Don't forget the Tenant Fees Act!

Amid the noise and fury surrounding the imminent introduction of phase one of the Renters' Rights Act 2025 (RRA) on 1 May, it can be easy to overlook the reverberations it is sending through existing legislation relating to private renting.

The Tenant Fees Act 2019 (TFA) is one such act – and, given the more robust sanctions under the RRA for non-compliance, it is important for landlords to understand what is changing.

Remind me what the Tenant Fees Act does?

The TFA was enacted in 2019 to stop tenants being charged unfair or hidden costs by landlords. It works by banning all payments and then listing a limited number of 'permitted payments'. The TFA applies to all assured shorthold tenancies, as well as licences and student accommodation, but does not apply to holiday lettings (among others).

What can landlords charge?

Rent is a permitted payment, of course, as well as the following:

• Deposits: landlords can take deposits, but not more than five weeks' rent where the annual rent is less than £50,000 (or six weeks' rent where the annual rent is greater than that). Although rent usually increases over time, beware that if rent decreases, any excess deposit should be returned to the tenant. Landlords can also charge a refundable holding deposit, not exceeding one week's rent.
• Utilities and outgoings: payments for, or in connection with, a utility (electricity, gas or other fuel, or water or sewerage), or towards energy efficiency improvements under a green deal plan are permitted, as long as the tenancy agreement requires it. Payments for council tax (to the council) and television licences (to the BBC), as well as payments for communication services (telephone, internet, or satellite television), are all also permitted where the tenancy agreement requires it.
• Interest: landlords can charge tenants interest on late payment of rent, provided the rent is at least two weeks overdue. Interest is capped at 3% over Bank of England base rate. Landlords can also recoup the reasonable costs of replacing lost keys or other security devices, but must supply evidence of costs incurred.
• Changes: tenants can also be charged for varying, novating or assigning tenancy agreements (capped at £50 in each case), or for early termination.

Rural quirks

Although many tenancy agreements will already contain provisions requiring the tenant to pay council tax and utilities, more tricky is the issue of private services, which are common on rural estates. Each case will need to be considered individually. Points to watch include:

1. Will the arrangement come under the definition of a 'utility'? Septic tanks will, as will private water supplies, but rainwater attenuation systems will not (at best they are drainage, but hopefully never sewerage).
2. In the past, rural tenancies sometimes required the tenant to contribute to the maintenance costs of a private access. This is no longer permitted under the TFA.
3. Recharging the cost of insurance is also prohibited.

What does the RRA change?

From May, the TFA will apply to any arrangement that is also caught by the RRA. The RRA also adds payments of rent in advance to the category of payments banned by the TFA. This means landlords can no longer ask for more than one month's rent in advance, nor ask for rent before the written tenancy agreement has been signed.

Less immediately obvious, is how the TFA interacts with the RRA's new rules regarding the content of written tenancy agreements. The regulations which govern this include provisions that, where a tenant is obliged to make a 'relevant bill payment' (broadly, a payment for a utility or outgoing permitted under the TFA) to the landlord, the tenancy agreement must include:

• a statement to that effect;
• a statement of whether it is payable as part of the rent or in addition to it; and
• where it is payable in addition to the rent:
  • each amount payable, or an explanation of how the tenant will be notified of the payment; and
  • when each payment is due, or an explanation of when and how the tenant will be notified of the due date.

The RRA comes with teeth. Landlords can be fined up to £7,000 for including banned fees in tenancy agreements after 1 May. Estates should, therefore, now be more careful than ever to ensure that any payment required from the tenant is both permitted by the TFA and recorded appropriately in the agreement.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, April 2026