Under the Tenant Fees Act 2019, a landlord or letting agent in England can ask a tenant only for the payments the Act lists, and every other payment is prohibited. The list covers rent, a capped deposit and holding deposit, and payments for events such as late rent, a lost key or a requested change. Since 1 May 2026 rent on an assured tenancy cannot be taken before the agreement is signed. A first breach can bring a civil penalty of up to £5,000.
The short version
- A deposit is capped at five weeks' rent, or six at £50,000 a year or more. A holding deposit is capped at one week's rent, the annual rent divided by 52.
- Charges for referencing, admin, renewals, check-out and inventory are prohibited.
- Since 1 May 2026 only initial rent, after signing, can be taken on an assured tenancy.
- A holding deposit must be repaid or reasons given within 7 days of the deadline. Penalties run to £5,000, or £30,000 for a repeat.
What can a landlord or agent charge a tenant?
Any payment is prohibited unless Schedule 1 to the Act lists it. GOV.UK's guidance adds detail.
| Payment | Limit | Condition |
|---|---|---|
| Initial rent | First rent period, plus any later period ending within the first 28 days | After signing only |
| Tenancy deposit | 5 weeks' rent, or 6 at £50,000 a year or more | Protect it in an approved scheme |
| Holding deposit | 1 week's rent | Refundable, see below |
| Late rent | Interest up to 3% a year above Bank Rate on the amount overdue | 14 days late; clause in the agreement |
| Lost key or security device | Reasonable costs | Written evidence; clause in the agreement |
| Change the tenant asks for | The greater of £50 or reasonable costs | Evidence expected above £50 |
| Damages for breach of the agreement | Actual loss | Court or deposit route |
| Tenant ends early | Your loss (the Act), and no more than the missing notice's rent (GOV.UK) | Use the lower; agent: reasonable costs |
| Utilities, communications, council tax, TV licence | As the agreement says | No profit on resale; no separate council tax or TV licence charge |
The initial rent limit is in section 4B of the Housing Act 1988, which makes terms requiring rent in advance of no effect, other than for initial rent, in tenancies entered into from 1 May 2026. GOV.UK says this usually means one month's rent, or 28 days' if rent is not monthly.
How is a late rent charge worked out?
The annual rate applies to each day after the due date that rent stays unpaid. Bank Rate was 3.75% throughout September 2026, so the cap was 6.75% a year. Illustration with invented dates: £1,200 due on 1 September, paid on 30 September, is unpaid for 28 days (2 to 29 September), so £1,200 × 6.75% × 28 ÷ 365 = £6.21 (GOV.UK's example uses a 365-day year). Paid within 14 days, nothing is chargeable. The next Bank Rate decision is on 5 November 2026.
How do holding deposits work?
Before signing you may take a holding deposit and, GOV.UK says, ask for the tenancy deposit. Rent waits until after signing. The cap is one week's rent for the whole tenancy, however many tenants share. You cannot take a second for the same housing unless the first was repaid or lawfully kept.
The deadline for agreement is the fifteenth day counting the day you receive it as day one, unless you agree another day in writing (Schedule 2). Once signed, repay it or, if the tenant agrees, apply it to the first rent or deposit. Illustration: rent of £1,500 a month is £18,000 a year, so the cap is £18,000 ÷ 52 = £346.15.
| Date | What happens |
|---|---|
| Mon 2 Nov 2026 | You receive £346.15. This is day 1. |
| Mon 16 Nov | Day 15, the deadline for agreement. |
| Sun 22 Nov | If nothing was signed, the last of 7 days beginning 16 Nov to repay or give written reasons for keeping it. |
GOV.UK says "15 calendar days after receiving it", which could be read as 17 November. Use the Act's date. The Act also asks for agreement "before" the deadline day, so on our reading treat Sunday 15 November as the last safe day to sign, or agree another date in writing.
You may keep it only where Schedule 2 allows. GOV.UK lists a failed Right to Rent check, a tenant who withdraws or does not respond, and false or misleading information that affects suitability. The Act adds conditions: the immigration ground applies only if you could not reasonably have known earlier, and you cannot keep it for withdrawal or delay if you breached section 1 or 2 or acted unreasonably.
Check-out, inventory, cleaning, renewal and admin fees are not on Schedule 1, so they are prohibited.
Which payments are prohibited?
- Referencing and arranging the tenancy. Section 1 and section 2 cover payments for granting, renewing, continuing, varying or ending a tenancy, and for providing a reference. The statutory guidance says a tenant who paid for a third-party reference may need repaying.
- Insurance, loans and services. GOV.UK says you cannot require contents insurance, a guarantor service, a deposit replacement product or an inventory service. A tenant may choose them, and offering one as an option in place of another requirement that is lawful and reasonable is not a requirement (section 1(7)).
- Higher rent early in the first year. In the statutory guidance's example, £800 then £500 a month makes the extra £300 prohibited.
A clause requiring a prohibited payment does not bind the tenant (section 4).
What changed on 1 May 2026?
S.I. 2026/421 started these reforms for assured tenancies other than social housing. Rent payable before the tenancy is entered into is now a prohibited payment, and landlords and agents must not invite, encourage or accept it (Renters' Rights Act 2025, section 9). On 7 July 2026 GOV.UK added that guarantor agreements made before 1 May 2026 may be affected, so review them. The caps, holding deposit rules, £50 limit and penalty amounts show no change in the text we read.
