Moving into a UK rental property often comes with unexpected costs. Many tenants discover that their landlord or letting agent has charged fees that are simply not legal under current legislation.
The Tenant Fees Act 2019 changed the landscape of renting in England. It banned most payments that agents and landlords previously demanded from tenants. Yet unlawful fees still slip through every year.
If you have been charged a prohibited fee, you have the legal right to reclaim it. This comprehensive guide explains exactly which fees are unlawful, how to identify them, and the step-by-step process for getting your money back.
What Are Prohibited Payments Under the Tenant Fees Act 2019?
The Tenant Fees Act 2019 applies to all assured shorthold tenancies, licences to occupy housing in the private rented sector, and student accommodation in England. It broadly bans any payment that is not explicitly listed as a permitted payment.
The permitted payments under the Act are strictly limited. These include:
- Rent – your monthly rent payments
- A refundable tenancy deposit – capped at five weeks’ rent where annual rent is below £50,000
- A refundable holding deposit – capped at one week’s rent
- Payments for default – limited charges for late rent payment or replacement of keys
- Payments for变动 – capped at £50 for requested changes to the tenancy agreement, such as allowing a pet
- Payments on early termination – the landlord’s actual loss from you ending the tenancy early
- Council tax, utilities, and communications – where these are part of the tenancy agreement
Anything outside this list is almost certainly a prohibited payment and is therefore unlawful.
Even if you signed a contract agreeing to pay a prohibited fee, that clause is not legally binding. Under Section 1 of the Tenant Fees Act 2019, you cannot be required to make a prohibited payment regardless of what the tenancy agreement says.
Common Unlawful Tenant Fees Still Being Charged
Despite the ban being in place since 1 June 2019, some landlords and agents continue to demand unlawful charges. Below are the most frequently reported prohibited payments.
Tenancy Administration Fees
Charges for setting up the tenancy, processing paperwork, or conducting reference checks are completely banned. Before 2019, these routinely cost between £50 and £300. If your landlord or agent charges you for their administrative time, this is unlawful.
Inventory and Check-In Fees
Some agents still try to pass the cost of professional inventories onto tenants. This is a prohibited payment. The landlord must cover the cost of creating an inventory as part of their business overheads.
Guarantor Fees
Charging a fee for setting up a guarantor agreement is also banned. Landlords cannot require you to pay for the administrative cost of processing guarantor paperwork.
Renewal Fees
When your fixed term expires and you sign a new agreement, some agents demand a renewal fee. Any charge above £50 for a tenancy change is unlawful, and many renewal fees significantly exceed this threshold.
Check-Out Fees
A number of agents charge a fee when you move out for the final inspection or key handover. This is a prohibited payment and you do not have to pay it.
Referencing and Credit Check Fees
While these were common before the Act, some rogue landlords attempt to bill them retrospectively or bundle them into the first month’s rent. For a full walkthrough on credit reference disputes, see our guide on how to legally dispute a UK landlord credit reference check.
Penalties for Landlords Charging Prohibited Payments
The legislation gives Trading Standards the authority to enforce compliance. The penalties are significant and escalate based on the landlord’s behaviour.
- Initial breach: The landlord may face a financial penalty of up to £5,000.
- Repeat breach within five years: This becomes a criminal offence and can result in an unlimited fine.
- Section 21 restrictions: A landlord who has charged a prohibited fee and has not repaid it is unable to serve a valid Section 21 eviction notice.
This is a powerful shield against retaliatory eviction. If your landlord has charged you an unlawful fee and hasn’t returned it, they cannot evict you using a Section 21 notice. Learn more about this protection in our article on technical errors that invalidate a Section 21 eviction notice.
How to Check Whether a Fee You Paid Is Unlawful
If you are unsure how to classify a charge, work through this checklist to determine whether it constitutes a prohibited payment.
- Identify the exact amount you were asked to pay and the stated reason.
- Compare it against the permitted Payments list outlined in the Tenant Fees Act 2019.
- Check your tenancy agreement for any clauses requesting additional payments.
- Review your payment records including bank statements and receipts.
- Cross-reference against guidance from GOV.UK on the Tenant Fees Act 2019.
If the fee does not fall into one of the clearly defined permitted categories, it is almost certainly unlawful.
Create a spreadsheet listing every payment you made to your landlord or agent. Note the amount, date, and stated reason. Highlight any fee that does not match the permitted payment categories. This将成为 your evidence dossier.
Step-by-Step Process for Reclaiming Unlawful Fees
Reclaiming unlawful tenant fees does not require hiring a solicitor. You can follow this structured approach to recover your money efficiently.
Step One: Gather All Evidence
Collect copies of your tenancy agreement, receipts, bank statements showing the charges, and any email correspondence where fees were discussed or demanded. Take screenshots if necessary.
