Guidance Note: Tenant Fees Act 2019 (England)

This Guidance Note: Tenant Fees Act 2019 is for use by residential landlords, lettings agents, and property professionals in England who need to understand and comply with the legal restrictions on tenant charges and permitted payments. 

What is The Tenant Fees Act 2019?

The Tenant Fees Act 2019 came into force in England to improve transparency in the private rented sector and restrict the fees landlord and letting agents can charge tenants. The Act set outs:

• Which payments are legally permitted under a residential tenancy agreement; and 
• Which fees and charges are prohibited

These Guidance notes have been updated to reflect the significant reforms introduced by the Renters' Rights Act 2025, including:

• Restrictions on rent in advance;
• Changes affecting tenancy structures following the abolition of Assured Shorthold Tenancies (ASTs);
• Increased transparency requirements relating to bills and third-party payments;  and 
• Updated guidance on prohibited payments and enforcement action. 

Welsh landlords should refer to Renting Homes Wales as different legislation applies. 

Why Is Compliance Important?

Failure to comply with the Tenant Fees Act 2019 can result in serious financial and legal consequences for landlords and letting agents. Enforcement action may include:

• Civil penalties of up to £5,000 for an initial breach;
• Financial penalties of up to £30,000 for subsequent breaches within 5 years; 
• Criminal prosecution in serious cases; and
• When a person has been convicted, the penalty is an unlimited fine and a banning order offence under section 14 of the Housing and Planning Act 2016.

Compliance with the updated legislation is essential for landlords seeking to manage residential property lawfully and professionally. 

What Does This Guidance Note Cover?

This updated Guidance Note provides practical guidance on:

• The types of tenancies affected by the legislation;
• Permitted payments under the Tenant Fees Act 2019 (updated by the Renters' Rights Act 2025);
• Prohibited fees and unlawful charges;
• Tenancy deposits and holding deposit limits; 
• Rent in advance restrictions under the Renters' Rights Act 2025;
• Utility bills, Council Tax, and third-party payment transparency requirements;
• Default fees and lawful charging provisions;
• Enforcement powers and penalties for non-compliance; and
• Best practice for landlords and letting agents when granting residential tenancies

These Guidance notes are duplicated in the Estate Agents Terms and Conditions for lettings professionals who manage properties on behalf of landlords. 

By following this Guidance Note, residential landlords and lettings agents can ensure they comply with current legislations, reduce risk of enforcement action, and maintain professional, transparent relationships with tenants. 

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