The Tenant Fees Act 2019 was a game-changer for the private rented sector in England. It banned most upfront fees, capped deposits, and gave tenants more power to challenge unfair charges.
This Act is one of the most enforced pieces of housing law today — with councils issuing thousands of fines since it came into force.
What the Act says
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Permitted payments only: Landlords and agents can only charge tenants for specific items.
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Deposit cap: Security deposits are capped at 5 weeks’ rent (for annual rents under £50,000) or 6 weeks’ rent (above £50,000).
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Holding deposit cap: Limited to 1 week’s rent.
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Refund rules: Holding deposits must be returned within strict timeframes unless a tenant withdraws or misleads.
Permitted payments
Landlords can only charge for:
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Rent.
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Refundable tenancy deposit (within the cap).
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Refundable holding deposit (1 week’s rent).
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Default fees (limited to lost keys/security devices or late rent interest at 3% above base rate).
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Variation, assignment, or novation fees (capped at £50 unless higher costs are reasonable).
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Early termination (reasonable costs only).
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Utilities, TV licence, and council tax (if the tenancy agreement requires payment).
Everything else — admin fees, reference checks, check-in/out costs — is banned.
Enforcement risks
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Fines: Up to £5,000 for a first offence; unlimited fines or banning orders for repeat breaches.
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Rent repayment: Tenants can claim back prohibited fees.
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Reputation: Councils often publish lists of offenders online.
Common mistakes landlords make
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Charging tenants for referencing.
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Overcharging for key replacement.
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Failing to refund holding deposits promptly when required.
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Not adjusting deposit amounts for rent changes.
Compliance checklist
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Review your tenancy agreements and remove prohibited charges.
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Publish a clear fees schedule on all adverts and websites.
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Train staff (if using agents).
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Keep holding deposit records to show compliance.
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Adjust deposits if rent changes push the cap up or down.
Key takeaway
The Tenant Fees Act 2019 is a zero-tolerance law — there’s no room for “good faith” mistakes. Landlords must know what they can charge and stick to it rigidly.
Disclaimer: NetRent does not provide legal advice. These articles represent our understanding of rental property law.
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