Step Two: Write a Formal Letter of Request
Draft a clear, written request to your landlord or letting agent. State the specific fees you believe are unlawful, reference the Tenant Fees Act 2019, and request a full refund. Send this by recorded delivery or email with read receipt, so you have proof of submission.
Step Three: Allow a Reasonable Response Period
Give your landlord or agent 14 days to respond and reimburse the fees. In many cases, the mere mention of the Tenant Fees Act 2019 is enough to prompt compliance. For additional guidance on managing rental costs, read our piece on how to budget for permitted UK tenant fees under current law.
Step Four: Escalate to a Redress Scheme
If the agent is a member of a redress scheme such as The Property Ombudsman or the Property Redress Scheme, you can file a formal complaint. Agents are legally required to belong to an approved redress scheme under the Consumers, Estate Agents and Redress Act 2007.
Step Five: Contact Trading Standards
If your landlord or agent refuses to comply, report them to your local Trading Standards office. They have enforcement powers under the Act and can issue penalties of up to £5,000 for the initial breach.
Step Six: Consider the Small Claims Court
As a last resort, you can pursue the matter through the County Court via the Money Claim Online service. Claims under £10,000 fall under the small claims track, making the process accessible without legal representation.
Use PadAudit to keep a complete digital record of every tenancy payment and communication. Staying organised from the start strengthens your position if a dispute arises.
Time Limits for Reclaiming Unlawful Fees
Under the Limitation Act 1980, you generally have six years from the date of the payment to bring a claim in the County Court. However, it is always best to act as quickly as possible.
Evidence fades over time and witnesses become harder to reach. Submitting your claim promptly also demonstrates diligence if the matter escalates.
Even if you moved out years ago, you may still be able to reclaim fees paid during that tenancy. Check your old bank statements and tenancy agreements before assuming the window has closed.
Reclaiming Fees After Your Tenancy Has Ended
A common myth is that you lose your right to reclaim fees once you move out. This is entirely false.
Your right to reclaim unlawful payments persists regardless of whether you still live in the property. The six-year limitation period runs from the date the prohibited payment was made, not from the end of your tenancy.
This is particularly relevant for tenants who budget for moving costs and want to recover funds to put towards their next home. Our detailed guide on how to budget for moving out costs using UK tenant rights covers more strategies for reclaiming funds.
What to Do If Your Landlord Refuses to Refund
Some landlords or agents will push back, insisting the fee was lawful or pointing to a clause in your contract. Do not be intimidated.
- Remember that no contract can override statute. A clause requiring you to pay a prohibited fee is void under the Tenant Fees Act 2019.
- Keep all communication in writing. This creates a paper trail that strengthens your case.
- Seek free advice from Citizens Advice or Shelter if the matter becomes complicated.
- Report persistent non-compliance to Trading Standards, as repeat offenders face criminal prosecution.
How to Protect Yourself Going Forward
The best strategy is prevention. Here are practical steps to avoid being charged unlawful fees in the future.
- Read your tenancy agreement carefully before signing. Highlight any clauses requesting additional payments.
- Ask the agent or landlord in writing to confirm the full cost breakdown before you agree to anything.
- Verify that the agent belongs to a government-approved redress scheme.
- Keep a detailed payment log from day one of your tenancy.
- Familiarise yourself with the permitted payment list so you can spot violations immediately.
Before signing any new tenancy agreement, go through it clause by clause and compare every requested payment against the permitted payments list. Flag anything unusual in writing to the agent immediately.
Related Tenant Rights That Protect Your Budget
Reclaiming unlawful fees is just one way that UK tenant rights can boost your financial position. Many renters overlook other protections that save real money.
For example, you may be entitled to challenge unfair energy bills, claim council tax discounts, or enforce minimum energy efficiency standards. Exploring these additional rights alongside fee reclaiming gives you the strongest overall financial protection during your tenancy.
Frequently Asked Questions
Can I reclaim a fee I agreed to in my tenancy agreement?
Yes. Under the Tenant Fees Act 2019, any contractual clause requiring a prohibited payment is void. It does not matter whether you signed the agreement voluntarily. You cannot contract out of statutory protections, and the fee is reclaimable regardless.
How long do I have to claim back an unlawful fee?
You generally have six years from the date the fee was paid to bring a claim under the Limitation Act 1980. However, acting quickly is always advisable, as evidence becomes harder to gather over time.
What happens if my landlord charges me an unlawful fee and then serves a Section 21 notice?
If your landlord has not repaid the prohibited payment, they cannot serve a valid Section 21 eviction notice under the Housing Act 1988. The notice would be invalid if challenged in court, effectively blocking the eviction until the fee is refunded.
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