What Fees Can a Letting Agent Charge?
What letting agents are allowed to charge tenants in England, what's banned, and what to do if you're charged illegally.
If you’ve ever been confused about letting agent fees, you’re not alone. Since the Tenant Fees Act 2019 came into force, many of the charges that used to catch renters off guard are no longer legal. But not everyone knows their rights, and some letting agents still try their luck. Here’s a clear breakdown of what you can and can’t be charged.
At a glance
- The Tenant Fees Act 2019 strictly limits what letting agents can charge tenants in England.
- Permitted fees include rent, a capped deposit, a holding deposit, and certain default charges.
- Prohibited fees include admin charges, referencing fees, inventory fees, renewal fees, and viewing charges.
- If you’re charged an illegal fee, report it to trading standards or your local council.
- Rules differ in Scotland and Wales, though tenant protections exist in both.
What can letting agents charge you?
Under the Tenant Fees Act 2019, only the following payments are permitted:
| Permitted fee | What it covers |
|---|---|
| Rent | The agreed monthly amount in your tenancy agreement |
| Tenancy deposit | Capped at five weeks’ rent for annual rents under £50,000, six weeks above that |
| Holding deposit | Up to one week’s rent to reserve a property while your application is processed |
| Default fees | Late rent (charged only after 14 days of arrears) and replacing lost keys or security devices |
| Tenancy change fees | If you request a change, such as adding a tenant, capped at £50 or reasonable costs if higher |
| Early termination fees | Only the landlord’s actual financial losses if you request to leave before the fixed term ends |
Anything outside this list is almost certainly prohibited. For more on deposits, our guides on what a holding deposit is and how much deposit a landlord can charge cover the rules in detail.
What letting agents cannot charge you
Under the same legislation, most fees that tenants used to face are now banned:
- Admin or setup fees. Those ‘administration charges’ that used to appear at the start of a tenancy are illegal.
- Referencing and credit check fees. Tenants cannot be charged for checks run on them.
- Inventory and checkout fees. These used to be standard at the start and end of a tenancy. They’re prohibited.
- Renewal or contract fees. No charge can be made for renewing your tenancy agreement.
- Guarantor-related fees. If you need a guarantor, no additional fees can be attached.
- Viewing fees. Charging to view a property is illegal.
- Professional cleaning fees. Landlords can require you to return the property in a clean condition, but cannot require you to pay for professional cleaning services unless you’ve breached the specific terms of your tenancy.
For example: a tenant is told by a letting agent that they need to pay a £150 referencing fee and a £75 admin charge before they can proceed with their application. Both are prohibited under the Tenant Fees Act 2019. The tenant reports this to their local council’s trading standards team, and the fees are returned.
How holding deposits work
A holding deposit, typically requested while your application is being processed, is capped at one week’s rent. You’re entitled to a refund if:
- The landlord or agent pulls out of the letting.
- A tenancy is agreed within 15 days, unless you both agree a different deadline.
- The landlord or agent fails to meet their own obligations, such as providing required documents.
You may lose the holding deposit if you provide false information on your application, fail right-to-rent checks, or decide not to proceed. For more on your rights around the right-to-rent process and what documents you’ll need, our guide on what documents you need to rent a house covers what to prepare.
What to do if you’re charged an illegal fee?
Charging a prohibited fee is a criminal offence under the Tenant Fees Act 2019. If it happens to you:
- Ask for the fee back in writing. State clearly that the charge is prohibited under the Tenant Fees Act 2019 and request a full refund.
- Report it to trading standards. You can do this via Citizens Advice or directly through GOV.UK.
- Contact your local council. Local authorities can investigate and issue fines of up to £5,000 for a first offence.
- Check the agent’s redress scheme membership. Letting agents in England must be registered with an approved redress scheme, either the Property Redress Scheme or the Property Ombudsman. You can raise a formal complaint through either.
You’re entitled to a full refund of any illegal charges. Don’t accept them as a fait accompli.
Rules in the rest of the UK
The Tenant Fees Act 2019 applies in England only. The rules elsewhere are:
| Region | Key rules |
|---|---|
| England | Tenant Fees Act 2019 applies. Most tenant fees banned. |
| Wales | Renting Homes (Fees etc.) (Wales) Act 2019 applies. Similar protections to England. |
| Scotland | Most tenant fees have been banned since 2012. Only rent and a deposit can be charged. |
| Northern Ireland | Different rules apply. Check NI Direct for current guidance. |
Before you sign
Before committing to a property, it’s worth reading our guide on what to check before signing a tenancy agreement to make sure everything is in order. It’s also worth understanding your tenancy agreement thoroughly before you sign.
And once you’re in, don’t forget that your landlord’s insurance covers the property, not your belongings. Lemonade’s contents insurance is built for renters and straightforward to set up.
Bottom line
Knowing what letting agents can and can’t charge puts you in a much stronger position as a renter. The Tenant Fees Act 2019 removed most of the fees that used to catch people out. If you’re charged anything that isn’t on the permitted list, you have clear legal routes to get it back.
Letting agent fees FAQs
Can a letting agent charge an administration fee in England?
No. Administration fees are explicitly prohibited under the Tenant Fees Act 2019. If a letting agent charges you an admin fee, it’s an illegal charge.
Is a holding deposit refundable?
In most cases, yes. You’re entitled to a refund if the landlord or agent pulls out, or if a tenancy is agreed within 15 days. You may lose it if you provide false information, fail right-to-rent checks, or decide not to proceed with the tenancy.
What can a letting agent charge for at the end of a tenancy?
Only costs that relate to actual damage or breaches of the tenancy agreement. Inventory fees and checkout fees are prohibited. Deductions from your deposit must be evidenced and reasonable.
What should I do if a letting agent charges me an illegal fee?
Request a refund in writing, citing the Tenant Fees Act 2019. If they refuse, report it to trading standards or your local council. You can also raise a complaint with the letting agent’s redress scheme. Local authorities can issue fines of up to £5,000 for a first offence.
Do letting agent fee rules apply in Scotland and Wales?
Yes, though the rules differ. In Scotland, most tenant fees have been banned since 2012. In Wales, similar protections to England apply under the Renting Homes (Fees etc.) (Wales) Act 2019. In Northern Ireland, different rules apply. Always check the legislation specific to where you’re renting.
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