Under the Tenant Fees Act 2019, landlords and lettings agents in England are only allowed to charge tenants a limited number of fees in connection with a tenancy. These are known as "permitted payments". Any fee outside of this list is considered a "prohibited payment" and can lead to enforcement action and financial penalties.

Permitted Fees Under The Act

The following payments are permitted under the Act:

Rent 

Rent is a permitted payment and must be clearly stated in the tenancy agreement, charged consistently and free from hidden or additional charges.  

Tenancy Deposit 

Tenancy deposits which are subject to the following limits:

• five weeks' rent for annual rents below £50,000; or 
• six weeks' rent for annual rents of £50,000 or more. 

Additionally, Tenancy Deposits must be protected in a government approved tenancy deposit protection scheme. 

Holding Deposit 

Holding deposits  to reserve the property before the agreement is signed which are capped to one week's rent and must be refunded or applied to the tenancy. Landlords should consider a Landlord’s Holding Deposit Agreement for AST (England) when accepting holding deposits. 

Default Fees 

These fees which usually relate  to late payment of rent and lost keys, must be expressly written into tenancy agreements or will be deemed a "prohibited payment". 

Amendments to a tenancy or early termination of a tenancy at the request of a tenant will be a permitted payment. 

Landlords should make reference to the Tenant Fees Act 2019 (England) Matrix and  Guidance Note: Tenant Fees Act 2019 (England) for more guidance on The Act.