Since 2019, legislation is in place banning landlords and agents from charging tenants, and prospective tenants, certain fees. It is designed to restrict the kinds of payments that landlords and letting agents can charge to tenants in connection with the letting of a property. Think of things like credit checks, reference checks, cleaning services, inventory checks, admin fees or check-out fees.
The law also sets out strict regulations for the treatment of holding deposits and cleaning costs.
The following is an exempted list (ie the fees that are permitted):
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rent
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utilities and council tax – if this is included within the tenancy agreement
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a refundable tenancy deposit – capped at no more than 5 weeks’ rent where the annual rent is less than £50,000 or six weeks’ rent where the total annual rent is £50,000 or above
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a refundable holding deposit to reserve the property – capped at one week’s rent
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changes to the tenancy requested by the tenant – capped at £50 or reasonable costs incurred if higher
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early termination of the tenancy requested by the tenant
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defaults by the tenant – such as fines for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement
Any other fees that are not on this permitted list are banned.
For more information, read Tenant fees.