sits alongside the existing tenancy deposit protection regime and the standard framework for assured shorthold tenancies, so it should be read as part of the wider lettings rulebook rather than a standalone code. Breaches can lead to financial penalties and, in repeat cases, more serious enforcement action by trading standards.

Key steps

1. Check whether the tenancy is in scope. The Act applies to assured shorthold tenancies, student lets in the private sector, and licences to occupy housing in England. Scotland, Wales and Northern Ireland have their own regimes. If the letting is outside England, different rules will govern what can be charged. 2. Work through the permitted payments list. Rent, a refundable holding deposit, a tenancy deposit, utilities, council tax, communication services, and a limited set of default and variation fees are the main categories allowed. Anything not on the list is treated as prohibited, even if both sides agree to it in the tenancy agreement. 3. Apply the caps on deposits correctly. The holding deposit is limited to one week's rent. The tenancy deposit is capped by reference to annual rent, with a lower cap where the rent sits below a statutory threshold. Getting these figures wrong is one of the most common causes of complaints, so the arithmetic needs to be done carefully for each let. 4. Draft default fees into the tenancy properly. Charges for late rent or lost keys and security devices can only be recovered if they are written into the agreement and meet the Act's conditions, including reasonableness and, for late rent, a waiting period before interest can be charged. Vague or blanket clauses will not stand up. 5. Keep evidence for any charge you pass on. Whether it is a variation fee above the standard cap, an early termination charge, or a replacement lock, you need to be able to show the actual cost incurred. Records, invoices and a clear paper trail are what turn a disputed charge into a defensible one.

Common questions