Tenant Fees Act permitted payments in 2026: what letting agents can and cannot charge
The full list of payments agents and landlords can take from tenants in England, holding deposit rules, rent in advance since 1 May 2026, and the fines.
Letting agents and landlords in England can only take the payments on a short, fixed list. Anything else asked of a tenant is a prohibited payment and has to be repaid, with a fine on top.
The Renters' Rights Act added new limits from 1 May 2026, most importantly on rent in advance. This guide lists every permitted payment as it stands now, explains holding deposits, and sets out the penalties. Checked against gov.uk on 17 September 2026.
At a glance: the permitted payments
| Payment | Limit |
|---|---|
| Rent | Only once the tenancy agreement has been signed |
| Rent in advance | Up to one month's rent (28 days for periods shorter than a month), after signing and before the tenancy starts |
| Tenancy deposit | 5 weeks' rent if annual rent is under £50,000; 6 weeks' if £50,000 or more |
| Holding deposit | Up to 1 week's rent, refundable |
| Changing the tenancy at the tenant's request | £50, or reasonable costs if higher |
| Ending a periodic tenancy early at the tenant's request | Up to the rent the landlord would have received had the tenant given proper notice |
| Late rent | Interest at no more than 3% above Bank of England base rate, on rent 14 days or more late, if in the agreement |
| Lost key or security device | Reasonable costs, if in the agreement |
| Utilities, communications, TV licence, council tax | Where the tenant is responsible for them |
Anything not on this list, such as referencing, admin, check-in, inventory or renewal fees, cannot be charged to the tenant.
Rent and rent in advance
Since 1 May 2026, for assured tenancies:
- a landlord or agent cannot ask for, encourage or accept rent before the tenancy agreement is signed
- once it is signed, and before the tenancy starts, they can ask for no more than one month's rent (or 28 days' rent where rent is due more often than monthly)
The old practice of taking several months' rent up front to strengthen a weak application is no longer allowed. A guarantor is the usual alternative.
Holding deposits
- Cap: one week's rent.
- One at a time: you can only take one holding deposit for a property at a time.
- Deadline for agreement: by default, the tenancy agreement should be signed within 15 days of the holding deposit being paid, unless a different date is agreed in writing.
- Refund within 7 days if the tenancy agreement is signed (unless it is put towards the rent or deposit), if the landlord decides not to let, or if the deadline passes without it being the tenant's fault.
The holding deposit can be kept if the tenant fails a Right to Rent check, withdraws, does not take reasonable steps to sign by the deadline, or gave false or misleading information that affected the decision to let. Tell the tenant in writing why it is being kept.
Tenancy deposits
A tenancy deposit is capped at five weeks' rent where the annual rent is under £50,000, or six weeks' rent at £50,000 or more. It must then be protected in a government-approved scheme. See tenancy deposit protection rules, or work out the cap with our free deposit cap calculator.
Default fees
Default fees are only allowed where they are written into the tenancy agreement:
- Late rent: interest at up to 3% above the Bank of England base rate, on rent that is 14 days or more overdue.
- Lost keys or security devices: the reasonable cost of replacing them. Keep evidence of the actual cost.
A flat "late fee" or a charge above actual costs is not a permitted payment.
Penalties
| Breach | Maximum |
|---|---|
| First breach | Civil penalty of up to £5,000 |
| Repeat breach within 5 years | Civil penalty of up to £30,000, or prosecution |
| Prosecution | Unlimited fine, and a possible banning order |
The same penalties apply to asking for, encouraging or accepting rent before a tenancy agreement is signed. Prohibited payments must be repaid to the tenant.
A checklist for agencies
- Remove every fee from your tenant-facing price list that is not on the permitted list.
- Do not request any rent until the tenancy agreement is signed.
- Cap rent between signing and the start date at one month.
- Take one holding deposit per property, capped at one week's rent, with the deadline for agreement in writing.
- Refund holding deposits within 7 days when required, and put reasons in writing when you keep one.
- Check deposits against the five- or six-week cap on every let and every rent change.
- Only charge default fees that are in the tenancy agreement, at actual reasonable cost.
For advertising rules and the rental bidding ban, see advertising a let after 1 May 2026.
How Letfold helps
Letfold keeps each tenancy's rent schedule, deposit and payments in one record, so the amounts taken at the start of a tenancy are easy to check against the caps. Tenancy agreements are sent for e-signing, which gives a clear signed date before any rent is requested. See tenancies and rent.
Frequently asked questions
What fees can a letting agent charge a tenant in England?
Only permitted payments: rent, a capped tenancy deposit, a capped holding deposit, £50 (or reasonable costs) to change the tenancy at the tenant's request, early termination costs at the tenant's request, utilities and council tax, and default fees for late rent or lost keys where they are in the agreement.
How much rent in advance can a landlord ask for?
None before the tenancy agreement is signed. After signing and before the tenancy starts, up to one month's rent, or 28 days' rent for shorter rental periods.
How much can a holding deposit be?
No more than one week's rent.
When must a holding deposit be refunded?
Within 7 days of the tenancy agreement being signed, the landlord deciding not to let, or the deadline for agreement passing without the tenant being at fault.
What is the fine for charging a prohibited payment?
Up to £5,000 for a first breach, and up to £30,000 or prosecution for a repeat breach within five years.
Sources
Checked on 17 September 2026:
- Tenant Fees Act 2019: statutory guidance for enforcement authorities (as amended by the Renters' Rights Act 2025) (gov.uk, updated 1 May 2026)
- Asking for rent in advance: guidance for local authorities (gov.uk)
- Tenant Fees Act collection (gov.uk)
This article is general information for England, not legal advice.
Run your lettings in one place
Properties, tenancies, rent, repairs and compliance reminders, with portals for tenants, landlords and contractors.
Start your 30-day free trial