The Tenant Fees Act 2019 (TFA) looks straightforward at first glance: no admin fees, no referencing fees, no inventory fees. But seven years in, enforcement tells a different story. Councils issue £5,000 civil penalties for a single banned fee on first breach, and £30,000 (or criminal prosecution) for repeat offences.
The Renters Rights Act 2025 doesn't replace the TFA — it sits alongside it, but the ban on rent-in-advance beyond one month from 1 May 2026 effectively closes one of the last loopholes used to dress up banned fees. In 2026 the enforcement focus is on three areas: holding deposits held too long, default fees beyond actual loss, and landlord pressure to pay 6 months up front.
This guide lists every payment that is legal under the TFA + RRA 2025 combined, the exact caps, and the three record-keeping habits that keep you out of trouble.
The permitted payments: complete 2026 list
Only the following payments may be required from a tenant on an assured shorthold tenancy (until 1 May 2026) or assured periodic tenancy (from 1 May 2026 onwards) in England:
| Permitted payment | Cap / rules | Notes |
|---|---|---|
| Rent | No cap on amount, but capped at 1 month in advance from 1 May 2026 (RRA) | Must be clearly defined in the tenancy |
| Refundable tenancy deposit | Up to 5 weeks' rent (6 weeks if annual rent ≥£50,000) | Must be protected within 30 days |
| Refundable holding deposit | Up to 1 week's rent | Must be refunded or applied against rent within 15 days, or deadline agreed |
| Default fees | Only late rent + lost keys | Late rent: only after 14 days, capped at 3% above Bank Base. Lost keys: actual cost only |
| Utilities, council tax, communications, TV licence | Actual cost only | If expressly included in the tenancy |
| Variation / assignment fee | Up to £50 | Only at tenant's request |
| Early termination fee | Landlord's actual loss | Only if tenant requests it |
Anything not on this list is a prohibited payment, regardless of how it's labelled.
The three most common 2026 enforcement cases
1. Holding deposit held longer than 15 days
You can take a holding deposit of 1 week's rent. But if you haven't let the property, signed contracts or given the tenant a reason by day 15, you must refund it in full. Councils are auditing email threads to check — so keep the paper trail.
2. "Cleaning fees" dressed up as default fees
You cannot charge a flat £100 "cleaning fee" at the end of the tenancy as a matter of course. You can deduct from the deposit for specific damage or cleaning beyond "fair wear and tear", evidenced with invoices.
3. Rent-in-advance beyond 1 month (RRA 2025)
The classic "pay 6 months up front as foreign tenant / sole trader / poor referencing" is banned from 1 May 2026. Demanding more than 1 month + 5 weeks deposit is a prohibited payment offence.
Acceptable workarounds:
Record-keeping: the three habits
Habit 1: Itemise every payment in the tenancy agreement
Ambiguity is your enemy. List: "rent £X/month + refundable deposit £Y + utilities at actual cost (council tax, gas, electricity, water)". Do not say "plus agent's costs" or "admin fee".
Habit 2: Issue dated receipts for every payment
Every payment in and out should be traceable. Bank transfers beat cash. If a tenant pays you directly, issue a PDF receipt same day.
Habit 3: Document default fee workings
If you charge for lost keys, keep the locksmith invoice. If you charge late-rent interest, show the Bank Base calculation and the 14-day clock.
Penalties 2026
FAQs
Can I charge a check-out inventory fee?
No — check-in and check-out inventory fees are prohibited. Cost must be absorbed by the landlord.
Can I charge a referencing fee?
No — a flat tenant-paid referencing fee is banned. You must pay the referencing provider yourself.
Can I charge for a replacement tenant?
Only your actual, reasonable costs (re-listing, viewings, new contracts). Capped at the rent until a replacement is found.
Does the TFA apply to company lets?
No — company lets are outside the Housing Act 1988 AST regime and the TFA doesn't apply. But many corporate landlords voluntarily mirror it.
Is rent-in-advance always banned from May 2026?
The RRA bans demanding or requiring more than 1 month in advance. A tenant can voluntarily pay more (e.g., paying for the whole first month plus current-month rent at move-in). The test is: did the landlord apply pressure?
Where to go next
Start your 14-day LetCompliance trial to log every payment (deposit, rent, default fee) per tenancy — the audit trail councils actually ask for.
📄 Free PDF — 2026 UK Landlord Compliance Cheat Sheet
Every Gas Safety, EICR, EPC, deposit and Right to Rent deadline on one printable A4 page. Updated for the Renters’ Rights Act 2025.
- Every UK statutory deadline by document type
- Maximum penalty per breach (HSE, MEES, RtR, deposit)
- What blocks a Section 8 / Form 6A possession claim
- Print-friendly A4 with checkboxes
Frequently asked questions
What fees can landlords still legally charge in 2026?
Only: rent, refundable tenancy deposit (up to 5 weeks’ rent, 6 weeks if annual rent ≥ £50k), refundable holding deposit (up to 1 week’s rent), default fees (late rent at 3% above Bank Base after 14 days; lost keys at actual cost), utilities/council tax/TV licence (actual cost), variation/assignment fee at tenant’s request (capped at £50), and early termination fee (landlord’s actual loss). Everything else is a prohibited payment.
Can I still take 6 months’ rent in advance in 2026?
No — from 1 May 2026 the Renters Rights Act caps rent-in-advance at 1 month. Demanding more is a prohibited payment. Acceptable alternatives: a UK-resident guarantor, a higher rent figure (consistently applied), or a professional guarantor service (Housing Hand, Homepact).
Is a cleaning fee at the end of tenancy legal?
No — a flat "end-of-tenancy cleaning fee" is a prohibited payment. You can only deduct from the deposit for specific damage or cleaning beyond fair wear and tear, and only with supporting invoices.
What is the penalty for a first-breach prohibited payment?
Up to £5,000 civil penalty from Trading Standards for a first breach, rising to £30,000 or criminal prosecution for a second breach within 5 years. The landlord may also be blocked from serving a Section 8 notice while the prohibited payment is retained.
Related UK landlord guides
More on Compliance Guide