Tenant Fees Act explained: what landlords and tenants need to know
The Tenant Fees Act bans most up-front and ongoing charges to tenants in England. You should only pay rent, a capped deposit, and a few permitted fees in specific situations.
❌ What fees are banned?
- ❌ Viewing fees, admin fees, inventory fees, check-out fees.
- ❌ Referencing fees or charges for setting up a tenancy.
✅ Permitted payments
- ✅ Rent (as agreed in the tenancy).
- ✅ Tenancy deposit: Capped at 5 weeks’ rent (or 6 weeks if annual rent ≥ £50,000).
- ✅ Holding deposit: Up to 1 week’s rent (refunded/offset subject to statutory rules).
- ✅ Default fees: E.g. lost keys (reasonable cost) or late rent interest (as per Act).
- ✅ Changes to the tenancy: If requested by the tenant (capped by regulations).
💰 Deposits & protection
Deposits must be protected in a government-approved scheme, and prescribed information provided to tenants within statutory timeframes.
📑 Deposit caps explained
The deposit cap in the UK means that landlords and agents must stick to set limits when taking a tenancy deposit. These are:
- No more than five weeks’ rent if the annual rent is under £50,000
- No more than six weeks’ rent if the annual rent is £50,000 or more
This cap applies in all cases, including where tenants have pets or other requirements. Deposits must be registered in a government-approved scheme, and tenants must be given written confirmation within 30 days.
💰 Holding deposit rules
Holding deposits are used to reserve a property before a tenancy is signed. The maximum allowed is one week’s rent. They must be:
- Returned in full or applied to the rent/tenancy deposit if the tenancy goes ahead.
- Kept only in certain circumstances (e.g. tenant withdraws, provides false information, or fails right-to-rent checks).
Clear written terms must always be provided before the deposit is taken.
⚠️ Consequences of breaking the rules
Charging a banned fee or unfairly keeping a deposit can lead to enforcement action. Local councils and trading standards teams can impose:
- ⚠️ Fines up to £5,000 for a first offence
- ⚠️ Further fines up to £30,000 for repeat/serious breaches
- ⚠️ Support for tenants to recover unlawful charges
- ⚠️ Banning orders for persistent non-compliance
Understanding these rules helps landlords stay compliant and protects tenants from unfair charges.
💬 FAQs
Do I pay renewal fees? ❌ No. Renewal or exit admin fees are banned.
Can my rent be increased? ✅ Only in line with your AST terms and legislation (notice rules apply).
Can landlords still charge tenants for professional cleaning? 🧹 Only if the tenant has clearly breached the agreement. General wear and tear are not considered a valid reason.
Are larger deposits allowed if the tenant has a pet? 🐾 Yes, but the total deposit must still fall within the capped amount.
Can tenants voluntarily agree to pay additional fees? ❌ No. Even with consent, any fee not listed as permitted is considered unlawful.
Do the rules apply to company lets? 🏢 No. The act only applies to tenancies where the occupant is an individual, not a business or company.