Tenant Fees Act: What Landlords Cannot Charge

The Tenant Fees Act 2019, which came into force on 1 June 2019, bans landlords and letting agents from requiring tenants to make any payment except those expressly permitted by the Act. Banned charges include:

• Referencing fees or credit check fees
• Administration or set-up fees
• Inventory fees (check-in or check-out)
• Tenancy renewal fees or extension fees
• Professional cleaning fees (unless the property was professionally cleaned at the start and a receipt was provided)
• Pet deposits or non-refundable pet fees (over and above the security deposit cap)
• Guarantor fees
• Key cutting or duplicate key fees (except as permitted default fees)

Any clause in a tenancy agreement requiring you to pay a prohibited payment is void and unenforceable. You can refuse to pay such charges and demand repayment of any already paid.

The only payments a landlord or letting agent can require a tenant to make are:

• Rent: The amount specified in the tenancy agreement.
• Refundable security deposit: Capped at five weeks' rent where the annual rent is under £50,000 (six weeks' rent for annual rent of £50,000 or more).
• Refundable holding deposit: Capped at one week's rent. Must be refunded within 15 days (the deadline period) unless you fail the Right to Rent check, provide false information, or withdraw from the application.
• Permitted default fees: A charge for late rent (interest at 3% above the Bank of England base rate, only after rent is 14 days overdue); a charge for lost keys or security devices (reasonable cost only, with evidence); and a fee for varying, assigning, or novating a tenancy at the tenant's request (capped at £50 or the landlord's reasonable costs, whichever is lower).
• Early termination charge: If the tenant requests an early end to the tenancy, the landlord may charge the landlord's actual financial loss, capped at the rent due for the remaining term.

If you have been charged a prohibited payment, you can:

• Demand repayment: Write to the landlord or agent requesting immediate repayment of the unlawful fee.
• Complain to Trading Standards: Local authority Trading Standards teams enforce the Tenant Fees Act. They can investigate and fine landlords up to £5,000 for a first offence and up to £30,000 for repeat offences within five years.
• Apply to the First-tier Tribunal (Property Chamber): You can apply to the Tribunal for a repayment order. The Tribunal can order the return of any prohibited payment.

Crucially, a landlord or agent cannot serve a valid Section 21 notice while any prohibited payment has been made and not returned. This gives tenants significant leverage to demand repayment. Check whether any fees you were charged could constitute a prohibited payment before accepting the validity of any Section 21 notice.