Tenant Fees Act 2019 — What Landlords Can and Cannot Charge in 2026

The Tenant Fees Act 2019 came into force on 1 June 2019 for new tenancies and 1 June 2020 for all existing tenancies. It fundamentally changed what landlords and letting agents can charge tenants in England. Understanding the Act is essential for every landlord — charging a prohibited payment is not merely a technicality but a civil and potentially criminal offence, and it can block possession proceedings.

Permitted payments — what landlords can charge

The Tenant Fees Act 2019 lists the only payments a landlord can require from a tenant or prospective tenant in connection with an assured or short assured tenancy in England:

1. Rent: The rent stated in the tenancy agreement. Landlords cannot require rent to be paid more than one month in advance. Any advance rent payment above one month's rent is a prohibited payment
2. Tenancy deposit: A refundable security deposit capped at 5 weeks' rent (annual rent below £50,000) or 6 weeks' rent (annual rent £50,000 or above). The deposit must be protected in an approved scheme within 30 days
3. Holding deposit: A refundable pre-tenancy reservation payment capped at 1 week's rent. The holding deposit must be dealt with within the required timescales — repaid, applied against first month's rent or deposit, or legitimately retained
4. Default payments: Payments arising from a default by the tenant — but only where the default is specified in the tenancy agreement and the charge is reasonable. The two most common permitted defaults are: late payment interest (maximum 3% above the Bank of England base rate per annum), and a replacement key or security device at the landlord's actual cost
5. Variation, assignment, or novation: Where the tenant requests a variation, assignment, or novation of the tenancy agreement, the landlord may charge up to £50 (inclusive of VAT) for the administrative work, or their reasonable costs if those are demonstrably higher
6. Early termination charge: Where the tenant requests early termination of the tenancy and the landlord agrees, the landlord may charge the landlord's actual financial loss (e.g. re-letting costs, lost rent to the point of re-letting) — but must mitigate losses by actively re-letting

Prohibited payments — what landlords cannot charge

Any payment not in the permitted list above is a prohibited payment. Common examples of prohibited charges that landlords must not take:

• Administration or setup fees: Tenancy setup fees, referencing fees, credit check fees, inventory fees, check-in fees — all prohibited
• Renewal or extension fees: Charging tenants for renewing or extending a tenancy (on a PAT there is no renewal — the tenancy rolls automatically)
• Check-out fees: Any charge to the tenant for an inventory check-out, final inspection, or property condition report
• Professional cleaning fees: Mandatory end-of-tenancy professional cleaning charges (beyond returning the property to the condition at the start, allowing for fair wear and tear)
• Pet fees (other than deposit top-up to the cap): Under the Tenant Fees Act, a landlord cannot charge a separate pet fee or non-refundable pet deposit. The only permitted response to a pet is to take the maximum deposit (5 weeks) where it was previously lower
• Insurance costs: Requiring tenants to take out the landlord's nominated contents insurance or to pay for the landlord's building insurance is prohibited
• Advance rent beyond 1 month: Requiring a tenant to pay more than one month's rent in advance (e.g. 3 or 6 months upfront) is a prohibited payment regardless of the reason
• Interest above 3% above base rate: Late payment interest charged at more than 3% above the Bank of England base rate is prohibited — only the excess above this cap is unlawful

Holding deposit rules in detail

The holding deposit is the most frequently mishandled area of the Act. The maximum holding deposit is one week's rent. Once paid:

• 15-day deadline (or agreed deadline): The landlord must deal with the holding deposit within 15 calendar days of receipt (or a shorter period if agreed in writing). 'Dealing with' means either: starting the tenancy (and applying the holding deposit against the first month's rent or security deposit), or repaying it, or legitimately retaining it
• Repay unless tenant is at fault: The holding deposit must be repaid unless: (a) the tenant provided false or misleading information that would have reasonably affected the landlord's decision to let; (b) the tenant withdrew from the proposed tenancy; or (c) the tenant failed to take reasonable steps to enter into the tenancy before the deadline
• Landlord refusal does not entitle retention: If the landlord decides not to let (for any reason other than the tenant's fault), the holding deposit must be repaid in full. A landlord who retains a holding deposit after deciding not to let has taken a prohibited payment
• Cannot take two holding deposits simultaneously: A landlord cannot hold holding deposits from two competing applicants for the same property at the same time. If one is taken, any second must be repaid immediately if the first application proceeds

Consequences of taking a prohibited payment

• Civil penalty — first breach: Up to £5,000 per prohibited payment, enforced by the local housing authority
• Criminal offence — second breach within 5 years: Unlimited fine on conviction
• Banning order risk: Repeat offenders may be made subject to a banning order preventing them from letting property in England
• Section 8 notice block: A landlord who has taken a prohibited payment and not repaid it cannot correctly serve a Section 8 notice on certain grounds (including Ground 1A — sale) until the payment is returned. This can directly delay possession proceedings

The Tenant Fees Act and PATs from May 2026

The Tenant Fees Act 2019 continues to apply in full to Periodic Assured Tenancies from 1 May 2026. The transition from fixed-term ASTs to PATs does not change any of the permitted or prohibited payments. However, the PAT framework removes some contexts in which prohibited payments formerly arose — there is no renewal of a PAT (it rolls automatically), and there is no check-out at the end of a fixed term (the PAT ends only when the tenant gives notice or the landlord obtains a possession order). Landlords must ensure their standard fee schedules and tenancy paperwork are updated to remove any legacy fees that were already prohibited under the 2019 Act.

Practical checklist — Tenant Fees Act compliance

• Remove all administration, referencing, setup, check-in, check-out, and renewal fees from your tenancy paperwork
• Cap holding deposits at 1 week's rent and deal with them within 15 days
• Cap security deposits at 5 weeks' rent (annual rent below £50,000)
• Do not require more than 1 month's rent in advance
• Do not charge for default events not specified in the tenancy agreement
• Cap late payment interest at 3% above Bank of England base rate
• Do not charge mandatory end-of-tenancy cleaning fees — only deduct from deposit for damage beyond fair wear and tear
• If a tenant requests a pet, do not charge a pet fee — you may increase the deposit to the 5-week cap if it was below that level
• If you use a letting agent, confirm their fee schedule complies — landlords remain liable for agent-charged prohibited fees