Before the removal van arrives at a rented home, a tenant usually pays out money to reserve the property, sign the agreement and secure the keys. In England, the Tenant Fees Act 2019 bans most of those charges. This article summarises the Ministry of Housing, Communities and Local Government’s statutory guidance, updated for the Renters’ Rights Act 2025 and last updated on 1 May 2026. The guidance applies to England only; Wales and Scotland have separate rules. It is general information, not legal advice.
Which tenancies the Act covers
The guidance says the Act applies to assured tenancies (but not social housing assured tenancies), student accommodation, tenants in houses in multiple occupation and licences to occupy, which include lodgers. It also applies to housing associations and local authorities when they let an assured tenancy privately. It does not apply to long leases, shared ownership leases, holiday lets or excluded licences. Properties with annual rent above £100,000 are not covered by the Act.
What cannot be charged
Landlords and letting agents cannot require a tenant, a person acting for the tenant or a guarantor to make a payment when arranging, granting, continuing, varying or ending a tenancy, when the tenant breaches the agreement, or when a reference is given for a former tenant. Tenants also cannot be required to take out a loan, pay for insurance or enter into a contract for a service. The guidance describes the policy as banning all fees except those expressly permitted in Schedule 1 to the Act.
Any term of a tenancy agreement that breaches the ban is no longer binding under section 4 of the Act. Sourcing agents who find a property for a tenant but do not act for the landlord on that property can still charge the tenant fees, according to the guidance.
The payments that are allowed
Landlords and agents can require the following:
- rent, once the tenant and landlord have signed the tenancy agreement;
- a late-payment charge where rent is 14 days or more overdue, if the agreement provides for it, with daily interest not above 3% over the Bank of England base rate;
- a fee to replace a lost key or security device, if the agreement provides for it, limited to reasonable costs and evidenced in writing;
- a fee to change the tenancy at the tenant’s request, expected not to exceed £50 unless reasonable costs are higher;
- a payment if the tenant ends the tenancy early, with limits that depend on the type of tenancy;
- utilities and communication services where not included in the rent, and council tax or a TV licence only as part of the rent or paid directly to the billing authority or the BBC; and
- a refundable tenancy deposit and a refundable holding deposit.
Holding deposits
A holding deposit reserves a property while references are checked. The guidance caps it at one week’s rent for the property as a whole, so three joint tenants cannot each pay a full week’s rent. It must be refunded if a tenancy agreement is signed, the landlord does not go ahead, or no agreement is signed by the deadline. The default deadline is 15 days after the landlord or agent receives the deposit, unless both sides agree a different period in writing. With the tenant’s consent, it can go towards the first month’s rent or the tenancy deposit once an agreement is signed.
A landlord or agent can keep a holding deposit if the tenant fails a right to rent check, withdraws, does not sign despite reasonable steps by the landlord, or gives false or misleading information relevant to suitability. Written reasons must be given within 7 days. The guidance gives a maximum financial penalty of £5,000 for failing to return a holding deposit on time or to give written reasons. The right to rent step is explained in the guide to right to rent checks.
Tenancy deposits and rent timing
A landlord is not legally required to take a tenancy deposit. Where annual rent is below £50,000 the deposit must not exceed five weeks’ rent, and at £50,000 or above it must not exceed six weeks’ rent. Joint tenants share a single cap based on the total weekly rent. For an assured periodic tenancy, a deposit must be protected in a government-backed scheme within 30 days of payment, as covered in the guide to tenancy deposit protection.
On rent, the guidance says landlords and agents cannot require rent before an assured tenancy agreement is signed and must not accept it if offered. In the first year rent should be paid at regular intervals, split equally across the tenancy: charging £800 in month one and £500 afterwards makes the extra £300 a prohibited payment.
Enforcement and moving plans
Local weights and measures authorities enforce the ban in England and can investigate and issue civil penalties to landlords or agents who require a prohibited payment. A repeat breach within five years of a penalty or conviction is a criminal offence, according to the guidance. Ending an English tenancy and the notice rules are explained in the guide to moving out of a rented home in England.
The bottom line
In England the Tenant Fees Act 2019 limits what a tenant must pay when moving into a rented home to rent after signing, a refundable tenancy deposit capped at five or six weeks’ rent, a refundable holding deposit capped at one week’s rent, and a short list of default and change fees. Anything else charged for arranging, granting or ending the tenancy is a prohibited payment. Checking each charge against the permitted list before paying and before booking removals avoids losing money.
Sources
- Tenant Fees Act amended by the Renters’ Rights Act 2025: statutory guidance for enforcement authorities, Ministry of Housing, Communities and Local Government (gov.uk)