The Tenant Fees Act 2019 is a landmark law introduced to regulate the private rental sector in England. It came into force on 1 June 2019 and applies to most residential tenancies, including assured shorthold tenancies, student lets, and licences to occupy. The Act was designed to protect tenants from excessive and often hidden charges imposed by landlords and letting agents.
Before the Act, tenants could be charged for a wide range of services—from referencing and credit checks to inventory reports and cleaning fees. These costs often made renting unaffordable for many, especially those on lower incomes. The Tenant Fees Act sought to address this imbalance by banning most fees and capping others.
Please click here to find out more about our residential property services.
Free Initial Telephone Discussion
For a free initial discussion with a member of our new enquiries team, get in touch with us today. We are experienced in dealing with all aspects of residential property law and once instructed we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Who Does the Act Apply To?
The Act applies to:
- Tenants renting under assured shorthold tenancies
- Licensees occupying property under a licence agreement
- Landlords letting residential property in England
- Letting agents acting on behalf of landlords
It does not apply to commercial leases or long leases (over 21 years), nor does it cover social housing tenancies.
What Fees Are Banned?
Under the Tenant Fees Act, landlords and letting agents are prohibited from charging tenants for anything other than a limited list of permitted payments. The following fees are banned:
- Charges for viewing a property
- Fees for tenancy set-up or administration
- Costs for referencing or credit checks
- Inventory fees
- Check-in and check-out fees
- Professional cleaning charges (unless the tenant has caused damage)
- Fees for renewing a tenancy
Any attempt to charge these fees is unlawful and can result in enforcement action.
What Payments Are Permitted?
The Act allows only a small number of payments to be requested from tenants. These include:
- Rent
This must be agreed in advance and clearly stated in the tenancy agreement. Landlords cannot artificially inflate the first month’s rent to offset banned fees.
- Tenancy Deposit
This is capped at five weeks’ rent for properties with an annual rent under £50,000, and six weeks’ rent for those above that threshold.
- Holding Deposit
A holding deposit can be taken to reserve a property, but it must not exceed one week’s rent. The rules around holding deposits are strict—landlords must refund it unless the tenant withdraws or provides false information.
- Default Fees
These are limited to charges for late payment of rent or lost keys. Any default fee must be reasonable and clearly stated in the tenancy agreement.
- Early Termination Fees
If a tenant requests to end the tenancy early, the landlord may charge a fee to cover reasonable costs. However, this must not exceed the actual loss incurred.
- Utilities and Council Tax
If the tenancy agreement includes provision for the tenant to pay for utilities, broadband, TV licence, or council tax, these payments are permitted.
Enforcement and Penalties
Local authorities are responsible for enforcing the Tenant Fees Act. They have the power to:
- Issue civil penalties of up to £5,000 for a first offence
- Impose fines of up to £30,000 or pursue criminal prosecution for repeat offences
- Order landlords or agents to repay prohibited fees to tenants
Letting agents found in breach may also be banned from operating under the Redress Scheme or face restrictions under the Client Money Protection Scheme.
Tenants can report breaches to their local council or seek legal advice. At Blackstone Solicitors, we assist both tenants and landlords in understanding their rights and obligations under the Act.
Legal Implications for Tenants
For tenants, the Act offers greater protection and transparency. Key implications include:
- Reduced upfront costs: Tenants no longer face unexpected charges when renting a property.
- Clearer contracts: Tenancy agreements must specify permitted payments and avoid hidden fees.
- Right to challenge: Tenants can dispute unlawful charges and seek refunds through enforcement bodies or legal channels.
However, tenants must still meet their obligations under the tenancy agreement, including paying rent and maintaining the property.
Legal Implications for Landlords and Letting Agents
Landlords and agents must ensure full compliance with the Act. Legal implications include:
- Contract review: Existing tenancy agreements may need to be updated to remove prohibited fees.
- Operational changes: Letting agents must revise their fee structures and marketing practices.
- Risk of penalties: Non-compliance can lead to fines, reputational damage, and legal action.
It’s essential to seek legal advice when drafting tenancy agreements or managing rental portfolios. At Blackstone Solicitors, we help landlords and agents stay compliant and avoid costly mistakes.
Common Misunderstandings
Despite being in force for several years, the Tenant Fees Act still causes confusion. Common misunderstandings include:
- Believing cleaning fees are always permitted – they’re not unless damage has occurred.
- Assuming the Act doesn’t apply to student lets – it does.
- Charging tenants for tenancy renewals – this is prohibited.
Clear legal guidance can help avoid these pitfalls and ensure smooth tenancy management.
How Blackstone Solicitors Can Help
At Blackstone Solicitors, we offer expert legal advice on all aspects of residential lettings. Our services include:
- Reviewing and drafting compliant tenancy agreements
- Advising landlords and agents on permitted payments
- Supporting tenants in disputes over unlawful fees
- Representing clients in enforcement proceedings
We serve clients across England and Wales, providing clear, practical guidance tailored to your needs.
Final Thoughts
The Tenant Fees Act 2019 has reshaped the private rental sector in England. By banning most fees and capping others, it aims to make renting fairer and more transparent. For tenants, it offers protection from hidden costs. For landlords and agents, it demands careful compliance and clear communication.
If you’re involved in residential lettings and want to ensure you’re meeting your legal obligations, contact Blackstone Solicitors today. We’ll help you navigate the complexities of the Act and protect your interests with confidence.
How we can help
We have a proven track-record of helping clients deal with residential property matters. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
Deciding when (or whether) to incorporate, what kind of ownership
How to Contact Our Residential Property Solicitors
It is important for you to be well informed about the issues and possible implications of residential property. However, expert legal support is crucial in terms of ensuring a positive outcome to your purchase.
To speak to a member of our New Enquiries Team today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
Comments are closed.
