Understanding the Tenant Fees Act 

Understanding the Tenant Fees Act 

The Tenant Fees Act 2019 commences from 1 June 2019 and applies to England only. This Act controls what payments a landlord or letting agent may require in connection with a tenancy of housing in England, and restricts what third-party contracts a tenant or guarantor may be required to be bound by for services and insurance.

With the new act, all payments are essentially prohibited unless the payment is “permitted” under the Act.

Tenancies to Which the Act Applies:
Assured shorthold tenancies
Licences (lodger lettings for example)
Student lettings (provided by a specified educational institution)
The Act does not apply to contractual tenancies which would be used if the tenancy is for a company let or if it’s not to be the individuals only or principal home for example.


So, what permitted payments are landlords or letting agents allowed to receive?
- Rent
- Tenancy deposit
- Holding deposit
- Payment in the event of a default
- Payment on variation, assignment or novation of a tenancy
- Payment on termination of a tenancy
- Payment in respect of council tax
- Payment in respect of utilities etc
- Payment in respect of a television licence
- Payment in respect of communication services
- Each one has restrictions and limitations which are discussed individually next.


There are enforcements and penalties in place for those who fail to comply with the regulations of the new act.

The penalty for a first offence is up to £5,000. If a person commits a second offence within 5 years, a penalty of up to £30,000 is payable. In addition, a second offence is a criminal offence.

Any financial penalty is on top of being required to repay any prohibited payments or holding deposit received. Before the enforcement authority imposes a financial penalty, they must serve a notice on the landlord or letting agent of its proposal to do so (a “notice of intent”).

A “final notice” will then be given to the person by the authority, requiring the penalty to be paid within a period specified in the notice (between 7 and 28 days depending on the nature of the breach).

With this in mind, it will be more important than ever for landlords to operate efficiently, especially at the beginning of a tenancy and if a holding deposit is taken.

Ask yourself ‘is the charge in the list of permitted payments?’ If not, play it safe and don’t make a request.