Tenant Fees Act 2019

The letting fee ban will come into effect on 1st June 2019 making various agent and landlord fees illegal. Landlords will only be able to charge for payments defined as permitted in the legislation and deposit charges must be under 6 weeks rent.

The lettings fee ban has already been tested in Scotland since 2012 and has only seen 2% of landlords increase their rents. The aim of the policy is to increase professionalism in the rental market and improve the relationship between landlords and tenants.

Here are some important rules that landlords need to know before the ban comes into action on the 1st of June 2019. The ban is only relevant for contracts signed after the 1st of June:

  • The ban is only relevant for contracts signed after the 1st of June. This will change after 1st June 2020 and will then apply to all tenancies
  • Cleaning and check-out fees will have to be justified by evidence
  • Charges for property viewings will be banned
  • All admin costs will be banned (referencing, credit checks and guarantors)
  • Deposits will be capped at 5 weeks rent or 6 weeks if the annual rent of the property is expected to be more than £50,000
  • Holding fees will be capped at 1 weeks rent and agents will be banned from continuing to advertise a property once they have received payment
  • Contract changes will be capped at £50
  • Moving out ‘early’ charges will be capped to the amount the tenant would pay if they followed through with the tenancy until the end of the agreement
  • Late payments will be capped at annual percentage rate of the Bank of England for each day the payment is outstanding. This must be written in the contract


For more information, please visit the Gov.uk website.