Tuesday, July 8, 2025
The Tenant Fees Act has been with us for some time now, so here are examples of the most common questions.
While the information below is correct when published, there may be future changes.
First, just a reminder that the act applies to:
The Tenant Fees Act lists 11 types of permitted payments (some of which are capped):
If a payment is not on this list, it is banned. For more detailed information on permitted and banned payments, see the guide for Landlords and agents or tenants.
This is the fee taken by the landlord, or agent, to reserve the property for a prospective tenant, while referencing and other checks are carried out and the tenancy agreement is prepared for signing.
The holding deposit can be held for up to 15 days while all the necessary checks are carried out and the tenancy agreement is prepared. This is the default ‘deadline for agreement’ and for the tenancy to start.
If all parties agree, the deadline for agreement can be shortened or lengthened, although as a safeguard this should be put in writing.
If the tenant’s application is successful and the tenancy begins, you must refund the holding deposit within seven days, unless it has been mutually agreed that it can be used towards the first month’s rent.
You cannot stop a tenant backing out of their application but if they choose to pull out during the application process, they may forfeit some, or all, of their holding deposit.
The law has been worded to stop tenants applying for multiple properties while they decide which one to take.
You must refund the holding deposit in full, within seven days.
If the tenant delays the process, for example, by not responding to emails or giving the referencing agency what they need for more than 15 days, the tenant would forfeit some, or all, of their holding deposit. To withhold any part of the holding deposit requires the landlord or agent to inform the tenant of the reasons, in writing within seven days.
If it’s the landlord or agent who’s delaying the process and the delay extends beyond the 15 days deadline for agreement, they would have to refund the holding deposit in full within seven days.
The Tenant Fees Act specifically says that the landlord, or agent, has a duty, before taking a holding deposit, to provide specific ‘clear information’ and a draft tenancy agreement.
For more detailed information on holding deposits, including guidance on the ‘clear information’, please refer to our guide here
TIP – there is no automatic right to withhold all the holding deposit. Circumstances and proof of loss may be necessary to show it is reasonable.
As an agent, can I charge a balloon payment on every rent taken from 1 June and then have some of the additional funds taken out in replacement of a traditional ‘fee’?
No. All costs must be upfront and cannot be hidden from tenants.
Yes. However, the landlord or agent must be able to demonstrate the reason why this is happening and the rent paid must be as advertised. Any agents or landlords found to be breaking the Tenant Fees Act will face enforcement from Trading Standards or the First Tier Tribunal with severe penalties for non-compliance (see enforcement section below).
Yes. Charging rent ‘inclusive’ of utilities is ‘permitted’, providing that it is clear to the tenants at the start of the tenancy and not in addition to, or ‘plus’, the rent. It will be interpreted in line with the tenancy agreements' wording.
No. Even if the tenant has ‘agreed’ voluntarily to pay a fee this may still be considered a prohibited fee.
If a tenant chooses to pay for a service, without it being a condition of the tenancy, then the tenant will be responsible for this fee. An example would be paying for their own inventory where the landlord has chosen not to have one.
No. The ban applies across the private rented sector; to landlords, agents and third parties, such as referencing agencies.
No. These fees are banned under the Tenant Fees Act, which applies to the ‘relevant person’, not just tenants, and is anyone involved in the granting, continuation, renewal or termination of a contract, including prospective tenants, actual tenants, guarantors, etc.
It’s exceedingly widely drafted.
During the 12-month transition period, any fees charged before the Act came into force could still be applied.
Since 1st June 2020, whether a tenancy which was signed before 1st June 2019 and is still in the fixed term or lapsed into a periodic tenancy, any of those fees (now prohibited by the act), must be refunded.
Yes, but they must be optional and not be a condition of the tenancy. For example:
Remember that the transparency of any fees, or commission you may earn, is vital when looking to sell a service or product to a tenant. For more information on this see Trading Standards guidance on declaring fees which is recommended for lettings and sales.
Landlords and letting agents have a duty under the Consumers Rights Act to display any fees clearly and this has been extended by the Tenant Fees Act. See our guide on publishing fees.
Tenancy deposits and the act
Yes, but only if they are given a choice between paying a five-week refundable deposit or a non-refundable insurance premium, and if all parties agree to it. Landlords and agents are unable to tell tenants to use a deposit replacement product, without first giving them a choice, as the upfront charge will be seen as a prohibited payment.
Yes, if the evidence shows that the tenant has returned the property cleaned to a worse standard than it was when the tenancy began. This would be a breach of the contract, and a reasonable deduction can be made from the tenancy deposit.
No, if the property has been left cleaned to the same standard it was at the start of the tenancy.
No. A pet ‘deposit’ or any additional deposit which totals more than five or six weeks’ rent, depending on the annual rent, will be a prohibited fee.
A landlord or agent can potentially negotiate an increased rent for permitting a pet in the property. But an agent must make sure they comply with the Consumer Protection Regulation Act 2008 and the fee is:
Only if the protected deposit is less than the five/six-week cap, which means an additional deposit could be taken, up to the permitted limit.
In addition, the agent may be able to charge a permitted fee of up to £50 for preparing an addendum to the contract allowing the pet.
No. This would be a condition of the granting of a tenancy and this is a prohibited fee.
No. A landlord or agent could purchase pet insurance but not pass the cost on to the tenant. This would constitute a ‘prohibited fee.’ If the tenant chooses to buy the insurance, without it being a condition of the tenancy, then the tenant is responsible for the cost.
Trading Standards have a duty to enforce as well as local authorities.
Tenants or ‘relevant persons’ can inform their local Trading Standards, apply to the First Tier Tribunal for a refund of the prohibited fee, or apply to the relevant redress scheme.
You can find your local trading standards office here. Tenants have the option of recovering prohibited fees through the First Tier Tribunal.
Read more about your local trading standards authority.
No, not for a single offence. However, if two or more financial penalties are issued within a 12 month period, the local housing authority has the discretion to apply for the landlord, or agent, to be added to the database.
Yes. There are two types of appeal which can be made to the First Tier Tribunal, within 28 days from the day after the final notice was served:
