Since 1 June 2019, landlords and letting agents in England can't require tenants to make any payment in connection with a tenancy unless it's a permitted payment. Sections 1 and 2 of the Tenant Fees Act 2019 set the prohibitions for landlords and for letting agents respectively; Schedule 1 lists what's permitted.
Permitted payments
In summary, the permitted payments are:
- rent;
- a refundable tenancy deposit, capped at five weeks' rent (six weeks' if the annual rent is £50,000 or more);
- a refundable holding deposit, capped at one week's rent;
- payments to change the tenancy at the tenant's request (capped at £50 unless higher reasonable costs are shown);
- payments on early termination at the tenant's request;
- utilities, communication services, TV licence and council tax, where the tenancy makes the tenant responsible;
- default fees only where the tenancy provides for them: late rent (more than 14 days late, with interest capped) and replacing lost keys or security devices, limited to reasonable costs.
Anything else, such as a referencing fee, an admin fee, a check-out fee or a charge for renewal, is likely to be a prohibited payment. Check Schedule 1 for the exact conditions.
Consequences
Trading standards enforce the Act and can impose financial penalties. Tenants can apply to the First-tier Tribunal to recover prohibited payments. A landlord who has taken a prohibited payment and not repaid it may also face restrictions on seeking possession.
Records to pull
- The tenancy agreement, especially any default fee clauses.
- Every payment taken from the tenant: amount, date, what it was for.
- For changes or early termination: the tenant's request and the cost breakdown.
Answering it
Match each charge to a specific permitted payment in Schedule 1 and the conditions attached to it. If a charge doesn't fit, the straightforward response is to refund it and say so.
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