If a tenant rents their home in the private sector, there are rules about what they can and cannot be charged for. The law lists which fees landlords and letting agents are allowed to charge (permitted payments), anything else is usually banned (prohibited payments).
These rules apply to:
- Assured tenancies (the majority of new private tenancies started from 1st May 2026 are Assured (periodic) tenancies)
- Tenants in a House in Multiple Occupation (HMO)
- Most student accommodation
- Licences to occupy (for example lodgers)
- Assured shorthold tenancies (ASTs). Most private tenancies started before 1st May 2026 were ASTs.
The rules do not apply to:
- Short-term/holiday lets
- Long leases and shared ownership leases
- Excluded licences.
If you are not sure what type of tenancy you have, you should check what it says on your tenancy agreement, or you can use Shelter’s free online Tenancy Checker (external link) to find out.
What tenants CAN be charged (permitted payments)
Currently, the permitted payments in connection with private rented tenancies include the following:
Rent
Tenants can be charged rent in-line with their tenancy agreement. However, tenants cannot be charged any rent before they have entered into a tenancy agreement, nor can they be charged more rent in one period and a lower amount of rent in a later period (this is often called front-loading). For more details, see the Rent-in-advance and Front-loading sections below.
Tenancy deposit
Tenants can be asked to pay a tenancy deposit. The maximum tenancy deposit a tenant is allowed to be charged is 5 weeks’ worth of rent. If a tenant is charged more than the maximum allowed, the difference is a prohibited payment.
- For example, if the monthly rent is £800, then the maximum tenancy deposit allowed is £923.07. If the tenant was required to pay a £1,000 tenancy deposit, then there would be a prohibited payment of £76.93
- To work out the maximum tenancy deposit from a monthly rent, first find the annual rent by multiplying the monthly rent amount by 12, then divide this annual amount by 52 to get the weekly rent. Then times the weekly rent by 5 for the maximum deposit amount allowed
- If the calculation doesn’t work out neatly down to the penny, always round down to the nearest penny otherwise there will be a prohibited payment of 1p.
Holding deposit
Often tenants will be asked to pay a holding deposit to reserve a property while the landlord or letting agent carries out pre-tenancy checks.
The maximum holding deposit a tenant can be charged is capped at 1 weeks’ worth of rent. If a tenant is charged more than this, the difference is a prohibited payment.
- For example, if the monthly rent is £650, the maximum holding deposit that can be charged is £150. So, if a tenant was charged a £200 holding deposit, there would be a prohibited payment of £50
- To work out the maximum holding deposit from a monthly rent, first find the annual rent by multiplying the monthly rent amount by 12, then divide this annual amount by 52 to get the weekly rent
- Holding deposits are generally refundable, but there are rules on how and when they should be refunded and how this may impact other payments owed under a tenancy. Visit Shelter's holding deposits (external link) webpage for more information.
Replacement keys or security devices
If a tenant loses their key or another security device for gaining access to the property, like an access fob, the tenant can be charged for the cost of replacing the key or device, as long as this is stated in the tenancy agreement.
The landlord can only charge the reasonable cost of the replacement, and must provide written evidence of the cost.
Any amount charged above the reasonable cost would be a prohibited payment.
In some circumstances the reasonable cost could be more than just the cost of the new key. For example, if the lost key had the property’s address attached to it, the landlord could reasonably charge for a new door lock.
Late payment of rent/rent arrears
A tenant can be charged for the late payment of rent if the rent is not paid in full by 14 days after it was due, as long as this charge is specified in the tenancy agreement.
A landlord can charge interest, but this cannot be more than 3% above the Bank of England base rate. See Shelter’s page - Tenancy agreements: Deposits, charges and fees (external link) for further information and examples.
Damages for breach of an agreement
Tenants can be charged for damages for a breach of a tenancy agreement or licence. This allows for damages to be deducted from a tenancy deposit or claimed via court action.
Tenancy changes requested by the tenant
If a tenant requests to vary the terms of their tenancy agreement, add a new tenant, or transfer the tenancy to a new tenant, the landlord can charge for this.
The maximum amount that can be charged is capped at £50, or at the reasonable cost faced by the landlord to make the requested change if this is more than £50. Any amount charged above the maximum cap would be a prohibited payment.
Ending a tenancy early requested by the tenant
If a tenant asks to end their tenancy or licence early (rather than providing sufficient notice) they can be charged by their landlord or letting agent.
A landlord can charge for the loss they incur by ending the tenancy early, such as a loss of rental income.
A letting agent can charge for the reasonable costs they incur by ending the tenancy early, such as the costs of remarketing the property.
For assured periodic tenancies (most private tenancies), the amount a landlord can charge is capped at the amount the landlord would have received in rent if the tenant gave the correct amount of notice.
Payments for utilities and services
Landlords can require tenants to pay for council tax, utilities, a TV licence, and communication services, if the tenancy agreement requires the payment to be made.
