In the UK rental market, fees and deposit management are often the main sources of disputes between tenants and landlords. To regulate the industry and protect tenants from unfair charges, the UK introduced the Tenant Fees Act 2019, which strictly limits what landlords and letting agents can charge, and sets clear rules for how deposits must be handled.
1. What fees are actually legal?
The law creates a “whitelist” of permitted charges. Landlords and agents may only require the following:
- Rent
- Refundable tenancy deposit
- Refundable holding deposit
- Utility bills and council tax
- A small number of “default fees,” such as late rent charges or the actual cost of replacing lost keys
Any other fees—such as application fees, reference check fees, cleaning fees, renewal fees, or check-out inspection fees—are illegal.
In other words, many of the “hidden charges” that used to be common are now strictly banned.
2. Legal requirements for tenancy deposits
Deposits are another frequent source of conflict.
Landlords must register the tenant’s deposit with one of the three government-approved tenancy deposit protection schemes and provide written information to the tenant.
If they fail to do so, the landlord may face penalties of up to three times the deposit amount, and will also face difficulties regaining possession of the property in the future.
3. Common disputes and legal remedies
In practice, most deposit disputes occur at the end of the tenancy.
Landlords often attempt deductions for cleaning, damage to furniture, or unpaid bills. However, the law requires landlords to prove that a genuine loss occurred and to provide evidence.
If they cannot, the arbitration service or court will reject any arbitrary deductions.
Additionally, if the landlord fails to give the tenant certain mandatory documents at the start of the tenancy—such as the How to Rent Guide, the Energy Performance Certificate (EPC), the Gas Safety Certificate, or the deposit protection certificate—the tenant may seek legal remedies, and the landlord may even lose the right to serve a valid notice to end the tenancy.
4. Conclusion
The purpose of the Tenant Fees Act and the deposit protection system is to increase fairness and transparency in the rental market.
For landlords, compliance is the only way to reduce legal risks.
For tenants, understanding your rights is essential for protecting your money and ensuring a safe and fair renting experience.