What are the penalties, and how does a tenant get money back?
| Figure | Set by | Condition |
|---|---|---|
| Up to £5,000 civil penalty | Section 8(2) | Breach of section 1, 2 or 5A or the holding deposit rules, proved beyond reasonable doubt |
| Up to £30,000 civil penalty, or prosecution | Sections 8(3) and 12 | Breach of section 1 or 2 within five years of a final penalty or conviction for a different breach of the same section |
Per the statutory guidance, each requirement for a prohibited payment is a separate breach. GOV.UK calls a conviction fine unlimited, and it is a banning order offence. A repeat holding deposit breach brings a further penalty of up to £5,000. The Act's Schedule 3 says a council must serve a notice of intent within six months of having sufficient evidence and allow 28 days for representations (Schedule 3).
A tenant has three routes (GOV.UK):
- Ask for the money back and keep a record.
- Report the landlord or agent to the council, which can require repayment with interest alongside a penalty. A letting agent's redress scheme is a further route.
- Apply to the First-tier Tribunal (section 15) for an order to pay within 7 to 14 days. It covers the amount paid, and is unavailable once the council has begun a prosecution or ordered repayment.
How do pets and rent increases fit in?
You cannot require pet insurance, and a pet deposit is not on the list. On our reading a mid-tenancy "pet rent" is either an unlisted payment or a rent rise that must follow Form 4A. See pets in rented homes and raising the rent.
What should a landlord or agent check before charging a fee?
- Take no rent before signing; a capped holding deposit is allowed. Record the day received.
- Put default fees in the agreement and keep key invoices.
- Never make insurance, a guarantor service or referencing a condition.
- Diarise the 7 days to repay a holding deposit or give reasons.
- Agents: publish fees in the office, online and on portal adverts, or face a penalty of up to £5,000 (Consumer Rights Act 2015, section 83 sets the duty and section 87 the enforcement).
What does the law leave unclear?
- Section 12 names sections 1 and 2. On our reading, inviting or accepting pre-tenancy rent (section 5A) cannot found the offence by itself, but requiring it is also a section 1 breach.
- A GOV.UK and legislation.gov.uk search on 17 October 2026 found no tenant fees consultation or draft instrument.
If you let in Edmonton or nearby and want a second look at your agreement's fee terms, talk to our lettings team. See also our landlord legislation guide and what tenants can be asked to pay.
Questions readers ask
Can a landlord charge for referencing under the Tenant Fees Act?
No. Referencing is not on the Act's list of permitted payments, so a landlord or letting agent cannot charge the tenant for it, and a clause requiring payment does not bind the tenant. Before signing, a landlord may take a capped holding deposit and, GOV.UK says, ask for the tenancy deposit, but not rent. A council can require repayment of a reference fee, and the tenant can apply to the First-tier Tribunal.
How much can a holding deposit be, and when can a landlord keep it?
The cap is one week's rent for the whole tenancy, worked out as the annual rent divided by 52. A landlord may keep it if the tenant withdraws, does not take reasonable steps to sign, gives false or misleading information that matters to the decision, or is barred by immigration status where the landlord could not reasonably have known earlier. Written reasons are due within 7 days, or it must be repaid. A landlord who breached the rules cannot keep it for withdrawal or delay.
What is the penalty under the Tenant Fees Act?
A council can impose a civil penalty of up to £5,000 for a first breach, and each requirement for a prohibited payment can count as a separate breach. A further breach of section 1 or 2 within five years of a final penalty or conviction for a different breach of the same section is an offence, with a civil penalty of up to £30,000 or prosecution as the options. The tenant can also recover the payment.
Can a landlord charge a fee for late rent?
Only if the tenancy agreement says so. The rent must be at least 14 days late, and the charge cannot be more than interest at 3% a year above the Bank of England base rate on the amount overdue. With Bank Rate at 3.75% on 17 October 2026, that is 6.75% a year. GOV.UK says to apply default fees case by case.
Can a landlord ask for a pet deposit or pet insurance?
The Act's list has no pet deposit, and GOV.UK says requiring a tenant to pay for insurance is a prohibited payment, though a tenant may choose to buy it. Pet damage can be claimed from the ordinary deposit, which stays capped at five weeks' rent, or six weeks' if the annual rent is £50,000 or more.
Sources
- GOV.UK, Fees you can charge as part of a tenancy, published 1 May 2026, updated 7 July 2026, and guidance for tenants, updated 7 July 2026.
- MHCLG, Statutory guidance for enforcement authorities, updated 1 May 2026.
- GOV.UK, Rent in advance and deposits, read on 17 October 2026.
- legislation.gov.uk, Tenant Fees Act 2019, Schedule 1, 2 and 3, and sections 1, 4, 8, 12 and 15, read on 17 October 2026.
- legislation.gov.uk, Housing Act 1988, section 4B, Renters' Rights Act 2025, section 9, S.I. 2026/421 and Consumer Rights Act 2015, sections 83 and 87, read on 17 October 2026.
- Bank of England, Bank Rate, read on 17 October 2026.
