What Is the Tenant Fees Act and Which Charges Are Illegal?

Tenant Fees Act rules stop most extra charges when you rent a home in England. In simple terms, landlords and agents cannot invent fees and add them to your bill. Rent, deposits, and a few set charges are still allowed. There are also firm limits on deposits and late payment charges. Since May 2026, new rules have also limited rent in advance. This guide explains what you can be charged for and what you can challenge.

What Does the Tenant Fees Act Do?

The law changed how tenants are charged in England. A landlord or agent can only ask for payments allowed by law. Most extra letting fees are banned.

Under the Tenant Fees Act, a charge is normally not allowed unless it falls within an approved type. These allowed charges are known as permitted payments.

This makes the basic rule easy to remember. If a fee is not clearly allowed, check it before paying.

What Can a Landlord Still Charge You?

The law does not ban every payment. Landlords can still ask for rent and certain other costs.

These can include:

• Your normal rent
• A refundable tenancy deposit
• A refundable holding deposit
• Some costs for a change you request
• Reasonable costs for ending a tenancy early
• Costs for lost keys or security devices
• Interest when rent is at least 14 days late
• Bills you must pay under the tenancy

A fee for changing the tenancy is usually capped at £50. A higher amount needs to reflect reasonable extra costs.

Which Charges Are Illegal?

Many common letting charges are now illegal tenant fees.

A landlord or agent should not normally charge you for:

• Setting up the tenancy
• References
• Credit checks
• Check-in services
• Inventory work
• Routine administration
• Mandatory insurance products
• A deposit above the legal limit

These are examples of prohibited payments when they do not fall within a legal exception. A landlord also cannot make you buy an unwanted service just to secure the home.

The Tenant Fees Act also caps what can be taken as a deposit. This stops a landlord from avoiding the fee ban by asking for an unusually large deposit.

How Much Tenancy Deposit Can You Be Asked For?

The tenancy deposit cap depends on the yearly rent.

If annual rent is below £50,000, the limit is five weeks’ rent. If it is £50,000 or more, the limit is six weeks’ rent.

A tenancy deposit and a holding deposit are not the same. The tenancy deposit is held during your tenancy. It must normally be protected in an approved scheme.

How Do Holding Deposits Work?

The holding deposit rules are quite strict. A landlord or agent cannot normally ask for more than one week’s rent. The payment is used to reserve the property while the tenancy is being agreed.

It will often be returned or put towards another payment when the tenancy starts. There are some cases where it can be kept. For example, this may happen if the applicant pulls out or gives important false details.

Can a Landlord Ask for Rent in Advance?

The rules on rent in advance changed on 1 May 2026.

Before the tenancy agreement is signed, a landlord cannot ask for, encourage, or accept rent upfront. Once the agreement is signed, the tenant can normally be asked for up to one month’s rent before moving in.

After that, rent should follow the payment dates in the tenancy. A landlord cannot simply require several future months to be paid early.

This is an important change. Older renting guides may still show the previous rules.

Conditions for Late Rent or Lost Keys?

There are narrow rules for late rent fees. Rent must be at least 14 days overdue before interest can be charged. The rate cannot be more than 3% above the Bank of England base rate.

Lost keys are treated differently. A landlord or agent can ask for the reasonable cost of replacing them. They should be able to show what the replacement actually cost.

These rules do not give landlords a free choice to set penalty fees.

What Can You Do About an Illegal Charge?

Do not ignore a fee that looks wrong. First, ask what rule allows the charge.

Keep useful evidence, such as:

• Emails
• Messages
• Receipts
• The tenancy agreement
• Bank records
• Details of the fee

Ask for the money back if you paid a banned charge. You can also raise the matter with the local council. Government guidance says councils can enforce the fee rules and take action over breaches.

What Should Tenants and Landlords Remember?

The Tenant Fees Act keeps renting costs more controlled in England. Most extra letting charges cannot simply be passed to the tenant. Deposits, holding payments, and default charges all have clear limits. The May 2026 rules also restrict how much rent can be demanded upfront. Tenants should question any charge that does not fit an allowed category. Landlords and agents should check the current rules before asking for payment.

FAQs

1. According to the Tenant Fees Act, which fees are illegal?

Most admin, reference, credit-check, and check-in charges are banned. Landlords can only ask for payments allowed by law. Always check an unusual fee before paying it.

2. Can a landlord ask for an administration fee in the UK?

A normal tenancy administration fee is usually not allowed. The landlord cannot simply add a setup fee to the tenancy. Some specific legal charges can still apply.

3. Can a letting agent charge a tenant for referencing?

Letting agents cannot normally make tenants pay a reference fee. The cost of standard tenant checks should not be passed on as a separate charge. Ask the agent to explain any fee linked to referencing.

4. How much of a tenancy deposit can a landlord ask for in England?

The usual limit is five weeks’ rent when annual rent is below £50,000. It rises to six weeks when annual rent is £50,000 or more. A landlord should not ask for more than the legal limit.

5. How much of a holding deposit can a landlord charge?

A holding deposit is capped at one week’s rent. It is used to reserve the home before the tenancy begins. Different rules decide when it must be returned.

6. Can a landlord charge for changing a tenancy agreement?

A charge may apply when the tenant asks for a change. It is normally limited to £50. More can be charged if reasonable higher costs can be shown.

7. Can a landlord charge interest on late rent?

Yes, but only after the rent is at least 14 days late. The rate is capped at 3% above the Bank of England base rate. Interest applies to the overdue amount.

8. Can a landlord charge tenants for lost keys?

Yes, reasonable replacement costs can be charged. The amount should match the real cost of replacing the key or device. The landlord or agent should provide evidence of that cost.

9. Can a landlord ask for several months of rent upfront?

For most relevant private tenancies, the rules changed on 1 May 2026. A landlord cannot demand several months upfront before the tenancy starts. After signing, they can normally ask for up to one month’s rent before move-in.

10. What should I do if my landlord charges an illegal fee?

Ask the landlord or agent why the charge is allowed. Keep proof of the payment and ask for a refund if needed. You can also report possible breaches to your local council.