Tenant fees

What are tenant fees?

Tenant fees are payments made to a landlord or letting agent in connection with a tenancy. In England, under the Tenant Fees Act 2019 and the Renters’ Rights Act 2025, most tenant fees are banned. Similarly, in Wales, most tenant fees are banned under the Renting Homes (Fees etc) Wales Act 2019.

This means tenants can't be charged for things like references, administration, or viewing a property. If a fee isn't on the 'permitted' list, it's a prohibited payment, and the landlord must return it.

Note that Welsh and English laws are slightly different on the topic of tenants' fees.

What are lawful fees and permitted payments?

The general position is that if a fee is not specifically allowed, it is banned. Landlords and letting agents must not require tenants (including prospective tenants and guarantors for tenants) to make any prohibited payments.

The following fees are the fees that are permitted:

• rent (in England, landlords cannot ask for or accept more than one month's rent in advance)

• utilities, TV licence, communications services (ie internet, broadband, and telephone), and council tax charges, provided the fees don’t exceed the reasonable costs incurred by the landlord for these utilities

• a refundable tenancy deposit - in England, this is capped at no more than five 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). In Wales, there is no cap

• a refundable holding deposit to reserve the property - capped at one week’s rent

• fees for changes to the tenancy that were requested by the tenant (ie for the variation, assignment, or surrender of the tenancy) - capped at £50 or reasonable costs incurred if higher (England only) payments where the tenant ends the tenancy without giving the correct amount of notice - this cannot be more than the amount of rent due until the minimum notice period ends

• fees for defaults by the tenant - such as fines for late payment of rent or replacement of a lost key/security device, where required under a Tenancy agreement  

• payments of service charges to ‘community landlords’, such as local authorities, in certain situations (Wales only) 

• payment for support services in certain situations (Wales only) 

Concerning default charges for rent arrears, in England, the rent must be 14 days overdue, and in Wales, it must be seven days overdue.

What fees are prohibited?

If a fee is not permitted, it is prohibited. The following are examples of fees which, in England and Wales, are prohibited for landlords to charge:

• advanced rental payments of more than one month’s rent (England only)

• fees for signing a tenancy agreement

• fees associated with renewing a tenancy agreement

• fees for requesting a checklist regarding the property (ie an Inventory fee)

• fees for accompanied property viewings

• fees for providing a reference

• check-in and check-out fees (ie for moving in and moving out)

• administration fees 

• inspection fees upon moving out

• mandatory professional cleaning fees at the end of a tenancy

These fees will still be prohibited if a landlord asks a tenant to pay fees through a third party. However, a tenant might themselves choose to employ and pay a third party for, for example, an inventory service, in which case the tenant would need to pay.

It should be noted that rental bidding practices will no longer be permitted, as landlords will be required to specify the proposed rent, which shall constitute the maximum amount a tenant may pay. Accordingly, landlords will be prohibited from encouraging or accepting any offers exceeding the proposed rent.

Application of the tenants’ fees restrictions

In England

The tenant fees restrictions apply to all private residential tenancies in England, regardless of when they were entered into. The Renters' Rights Act 2025 has moved most tenancies to a periodic system, but the fee protections remain universal. This includes:

• existing tenancies (including those entered into before 1 June 2019)

• new assured periodic tenancies

• licences to occupy housing in the private rented sector (for example, under a Lodger agreement)

• student lets

Any term in an already-existing private residential tenancy agreement requiring the payment of a prohibited fee will not be binding on a relevant person (ie the tenant, licensee, guarantor, or any other person acting on behalf of the tenant/licensee).

In Wales

Restrictions have been in place in Wales since 1 September 2019.

In Wales, the restrictions apply to standard occupation contracts. Additionally, everyone who is asked to pay a prohibited payment in Wales is protected. This is because the law simply bans demanding a prohibited payment.

In Wales, the tenants’ fees ban is not retrospective. Therefore, if a tenancy started or was signed before 1 September 2019, the tenant will have to continue paying relevant fees. 

What actions can tenants take?

In England, where a breach has occurred and a banned fee or payment is taken, tenants can reclaim any money they wrongly paid via the county court. Local Trading Standards Offices can also assist tenants with this.

In Wales, claims are also made to the county court. However, the main enforcement authorities are the Local Housing Authority and the licensing authority for the area. 

You can find more information about tenant fees in Wales on the Welsh government’s website. 

What happens if a landlord takes a prohibited payment?

If a landlord or agent takes a prohibited payment, the consequences are severe. 

Under the Renters' Rights Act 2025 in England, local authorities have powers to investigate and punish breaches. A landlord who hasn't returned a prohibited fee or an overpaid deposit is legally barred from seeking possession of their property. This means they cannot evict a tenant (even if they have valid grounds, such as wanting to sell or move in) until the unlawful money has been fully repaid. 

In Wales, a similar 'bar to possession' exists, preventing landlords from using no-fault notice grounds until prohibited fees are returned.

Financial penalties and enforcement

In England, local housing authorities can issue civil penalties of up to £7,000 for a first or minor breach. For serious or repeated offences, these fines can rise to £40,000. Tenants also have a direct route to redress; they can apply for a Rent Repayment Order (RRO) to reclaim up to two years' worth of rent if the landlord has committed certain offences, including charging prohibited fees. 

In Wales, local authorities can issue a £1,000 fixed penalty notice to discharge liability, or they may choose to prosecute, which can lead to unlimited fines and the loss of a landlord's licence through Rent Smart Wales.

If you have any questions or concern do not hesitate to Ask a lawyer.