Tenants can be required to pay a third-party for these utilities and services, which for council tax or a TV Licence can only be the relevant local authority or the British Broadcasting Corporation (BBC).
Alternatively, tenants can be charged for utilities or services as part of their rent, as long as this is specified in the tenancy agreement. Tenants can only be charged the reasonable costs of providing these, and legislation prohibits landlords overcharging tenants for utilities.
Tenants cannot be required to pay for utilities or services separately if they are already covered in the rent.
Utilities include electricity, gas, other fuel, water or sewerage.
Communication services include a landline telephone, the internet, or cable/satellite television.
Independent services fees from letting agents
Letting agents can charge a tenant for providing a service that helps them find a home to rent, and the tenant goes on to rent that home. However, a letting agent can only charge these service fees if they are working completely for the tenant and not acting for the landlord in any way, whether in relation to a home they find for a tenant, or any other property the landlord owns or lets.
What tenants CANNOT be charged (prohibited payments)
It is illegal for a landlord or letting agent to charge a tenant for something which is not a permitted payment. These are known as prohibited payments, and a landlord or letting agent can face enforcement action if they charge prohibited payments.
Common examples of prohibited payments a tenant could be charged include administration or miscellaneous fees, such as:
- Administration fees e.g. for processing applications, inventory checks, fees for printing paper, or fees for preparing contracts
- Viewing fees to view the property before signing a tenancy agreement
- Tenant reference fees, such as charging tenants for referencing or for undertaking credit checks on the tenant
- Fees for renewing or changing a tenancy if this is initiated by the landlord.
Other prohibited payments include:
Third-party payments or contracts
Tenants cannot be required to enter into a contract with a third-party for services or insurance. Exceptions may apply for utilities and communication services, as detailed in the payments for utilities and services section above.
Rent-in-advance
From 1st May 2026, tenants cannot be asked to pay any rent earlier than it is due. This also means that tenants cannot be asked to pay any rent up-front.
There is one exception - if the tenancy agreement has been signed and entered into, then tenants can be required to pay the first month’s rent, and only the first month’s rent, before the tenancy starts.
Rent through front-loading
Tenants cannot usually be charged a higher rent one month, and a lower rent the following month. This is known as front-loading and the difference between the higher and lowest rent charged is a prohibited payment.
For example, if for the first 2 months the rent is £1,000, then the next 3 months’ rent is £900, and then rent is reduced to £750 indefinitely, there is a prohibited payment of £500 in the first 2 months (2 x £250) and a prohibited payment of £450 in the next 3 months (3 x £150), making a total prohibited payment of £950.
An exception that does not count as front-loading is when rent is reduced because both the landlord and tenant have agreed to reduce the rent.
What you can do if you’ve paid a prohibited payment
1. Check
First, check whether the payment is allowed or not. If you are unsure whether the payment is banned, you can get independent advice from organisations such as Shelter, Citizens Advice, or from Wigan Council’s Tenancy Relations Service.
2. Ask the landlord or letting agent to refund the fee
Once you are sure that you have paid a prohibited payment, you should ask for the money back.
Put your request in writing. Clearly state what payment you are referring to and why it was not allowed, and request that it is refunded to you. Keep copies of all communication.
Many disputes can be resolved at this early stage without the need for further action.
3. Complain to the letting agent’s redress scheme
If a letting agent charged you the prohibited fee and won’t refund it to you, you could complain to the redress scheme that they are registered with.
All letting agents are required by law to be registered with a government-approved redress scheme. These schemes can help resolve disputes between tenants and letting agents and can look at issues like unfair or prohibited fees, amongst other issues.
The two government-approved redress schemes are:
If you are not sure which scheme your letting agent belongs to, the above websites let you search for letting agents registered with that scheme. You can also check your letting agent’s website, your tenancy documents, or ask your letting agent directly.
4. Submit a legal claim/take legal action
Tenants who have paid a prohibited payment to their landlord or letting agent can apply to the courts to have the payment refunded.
Claims are made to the First-tier Tribunal (Property Chamber) by completing a TFA1 form (external link) and submitting it to the Tribunal. You will also need to provide evidence to support your claim.
If the claim is successful, the Tribunal can order your landlord or letting agent to refund you the prohibited payment.
There is no set time limit on how soon you have to submit your claim, but if it is more than 6 years since you made the prohibited payment, the claim might not be successful due to statutory limitations.
You may have to pay a small fee to make a claim to the Tribunal. Applicants may be eligible for a waiver or reduction of Tribunal fees through the Government’s Help with Fees scheme (external link).
5. Contact us at Wigan Council
Local authorities enforce the Tenant Fees Act, and other legislation regulating the private rental sector.
You can report a landlord or letting agent if:
- They are asking you to pay a prohibited payment
- They have refused to refund you a prohibited payment you have already paid
- They repeatedly breach legislation.
We can investigate and may issue financial penalties or take further enforcement action.
To report prohibited payments to the Council, use our Report an issue with a private rented tenancy form.
Further information