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I’ve been asked to pay a fee

is that allowed?

Most letting agent fees are unlawful throughout the UK – the rules are set out in each country below.

ENGLAND

As of 1st June 2020, all fees are regulated under the Tenant Fees Act, and this has been updated by the Renters Rights Act. Your landlord or letting agent can only charge you for the following:

  • Rent
  • Security deposit (this must be protected in a registered scheme) – capped at 5 weeks’ rent for most tenancies
  • Holding deposit to take the property off the market – capped at 1 week’s rent Read more
  • Ending the tenancy without giving the full two months’ notice – This cannot be more than the amount of rent that you would have paid if you gave the right amount of notice. Read more
  • Change to the tenancy agreement – limited to £50 or the landlord/agent’s costs if higher Read more
  • Replacing lost keys and security devices (e.g. electronic fobs)
  • Interest on late rent payments – limited to the Bank of England base rate plus 3% on rent outstanding after 14 days 

Government guidance about the ban is available here.

If you have have been charged an illegal fee, you have three options:

Let us know about illegal practices you encounter here.

Trading Standards and the redress schemes don’t publish much information about these sorts of cases, but the Tribunal does and appears to be a fairly straightforward way of getting your money back. If you do try any of these approaches, please let us know how you get on.

SCOTLAND

Fees are banned. The law on fees was clarified in 2012; Shelter Scotland has more information here.

If you are charged an illegal fee, contact: the Letting Agent Register

WALES

No, as of 1 September 2019, the Renting Homes (Fees) (Wales) Act 2019 bans most fees, along similar lines to England’s ban.

If you are charged an illegal fee, contact: the RentSmart Register

NORTHERN IRELAND

A court case in 2018 cast doubt on the ability of letting agents to charge fees. The Department of Communities has since issued this guidance:

“You are well aware of fees charged by letting agents and may have paid such fees before you became a private tenant. Where the fees cover work done by the letting agents as part of their service to the landlord, such fees may be recovered if you have evidence that you paid such letting or associated fees in the last six years.

“Whilst a recent court case confirms the current law (the Commission on the Disposal of Lands (Northern Ireland) Order 1986) it does not follow that in all circumstances there will be an automatic entitlement to a refund. It is important therefore that anyone who may have been impacted seeks advice. You can visit the Housing Rights website at http://housingrights.org.uk/news/letting-agents-ordered-court-repay-fees-charged-tenants or call the Housing Rights helpline on 028 9024 5640 for more information.”

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You might also find quick but informal help on ACORN’s Facebook forum, and there are more suggestions on The Renters Guide.