Tenant Fees and Holding Deposits: What You Can Be Charged

Payments that are allowed

Permitted payments are set out in the Act. If a charge is not on this list, you are unlikely to have to pay it, however it is described.

• Rent
• A refundable tenancy deposit, capped at five weeks’ rent, or six weeks’ where the annual rent is £50,000 or more
• A refundable holding deposit, capped at one week’s rent
• Up to £50, or reasonable costs if higher, to change the tenancy at your request
• Certain early termination costs, if you ask to leave early
• Utilities, communication services, TV licence and council tax
• Default fees for late rent or lost keys, if your agreement allows them

Common fees that are banned

Charges for viewings, referencing, credit checks, setting up a tenancy, inventories, check-out, renewals and professional cleaning are generally banned. Renaming them “admin” or “processing” does not make them lawful. A landlord also cannot require you to buy a service from a third party, such as insurance, as a way around the ban.

How holding deposits work

A holding deposit reserves a home while checks are carried out, and it cannot be more than one week’s rent. Only one holding deposit can be held for a home at a time. The usual deadline for agreeing the tenancy is 15 days from when the deposit is paid, unless you both agree a different date in writing.

It should normally be returned within seven days of the tenancy being agreed, of the landlord deciding not to go ahead, or of the deadline passing. It can be put towards your first rent or tenancy deposit if you agree.

When a holding deposit can be kept

A landlord can keep it in limited cases, including if you fail a Right to Rent check, provide false or misleading information, or change your mind. They should tell you in writing why they are keeping it, within seven days of deciding not to go ahead. If you do not get a reason, or the reason does not fit, ask for your money back in writing.

Late rent and lost keys

A default fee for late rent can only apply once rent is at least 14 days late, and interest is capped at 3% above the Bank of England base rate. A lost key charge must reflect the reasonable cost and should be supported by evidence, such as a receipt. Ask to see that evidence before you pay.

How to get a banned fee back

Write to the landlord or agent, name the charge, and ask for repayment by a specific date. If they refuse, report it to your council’s trading standards team, which enforces the Act. You can also apply to the First-tier Tribunal to recover a prohibited payment or a holding deposit. Keep bank records and any message showing what the money was for.

Questions people ask