The Tenant Fees Act 2019 has fundamentally altered the landscape of residential lettings in England, introducing stringent controls on the fees landlords and letting agents may charge tenants. Updated by the Renters’ Rights Act in May 2026, the legislation now encompasses all forms of Assured Periodic Tenancies, reflecting the evolving rental market.

Overview of the Tenant Fees Act 2019

Originally enacted on 1 June 2019, the Tenant Fees Act was designed to eliminate unfair upfront charges that tenants frequently encountered, such as fees for viewings, referencing, and contract renewals. The 2026 reforms, brought about by the Renters’ Rights Act, abolished traditional Assured Shorthold Tenancies and replaced them with rolling Assured Periodic Tenancies. This change extended the Act’s protections to these new tenancy types and introduced a cap on rent in advance, limiting it to one month’s rent before the tenancy begins.

Banned Tenant Fees

The Act prohibits landlords and letting agents from charging tenants a variety of fees that were once commonplace. These include administration fees for contract preparation, viewing fees, referencing fees, renewal fees, and charges for third-party services such as inventories or cleaning, unless these are part of permitted payments like genuine damage repairs. Notably, since May 2026, requesting rent in advance exceeding one month is also banned, and accepting rent before the tenancy agreement is signed is illegal.

Non-compliance carries significant risks, including financial penalties and restrictions on possession proceedings. Landlords are advised to ensure all charges comply strictly with the legislation to avoid these consequences.

Permitted Payments Under the Act

Despite the broad ban on fees, the Act allows certain payments. Tenancy deposits remain permitted but are capped at five weeks’ rent for properties with an annual rent below £50,000, and six weeks’ rent for higher-value properties. Holding deposits can be taken to reserve a property but must not exceed one week’s rent and are subject to strict refund rules.

Early termination fees are allowed to cover the landlord’s financial losses if a tenant leaves without giving the required two months’ notice. Additionally, landlords can charge for specific breaches or requests, such as late rent interest (up to 3% above the Bank of England base rate after two weeks overdue), replacement of lost keys or security devices at reasonable cost, and administration fees up to £50 for changes to the tenancy agreement requested by tenants, provided these costs are justified.

Optional fees, such as professional cleaning charges, remain legal only if tenants have the choice to carry out the task themselves or pay for the service.

Charging Bills as Part of Rent

Landlords may include bills such as council tax, utilities, television licences, and broadband within the rent, provided this is clearly stated in the tenancy agreement. The charges must reflect actual costs and comply with Ofgem’s resale rules to avoid being classified as prohibited payments. The 2026 regulations require explicit detail on how bills are apportioned and whether they form part of the rent or are additional charges.

Penalties for Non-Compliance

Charging banned fees is a civil offence punishable by fines up to £5,000 for a first offence. Repeat offences within five years escalate to criminal offences with unlimited fines or civil penalties up to £30,000. Importantly, landlords who have outstanding prohibited payments cannot use mandatory possession grounds under Section 8 to regain their property, following the abolition of Section 21 evictions in May 2026. Enforcement is actively pursued by Trading Standards authorities, emphasising the importance of adherence.

Transitional Arrangements for Existing Tenancies

The one-month rent in advance cap applies only to tenancies commencing on or after 1 May 2026. For tenancies signed before this date, including those continuing on a rolling basis, landlords may continue to collect rent in advance as specified in the original agreement until that tenancy ends.

Frequently Asked Questions

Landlords cannot charge pet fees, higher deposits for pets, or guarantor fees, as these remain prohibited. Holding deposits must be refunded within seven days if the tenancy does not proceed, and landlords must provide written reasons within 15 days if retaining the deposit due to tenant misrepresentation, or face fines up to £5,000.

Some tenancy types, such as long leases over 21 years, holiday lets, and social housing, are exempt from the Act. However, the vast majority of private tenancies now fall under its scope due to recent legislative changes.

If a tenant disputes a fee, landlords should verify compliance with the Act and refund any unlawful charges promptly. Tenants may escalate disputes to the First-tier Tribunal, which can impact the landlord’s standing on the forthcoming National Landlord Database. Maintaining detailed records and receipts for permitted charges is essential for resolving such disputes.

What this means for landlords

Landlords must carefully review all fees charged to tenants to ensure compliance with the Tenant Fees Act and the Renters’ Rights Act. The abolition of fixed-term tenancies and the introduction of rolling periodic agreements require adjustments in tenancy management and fee structures. Failure to comply risks substantial fines and legal obstacles to regaining possession of properties.

Utilising compliant tenancy services can help landlords navigate these regulations efficiently, reducing administrative burdens and safeguarding against inadvertent breaches.

Source: Based on reporting from OpenRent

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

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TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/