Can Someone Explain The Tenant Fees Ban In Layman’s Terms?

Renting a home in the UK used to come with a barrage of extra costs—from administrative charges to reference check fees. But in 2019, major changes were introduced to protect tenants from these hidden expenses. The Tenant Fees Act 2019 is a landmark piece of legislation designed to make renting fairer, simpler, and more transparent for people in England and Wales.

What Is the Tenant Fees Act?

The Tenant Fees Act came into effect on 1 June 2019 in England and 1 September 2019 in Wales, with the goal of banning most fees previously charged to tenants by letting agents and landlords. Prior to the Act, renters could face hundreds of pounds in charges just to secure a rental property, often without clarity on what the fees covered.

This new law outlawed those extra charges, making it illegal for landlords or letting agents to require payment for anything other than a set list of permitted costs. It applies to nearly all private renters, including those with Assured Shorthold Tenancies (ASTs), most student lets, and licences to occupy.

What Can Landlords Still Charge?

While the Act bans a wide range of fees, it doesn’t mean renting is entirely fee-free. The law allows landlords and agents to charge tenants for a limited number of “permitted payments.” These include:

• Rent, as agreed in the tenancy.
• Security deposits, which are capped at five weeks' rent if the total annual rent is under £50,000, or six weeks if it exceeds that amount.
• Holding deposits, which allow you to reserve a property and are limited to one week's rent.
• Payments for default, such as replacing lost keys or paying rent late (capped at 3% above the Bank of England base rate after 14 days).
• Fees for tenancy changes, like altering the agreement or ending it early (as long as the fee reflects the actual cost).
• Payments for bills, including Council Tax, utilities, TV licence, internet, and phone services.

Any fee that falls outside this list is considered a prohibited payment.

What’s No Longer Allowed?

Under the Tenant Fees Act, tenants can no longer be charged for services that were once standard practice in many lettings. These banned fees include:

• Administration or setup fees
• Reference or credit checks
• Inventory checks at move-in or move-out
• Tenancy renewal charges
• Cleaning fees (unless you’ve caused damage or left the property in poor condition)
• Fees for viewing a property

The only exceptions are if the landlord can prove the cost is a result of the tenant's breach of contract—like damage to the property—or if the tenant requests a change that incurs a legitimate cost.

What If You’ve Been Charged an Unlawful Fee?

If you believe you've been charged a prohibited fee, you have a legal right to challenge it. Start by checking your tenancy agreement and any invoices you’ve received. If you’re unsure whether a fee is allowed, you can reach out to Trading Standards, your local council, or a tenant advice service for guidance.

Landlords or letting agents who break the rules may be required to repay the fees and could face fines of up to £5,000 for a first offence. Repeat offenders can face civil penalties of up to £30,000 or even criminal prosecution.

Why This Law Matters

The introduction of the Tenant Fees Act marked a major win for renters. It was estimated that in its first year, the law saved tenants across England and Wales around £240 million. The Act not only reduced the upfront costs of renting but also brought greater fairness and transparency to the private rental market.

By limiting the types of payments landlords can demand, the law empowers tenants to better understand their rights and reduces the risk of exploitation—especially during vulnerable moments like moving house.

Final Thoughts

The Tenant Fees Act 2019 is a crucial safeguard for renters, ensuring that what you pay to secure and live in a home is clear and fair. If you're entering into a new tenancy or currently renting in England or Wales, it's important to understand your rights under this law.

If you’re ever unsure about a fee you're being asked to pay, don’t hesitate to question it. The law is on your side—and help is available if you need it.