Tenant Fees Act: What Landlords Can and Cannot Charge in 2026
The Tenant Fees Act 2019 bans most upfront charges. Here's a clear breakdown of permitted payments, capped deposits, and what to do if you've accidentally charged a prohibited fee.
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Introduction
The Tenant Fees Act 2019 fundamentally changed what landlords and agents could charge in England. Six years on, Trading Standards still issues regular fines for prohibited payments hidden as 'admin', 'check-in' or 'inventory' fees. This guide explains exactly what you can and cannot charge in 2026, and what to do if you've slipped up.
The seven permitted payments
The Act allows: (1) rent itself, (2) a refundable tenancy deposit capped at five weeks' rent where the annual rent is under £50,000 or six weeks' where it's £50,000+, (3) a refundable holding deposit capped at one week's rent, (4) payments for changes to the tenancy at the tenant's request, capped at £50 or reasonable costs if higher, (5) payments for early termination at the tenant's request, (6) utilities, council tax, TV licence and communication services, and (7) default fees for lost keys or late rent over 14 days.
What you cannot charge
Prohibited payments include reference fees, credit-check fees, inventory fees, check-in/check-out fees, admin fees, renewal fees, professional cleaning at the end of tenancy as a flat charge, and any fee linked to viewings. You also cannot require the tenant to use a specific (paid) third-party service like an inventory clerk.
Holding deposits in detail
A holding deposit reserves the property while you reference. You must return it within 15 days unless: (a) you sign the tenancy, in which case it goes towards rent or deposit, (b) the tenant fails right-to-rent, (c) the tenant provides false or misleading information that affects suitability, or (d) the tenant withdraws. You must give written reasons within 7 days of deciding to retain.
Deposit cap mechanics
Five weeks' rent means: weekly rent × 5, or monthly rent × 12 ÷ 52 × 5. For a £1,300 pcm let, the cap is £1,500. Taking more — even £1 — makes the deposit prohibited in full, voids any Section 21 notice and exposes you to a penalty.
Default fees
You can only recover the reasonable costs of replacing keys or chasing rent more than 14 days late. Late-rent interest is capped at 3% above the Bank of England base rate. Every default fee must be evidenced with a receipt; flat £25 'admin' charges are not lawful.
Penalties and enforcement
First breach is a civil penalty up to £5,000. A second breach within five years is a criminal offence or a civil penalty up to £30,000. Critically, you cannot serve a valid Section 21 until the prohibited payment is refunded.
How to correct a mistake
Refund the prohibited payment to the tenant in writing within 28 days, keep proof of bank transfer and a signed acknowledgement. This restores your ability to serve Section 21 (while it still exists) and is a strong mitigation if Trading Standards investigate.
Final word
If you'd like Smart Sleep Property to handle this — or any other landlord compliance work — for you, our concierge service covers everything from referencing and right-to-rent to full tenancy management across Norwich and Norfolk.
Frequently asked questions
What is the key rule for tenant fees act?+
The Tenant Fees Act 2019 limits landlords and agents to seven types of permitted payment: rent, refundable deposit (capped at five weeks for rent under £50k pa), holding deposit (one week's rent), variation/assignment fees (capped at £50), early termination costs, utility/council tax/communication s
Does this apply across England?+
Yes — the rules in this guide apply to England. Scotland, Wales and Northern Ireland have separate but broadly similar regimes.
Where can I get help?+
Smart Sleep Property offers compliance support, document templates and full management for Norwich and Norfolk landlords.
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