Prohibited payment

What is a prohibited payment?

A prohibited payment is any fee or charge that a landlord or letting agent asks a tenant to pay that isn't permitted under the Tenant Fees Act. The only lawful payments are rent, the capped security deposit, the capped holding deposit, and some very specific charges. Everything else is banned.

Before the Tenant Fees Act 2019 came into force on June 1st, 2019, letting agents and landlords could charge tenants for almost anything. Referencing fees, administration fees, renewal fees, inventory fees, check-out fees, and "contract negotiation" charges were routine, often adding hundreds of pounds to the cost of renting.

The Act banned all of these. The only payments a landlord or agent can lawfully require from you are:

rent,
a security deposit within the deposit cap,
a holding deposit, capped at one week's rent,
a charge of up to £50 for a tenancy agreement variation you've requested (which isn't really relevant anymore with the Renters' Rights Act),
a charge for late rent if rent is more than 14 days overdue, capped at 3% above the Bank of England base rate, and
a charge for replacing lost keys, limited to the landlord's reasonable costs.

Any other fee is a prohibited payment. First offences can result in a fine of up to £5,000, while repeat offences are a criminal offence carrying fines of up to £30,000. The Renters' Rights Act 2025 also prohibits demanding more than one month's rent in advance, but tenants are free to offer to pay more than one month's rent up-front after the tenancy begins.

Frequently asked questions

Is a referencing fee a prohibited payment?

Yes, tenant referencing fees have been banned since June 1st, 2019. The landlord or agent must cover the cost. If anyone asks you to pay, it's a prohibited payment.

What should I do if I've already paid a prohibited fee?

Contact Citizens Advice for guidance on recovering the payment. You can also report the landlord or agent to your local council's trading standards team, which can investigate and impose a civil penalty.

Can my landlord charge me for a tenancy renewal?

No, renewal fees are prohibited. Since all tenancies are now periodic under the Renters' Rights Act 2025, there are no renewals, but even before the Act, charging a fee for renewing a tenancy was banned under the Tenant Fees Act.

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