Permitted fees
While many fees have been banned, there are still certain fees that are permitted under the Tenant Fees Act. They are:
- Rent
- A refundable tenancy deposit capped at no more than five weeks’ rent for properties with an annual rent below £50,000, or for properties with an annual rent of £50,000+, six weeks’ rent
- A refundable holding deposit capped at no more than one week’s rent
- Early termination fees when the tenant requests an early termination
- Variation, assignment, or novation fees which are capped at £50 (or reasonably incurred costs, if higher)
- Payments for utilities, communication services, TV licences, and council tax unless the tenant is responsible for them
- A default fee for late payment of rent and replacement of a lost key or security device giving access to the housing, when required under a tenancy agreement
Banned fees
All other fees are banned. They include the following:
- Viewing fees. Charging tenants for viewing a property is no longer allowed.
- Tenancy set-up fees. Any fees associated with setting up the tenancy or contracts are prohibited.
- Check-out fees. Charging tenants when they leave the property is also banned.
- Third-party fees. Fees for actions performed by someone other than the landlord or tenant but paid for by the landlord are not allowed.
Enforcement
If a landlord or letting agent unlawfully charges a banned fee, tenants have the right to request a refund of the wrongly paid amount through the county court. Local Trading Standards can assist tenants in recovering these fees.
The penalties for breaching the Tenant Fees Act can be severe. Local Trading Standards may issue fines of up to £5,000 for a first offence, and subsequent breaches are considered criminal offences. These can result in fines of up to £30,000 via civil penalties.
