What is Tenant Fees Act 2019?

Full Definition

The Tenant Fees Act 2019 bans landlords and letting agents in England from charging tenants most fees in connection with a new or renewed tenancy, replacing a previously unregulated market in which agents routinely charged for referencing, inventory checks, tenancy renewals, and administration. Since the ban took effect on 1 June 2019 (extended to all existing tenancies from 1 June 2020), the only payments a landlord or agent can lawfully require from a tenant are rent, a capped refundable tenancy deposit, a capped refundable holding deposit, and a narrow list of default fees -- for example, a reasonable charge for a lost key or fob, interest on late-paid rent above 14 days' arrears, or a payment for varying the tenancy at the tenant's request, each of which must be evidenced with receipts or invoices. The Act caps the holding deposit -- taken to reserve a property while referencing is completed -- at no more than one week's rent, and caps the tenancy deposit itself at five weeks' rent for tenancies where the total annual rent is below £50,000, rising to six weeks' rent above that threshold; a landlord or agent who charges above these caps is not only breaching the Act but risks being unable to serve a valid Section 21 notice until the excess is repaid. Any fee not on the permitted list -- including charges historically common before the ban, such as tenancy set-up fees, check-out fees, professional cleaning fees written into the tenancy as a mandatory charge, gardening fees, or renewal fees -- is a "prohibited payment" and unenforceable, with the tenant entitled to reclaim it and the landlord or agent liable to a civil penalty of up to £5,000 for a first breach, rising to a criminal offence and unlimited fine for repeat breaches within five years. Worked example: a tenant renting a flat at £1,000 a month can be asked for a holding deposit capped at £230 (one week's rent) and, once the tenancy proceeds, a security deposit capped at £1,153 (five weeks' rent), but cannot lawfully be charged a separate £150 "referencing fee" or a £120 "check-out fee" on top -- any agent invoicing such charges is demanding a prohibited payment that the tenant can report to their local council's trading standards team and refuse to pay.

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