Understanding The Tenant Fees Act of 2019

What is the Tenant Fees Act of 2019?

The Tenant Fees Act is a set of rules and regulations limiting the allowable fees letting agents and landlords can charge tenants during or before a tenancy. The Tenant Fees Act was introduced in 2019 and came into full effect for all residential lets in June 2020. The act applies to England only and also sets a cap on the allowable tenancy deposit.

Any allowable fee not outlined in the Tenant Fees Act is prohibited and a breach of the act will incur a penalty of up to £5,000 – successive breaches could result in additional fines or even a criminal offence.

It is vital for all landlords to know what fees are and aren’t allowed in order to remain compliant with the law. In this article, we outline what fees are allowed as well as what common fees this act prohibits.

Who Does the Tenant Fees Act apply to?

The Tenant Fees Act applies to assured shorthold tenancies, student accommodation tenancies, and licences to occupy housing in the private rented sector.

The act only applies to landlords and letting agents that are in England. There are already existing fee bans in Scotland. A similar fees act was also passed in Wales with a few key differences, such as no limit placed on deposits. If your property is in Wales, make sure to check out the details of the Renting Homes (Fees Etc.) (Wales) Act 2019.

Recent Developments

1. Court of Appeal confirms no retrospective effect

In Switaj v. McClenaghan [2024] EWCA Civ 1457, the Court of Appeal held that the 2019 Act does not invalidate fees lawfully charged under pre-Act tenancies. Mrs Switaj paid admin/check-out fees under her 2018 tenancy (then lawful); the judge found these did not taint subsequent possession proceedings once the tenancy was renewed post-Act. The ruling makes clear that payments made before 1 June 2019 cannot be challenged under the Act’s prohibitions.

2. Updated enforcement guidance (Dec 2024)

The Government’s statutory guidance for local enforcement authorities was refreshed on 2 December 2024. It reiterates:

• The need for written evidence to justify any reasonable cost claims (e.g., keys, variation).
• That each instance of requesting a prohibited payment counts as a separate breach.
• Tenants can apply to the First-Tier Tribunal to recover wrongfully obtained fees, with local authorities able to assist.

Source: england.shelter.org.uk

3. Forthcoming Renters’ Rights Act amendments

The Renters’ Rights Bill (previously known as the Renters’ Reform Bill) is progressing quickly through the House of Lords and completed the Committee stage in May 2025. Key proposed changes impacting the Tenant Fees Act include:

• Cap on advance rent: landlords will be forbidden from demanding more than one month’s rent in advance (amending Schedule 1 of the 2019 Act).
• Extension to all assured tenancies: replacing “assured shorthold” terminology to cover assured tenancies more broadly.
• Bereaved guarantor protection: preventing fees for guarantors where a tenant dies.
• Enhanced rent repayment orders and funding for a PRS Ombudsman (via modest landlord fees).

Read the full article, An Update on the Renter’s Rights Bill: It’s Worse Than We Thought 

Under the latest parliamentary timetable, Royal Assent is expected by mlate-2025, with parliament aiming to implement this regulation as early as October 2025.

What Fees Can be Charged Under The Tenant Fees Act?

There are a number of central business fees that are still allowable under the Tenant Fees Act. These include:

Who does the Act apply to?

• Tenancy types: Assured shorthold tenancies, student-let tenancies, and licences to occupy.
  
• Geography: England only. Wales and Scotland have separate but broadly similar fee-ban regimes.
  

Permitted payments

1. Rent
2. Tenancy deposit – capped at 5 weeks’ rent if annual rent < £50,000, or 6 weeks’ rent if ≥ £50,000.
3. Holding deposit – capped at 1 week’s rent and refundable (subject to prescribed forfeiture conditions).
4. Variation, assignment or novation – capped at £50 (or reasonable cost if higher, with evidence).
5. Early termination – must reflect the landlord’s actual loss or the agent’s reasonable costs.
6. Utilities, communications, TV licence, Council Tax – as per the tenant’s consumption or actual charges.
7. Default fees (only if in the tenancy agreement):
   
   • Late rent – only after 14 days’ default, capped at 3% above Bank of England base rate.
   • Lost keys/security devices – no more than landlord’s reasonable cost (supported by evidence).

What Fees Are Prohibited Under the Tenant Fees Act?‍

All other upfront or in-tenancy fees are banned. Common prohibited charges include:

• Viewings, credit checks, referencing, inventories, Right to Rent checks, guarantor fees, administration/renewal fees, exit fees, professional cleaning, pet-related fees/deposits, third-party services (unless tenant opts in).

Cleaning and deposit returns

Landlords cannot require “professional cleaning” payments on exit, but may deduct from the deposit for damage beyond fair wear and tear or for bringing the property back to the condition at the start of the tenancy.

