Tenant Fees (Tenant Fees Act 2019)

Under the Tenant Fees Act 2019, landlords and letting agents may only charge tenants permitted payments. Below is a breakdown of all allowable fees for tenants.

Holding Deposit – 1 Week’s Rent

A refundable holding deposit, capped at one week’s rent, is payable to reserve a property. This will be deducted from your first month’s rent or refunded if you proceed. It may be retained in certain circumstances, such as if you withdraw from the tenancy, provide false or misleading information, or fail Right to Rent checks.

Security Deposit – 5 or 6 Weeks’ Rent

A refundable tenancy deposit is required and will be protected in a government-approved deposit scheme. The maximum deposit is 5 weeks’ rent where the annual rent is below £50,000, or 6 weeks’ rent where the annual rent is £50,000 or above.

Default Fees

Default fees may only be charged in specific situations permitted by law. These include late payment of rent and replacement of lost keys or security devices.

For late payment of rent, interest may be charged at 3% above the Bank of England base rate on rent that is more than 14 days overdue, for each day the payment is outstanding.

For lost keys or security devices, tenants are liable for the actual cost of replacement, including any reasonable costs incurred by the agent or landlord.

Variation, Amendment or Novation of Tenancy – £50

Where a tenant requests a change to the tenancy agreement, a fee of £50 (including VAT) may be charged. Where the reasonable costs of making the change are higher than £50, a higher fee may be charged, but evidence of these costs will be provided.

Early Termination (At Tenant’s Request)

If a tenant requests to leave the tenancy before the end of the fixed term, they may be required to pay the landlord’s reasonable costs. These costs will not exceed the financial loss suffered by the landlord and the reasonable costs incurred in arranging a new tenancy.

Other Permitted Payments

Tenants may also be responsible for payments for utilities (such as gas, electricity, water), communication services (such as broadband and telephone), TV licence and council tax, where applicable.

Additional payments may be required for the replacement of lost keys or security devices, charged at cost, and for any other payments expressly permitted under the Tenant Fees Act 2019.

Non-Permitted Fees

Letting agents and landlords cannot charge tenants fees for viewing a property, administration, inventories, referencing or credit checks, tenancy renewals, or check-out, or any other fee not expressly permitted by the Tenant Fees Act 2019.

All charges must comply fully with the Tenant Fees Act 2019.