Fees and permitted payments

Payments that are allowed

The only payments a tenant can be asked for are:

• Rent.
• A refundable tenancy deposit, within the cap below.
• A refundable holding deposit, within the cap below.
• A payment to vary the tenancy, for example if the tenant asks for a change to the agreement.
• A payment for late rent, if the tenancy agreement allows it.
• A payment for lost keys or replacement of security keys.
• Payments for utilities, including internet and telephone where these are the tenant’s responsibility.
• Council tax.
• Statutory charges such as licensing fees where these apply to the tenant.
• Payments under a deposit loan or deposit replacement guarantee scheme, where one is used.

Anything a tenant is charged must be set out in the tenancy agreement. If it is not permitted and not in the agreement, it should not be charged.

Holding deposit

A holding deposit is capped at no more than one week’s rent. Once the tenancy starts, it is normally put towards the first month’s rent or the tenancy deposit. It must be returned to the tenant, or the reasons for keeping it explained, within the timescales the law sets.

Tenancy deposit

• Where the annual rent is less than £50,000, the deposit is capped at no more than five weeks’ rent.
• Where the annual rent is £50,000 or more, the cap is no more than six weeks’ rent.
• The deposit is held in a government-approved tenancy deposit protection scheme and the prescribed information is given to the tenant and relevant others within the legal deadline.
• Deductions at the end of a tenancy must be fair, evidenced and agreed — for damage beyond fair wear and tear, unpaid rent, or a cleaning standard the agreement actually required.

This app records the date a deposit was lodged, the date the prescribed information was given, and the date a deposit is due to be returned, so those duties are not missed.

Default charges

• Late rent: interest at 3% above the Bank of England base rate, or a sum stated in the agreement, if the rent is more than two weeks late.
• Varying the tenancy: capped at £50, or the reasonable costs we actually incur if those are higher.
• Lost keys: the reasonable cost of replacing them, or £50 if that is lower.

Payments we cannot ask for

Prohibited payments include charges for:

• Viewing, administering or referencing a tenancy application.
• Preparing an inventory, check-in or check-out report.
• Drawing up or renewing a tenancy agreement, or taking a tenancy deposit.
• Chasing rent or dealing with a complaint.
• Guarantor administration, or a third party’s credit or immigration checks.
• Cleaning or gardener services, unless the tenant has actually failed to meet a cleaning standard the agreement required and the cost is evidenced.
• Any payment that is not permitted by the Tenant Fees Act 2019.

Where a payment is not allowed, a tenant can ask for it back and can report it to Trading Standards or the local authority’s tenancy relations officer.

Landlord charges

Charges we make to landlords for letting and management are agreed in writing before work starts and are set out in the instruction. They are separate from the tenant rules above.

Further information

The government’s guidance on banned fees and deposit caps is at Tenant Fees Act 2019: guidance for landlords and agents. This page is a summary, not legal advice. See also our privacy policy and complaints procedure.