For a full list of permitted and prohibited fees please visit the GOV.UK website for guidance.

Additionally, whilst they can advise, landlords cannot make it a requirement of the tenancy that the tenant takes out insurance although they may choose to do so voluntarily.

Understanding Cleaning Fees Under The Tenant Fees Act

Tenants are responsible for returning the property in the same state as when they first rented it. As such, it should be returned as clean as when they moved in. Landlords, however, cannot require a tenant to pay for professional cleaning when they vacate the property. They can request it to be cleaned to a professional standard, but not that they pay for a cleaner. As always, fair wear and tear of the property is not accepted as damage.

If the property is not left in a reasonable condition, landlords can recover costs incurred in returning the property to its original condition. This includes carrying out repairs and recouping costs by claiming them against the tenancy deposit. The landlord, though, cannot claim against the deposit if the tenant returns the property in the same condition as when they first entered it, apart from fair wear and tear.

Changes to Tenancy Deposits

An important part of the Tenant Fees Act is the cap placed on deposits. The total deposit you are allowed to charge is dependent on the annual rent for the property.

• If the annual rent total is less than £50,000, landlords and letting agents are permitted to collect up to 5 weeks’ rent as the deposit.
• In the annual rent total is more than £50,000, then landlords and letting agents are permitted to collect up to 6 weeks of rent as the deposit.

As before, any deposit that is collected must be placed in a government-backed tenancy deposit scheme (TDP) within 30 days of being collected. And returned within 10 days of both parties agreeing upon the amount of the deposit to be returned. If the amount is disputed the deposit must be held in a TDP scheme until the issues are resolved.

GOV.UK advise that you are able to calculate the total annual rent by using the following formulae:

• total monthly rent x 12
• total weekly rent x 52

What are the Penalties for Non-compliance?

Penalties for non-compliance are strict and severe. It is therefore important to know what fees are permitted. And remind yourself that if a fee is not on this list, it is prohibited.

Any breach of the Tenant Fees Act legislation is a civil offence that carries a financial penalty of up to £5,000 per breach. However, if multiple breaches are committed, it could become a criminal offence.

According to GOV.UK “Where an offence is committed, local authorities may impose a financial penalty of up to £30,000 as an alternative to prosecution.” It is down to the local authority’s discretion as to whether they wish to prosecute or impose a financial penalty.

Additionally, failure to return the tenant’s holding deposit in due time will also be treated as a civil offence with a penalty of up to £5,000.

If fees are collected in breach of the Tenant Fees Act, a landlord or letting agent will not be able to evict a tenant until after these fees have been repaid.

Summary of Enforcement and Penalties

• Civil penalties up to £5,000 per breach; local authorities may impose up to £30,000 per offence instead of prosecution.
• Holding deposits not returned within the statutory timescale (7 days or refund-agreed deadline) also incur penalties.‍
• Eviction: prohibited-fee debts must be repaid before a valid Section 21 notice can be served.

What is Considered to be a Breach of the Ban?

Each request you make for a prohibited payment is a breach. For example, the following would be considered multiple breaches:

• “charging different tenants under different tenancy agreements prohibited fees.”
• “charging one tenant multiple prohibited fees for different services at different times.”
• “charging one tenant multiple prohibited fees for different services at the same time.”
• “charging one tenant one total prohibited fee, which is made up of different separate prohibited requirements to make a payment, e.g,. £200 requested for arranging the tenancy and doing a reference check would represent multiple breaches.”

Where you are being fined for multiple breaches at once, and you have not previously been served a financial penalty, the financial penalty for each of these breaches is limited to up to £5,000 each.If in doubt, it is advisable to seek clarification from GOV.UK.

Landlords, letting agents, and tenants can read the government’s comprehensive ‘Tenant Fees Act 2019: guidance’ here.

Final Words: The Tenant Fees Act

Today’s property industry is changing fast. Keeping on top of the various regulations and regulatory changes can seem overwhelming, from MTD to EPC guidelines, Section 24, and, of course, the upcoming Renters’ Rights Bill. 

However, understanding these shifting laws is essential. Landlords and agents need a reliable way to ensure that every holding deposit, tenancy deposit, and variation fee is within the legal caps and supported by clear, auditable records. 

That’s where Landlord Studio comes in: track and log all of your compliance efforts, including deposit amounts, tenancy deposit scheme used, and fees collected. Plus, store all of your important compliance documents in one place with automated personal reminders for key events like property inspections and certificate renewals. 

Whether you’re responding to a tribunal query or simply reviewing your process ahead of the Renters’ Rights Bill, Landlord Studio can help you stay compliant, prepared, and focused on what matters most—running your property business with confidence.

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