Landlord Compliance

Tenant Fees Act 2019 — Landlord Guide

The Tenant Fees Act 2019 bans landlords and letting agents from charging most fees to tenants. Non-compliance can prevent you from serving a valid eviction notice.

We advise landlords on compliance with the Tenant Fees Act, permitted and prohibited payments, deposit caps, and the impact on possession proceedings.

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Compliance Advice
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What You Can and Cannot Charge

Prohibited and Permitted Payments

Prohibited Payments

  • Administration fees
  • Referencing fees
  • Credit check fees
  • Inventory fees
  • Check-in / check-out fees
  • Tenancy renewal fees
  • Professional cleaning fees (unless damage caused)
  • Guarantor arrangement fees

Fine: up to £5,000 (first offence) / £30,000 (repeat)

Permitted Payments

  • Rent
  • Security deposit (capped at 5 weeks' rent)
  • Holding deposit (capped at 1 week's rent)
  • Early termination payments (at tenant's request)
  • Utilities, council tax, TV licence
  • Late payment fee (after 14 days, capped at 3% above Bank of England base rate)
  • Lost key / security device replacement (at reasonable cost)

Deposit Limits

Deposit Caps Under the Tenant Fees Act

Security Deposit

5 weeks' rent

Where annual rent is below £50,000. Must be protected in a government-approved scheme.

Security Deposit (High Rent)

6 weeks' rent

Where annual rent is £50,000 or above. Must be protected in a government-approved scheme.

Holding Deposit

1 week's rent

Must be repaid within 15 days of tenancy starting or within 7 days of a decision not to proceed.

Critical for Landlords

How the Tenant Fees Act Affects Possession Proceedings

One of the most significant — and often overlooked — consequences of the Tenant Fees Act is its impact on possession proceedings. If a landlord has taken a prohibited payment and has not repaid it, they may be unable to obtain a possession order.

This means a prohibited payment taken at the start of a tenancy — perhaps years ago — can prevent you from evicting a tenant today. The prohibited payment must be repaid before possession proceedings can succeed.

We advise landlords on compliance before serving any notice, and on remedying any prohibited payments to ensure possession proceedings are not blocked.

Before Serving Notice

  • Check all payments taken at the start of the tenancy
  • Identify any prohibited payments (admin fees, referencing fees, etc.)
  • Repay any prohibited payments before serving a Section 8 notice
  • Ensure the security deposit does not exceed the cap
  • Ensure the deposit is protected in an approved scheme
  • Keep records of all payments and repayments

FAQs

Tenant Fees Act 2019 — Frequently Asked Questions

What is the Tenant Fees Act 2019?
The Tenant Fees Act 2019 came into force on 1 June 2019 and bans landlords and letting agents from charging tenants most fees in connection with a tenancy. It applies to all assured shorthold tenancies, student accommodation and licences to occupy in England. The Act limits what landlords can charge to a defined list of "permitted payments" and caps security deposits at five weeks' rent (or six weeks' rent where annual rent exceeds £50,000).
What payments are prohibited under the Tenant Fees Act?
Prohibited payments include: administration fees, referencing fees, credit check fees, inventory fees, check-in/check-out fees, tenancy renewal fees, fees for professional cleaning at the end of the tenancy (unless the tenant has caused damage), and any other fee not listed as a permitted payment. Charging a prohibited payment is a civil offence and can result in a fine of up to £5,000 for a first offence and up to £30,000 for a repeat offence.
What payments are permitted under the Tenant Fees Act?
Permitted payments under the Tenant Fees Act 2019 are: (1) Rent; (2) A refundable tenancy deposit capped at 5 weeks' rent (or 6 weeks' where annual rent exceeds £50,000); (3) A refundable holding deposit capped at 1 week's rent; (4) Payments for early termination of the tenancy at the tenant's request; (5) Payments for utilities, council tax, communication services and TV licence; (6) Default fees for late payment of rent (after 14 days) and replacement of lost keys/security devices (at reasonable cost).
How does the Tenant Fees Act affect possession proceedings?
If a landlord has taken a prohibited payment and has not repaid it, they cannot serve a valid Section 8 notice (on certain grounds) or obtain a possession order until the prohibited payment has been repaid. This is a significant trap for landlords — a prohibited payment taken at the start of the tenancy can prevent possession proceedings years later. We advise landlords on compliance and on remedying any prohibited payments before serving notice.
What is the deposit cap under the Tenant Fees Act?
The Tenant Fees Act 2019 caps security deposits at five weeks' rent where the annual rent is below £50,000, and six weeks' rent where the annual rent is £50,000 or above. A holding deposit (paid to reserve a property) is capped at one week's rent. Any deposit taken above these caps is a prohibited payment and must be repaid. Holding deposits must be repaid within 15 days of the tenancy starting (or within 7 days of a decision not to proceed).

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