Lettings Agents & Fees

For tenancies starting after the 1st June 2019, you can be charged for the following under most private tenancies (including assured shorthold):

1. Being more than 14 days late with rent. The ability for the landlord or agent to charge this must be mentioned in the tenancy agreement. It should not be charged at more than the Bank of England base rate +3%.
2. Lost keys or fobs. You can be charged a reasonable amount for replacement (i.e. cost of production plus arrangement fee). The facility to recharge must be mentioned in your tenancy agreement.
3. Ending your tenancy within the fixed term. If you reach agreement that you can end your contract within the fixed term, the landlord or agent (not both) can charge the cost of any losses incurred. This will also apply if you exit the contract without giving proper notice.
4. Changing your tenancy. Should you wish to change a condition in your contract or assign it to somebody else, a maximum charge of £50 can be levied. To charge more than this amount, the landlord must be able to demonstrate why it is the cost is necessary and proportionate.
5. Tenancy renewal. You can be charged for renewing a tenancy started before 1st June 2019 if there is a clause stipulated in it which states that a charge may be levied.

You can no longer be charged for:

• References
• Administration
• Credit and immigration checks
• Viewing fees
• Tenancy set-up fees 

If you have paid a banned fee, your landlord cannot apply for repossession under a section 21 notice unless they refund you.

It is still legal for a landlord or agent to ask for the following:

A deposit - If the total annual rent is less than £50,000, the maximum deposit is 5 weeks’ rent. If the annual rent is £50,000 or above, the maximum deposit is 6 weeks’ rent. 
A holding deposit - A charge to reserve a property is permitted but it must be refundable and it cannot equate to more than one week’s rent. 
Rent in advance

Landlords and agents can add the cost of utilities and the Internet to your rent if they pay them. They are not permitted to make a profit from this. If you cause damage to your property, a landlord can make a claim against your deposit.

Local authorities can fine landlords or agents who take a banned fee.
If the agent is a member of a letting agent redress scheme, the scheme operator can tell their member to apologise and reimburse you.
You can also apply directly to the First Tier Tribunal to have a fee paid back to you. The Tribunal can make an order for repayment if they are satisfied that a banned fee has been taken.

Landlords and agents were still able to charge fees for things such as reference checks and administrative charges, until 1st June 2020. There was no limit on these fees, but the landlord or agent must have advertised what they charged and what it is used to cover on their website.