UK Property Insights · Landlords

Tenant Fees Act 2019: What UK Landlords and Letting Agents Can and Cannot Charge

If you let a home in England, the Tenant Fees Act 2019 limits what you or your letting agent can charge a tenant. It matters most to overseas landlords who rely on an agent, because the agent's fee schedule can put you at risk.

This Banke UK guide explains the principle, the typical payments allowed and the questions to ask your agent. Check current rules on GOV.UK because the lettings rules are changing.

The Short Answer

The Act bans most payments that tenants used to pay, such as charges for referencing, an inventory or check-out. For assured shorthold tenancies in England, landlords and agents may only charge what the Act permits. Typical permitted payments include rent, a refundable tenancy deposit, a refundable holding deposit, and charges for specific events such as a lost key or a requested change to the tenancy, subject to the Act's conditions. Amounts and conditions are set out in the law, so check them before you write them into an agreement.

What Is Generally Not Allowed

Administration, referencing or credit check fees charged to the tenant.
Inventory or check-in and check-out fees charged to the tenant.
Charges for renewing a tenancy, other than those the Act allows.
Requiring the tenant to use a particular service or product as a condition of the tenancy.

What Is Generally Allowed

The rent itself.
A refundable tenancy deposit, which must be protected in a government-approved scheme.
A refundable holding deposit to reserve the property, within the limits and time rules in the Act.
Default charges, such as for a lost key, where the Act permits and the amount is reasonable.
Payments for utilities, council tax, broadband or a TV licence where the tenancy provides for them.

The rules on caps and the time allowed to return holding deposits are specific. Look up the current figures on GOV.UK rather than relying on memory or on an agent's summary.

Why Landlords Should Care

Charging a prohibited payment can lead to enforcement action and penalties, and can interfere with your ability to use certain possession routes. If your agent collects a prohibited fee, you could share the consequences. Ask for the agent's fee schedule and check it against the Act.

Questions to Ask Your Agent

Which fees do you charge the tenant, and on what legal basis?
Which fees do you charge me, and are they shown clearly?
Are you a member of a client money protection scheme and a redress scheme, as the law requires for letting agents?
How are holding deposits and tenancy deposits handled and protected?
Who deals with referencing, and who pays for it?

Rules Are Changing

Lettings law in England is going through reform, including changes to tenancy types and to how tenancies end. Our article on the Renters' Rights Act landlord registration covers one part. Check the latest guidance before you set up or renew a tenancy.

Checklist for Overseas Landlords

Obtain your agent's terms of business and tenant fee schedule in writing.
Confirm deposits are protected and the prescribed information is given.
Keep records of every payment taken from the tenant.
Review the tenancy agreement against current law each time you renew.
Take advice from a qualified solicitor or an accredited landlord body when unsure.

How Banke Can Help

If you are considering a UK buy-to-let from abroad, our team can explain the process and the questions to ask. Contact Banke UK to start the conversation.

This is general information, not legal, tax or financial advice. Rules, fees and procedures change, and we have not quoted figures that depend on them. Please confirm current details with GOV.UK, your local council or a qualified solicitor before you commit money.