Letting Agent Fees | Tenant Fees Act: The Position in 2026
Letting agent fees | Tenant Fees Act is a legal framework that restricts the charges landlords and letting agents can levy on tenants for services related to tenancy agreements, thereby aiming to curb unfair practices. This act has been key since its inception in 2019 but saw significant changes with the Renters' Rights Act (RRA) of 2025, which further streamlined regulations protecting tenant rights.
The Tenant Fees Act significantly altered the situation for private renters by banning most fees charged by letting agents and landlords. Key provisions include restrictions on refundable holding deposits, tenancy agreement amendments, and early termination charges. The RRA 2025 extended these protections even further. Abolishing Section 21 notices and ensuring periodic tenancies start immediately from the first day of occupancy.
In 2026, the Tenant Fees Act remains a cornerstone in tenant protection legislation, while the Renters' Rights Act continues to evolve with new regulations aimed at building fairer rental practices. This article covers these legal changes, detailing their implications for both tenants and landlords, and providing practical guidance on dealing with any issues that may arise.
What the Law Says
The Tenant Fees Act 2019, which came into force in England to address unfair letting agent fees, is codified under several key statutes. The Housing Act 1988 (sections 8, 13, and 21) governs tenancy agreements, notices, and the right of landlords to regain possession. The Landlord and Tenant Act 1985 (section 11) addresses repair obligations for private sector rented accommodation.
The Deregulation Act 2015 introduced significant changes by abolishing assured shorthold tenancies' notice periods for no-fault evictions, which was later restricted under the Tenant Fees Act. The Housing Act 2004 (sections 213-215) deals with landlord and agent responsibilities concerning property management.
The core of the Tenant Fees Act is to prohibit landlords and letting agents from charging fees beyond specific permitted categories. These include rent, refundable tenancy deposits (capped at five weeks' rent for lower value properties), holding deposits, charges for amending agreements as requested by tenants, and costs related to early termination. Any fees outside these defined categories are illegal under the Act.
How the Renters' Rights Act 2025 Changes This
The Renters' Rights Act (RRA) of 2025 introduced sweeping reforms that significantly altered the dynamics between landlords, letting agents, and tenants in England. At Letting agent fees | Tenant Fees Act, key provisions include:
- Abolition of Section 21 Notices: The RRA eliminated the use of Section 21 notices for no-fault evictions, which had allowed landlords to end tenancies without cause if certain conditions were met.
- Periodic Tenancies from Day One: Landlords are now expected to provide a periodic tenancy agreement starting on the first day of occupancy rather than requiring tenants to wait until after an initial fixed term.
- Annual Rent Cap via Section 13: The Act introduced a cap on rent increases, ensuring that landlords can't raise rents beyond a certain percentage annually without justifiable reasons such as improvements or market conditions.
- Decent Homes Standard Extended to PRS: The RRA expanded the Decent Homes Standard to cover private rented sector properties, mandating landlords to maintain their properties in a good state of repair and structural condition.
- Awaab's Law Extended to Private Landlords: This provision ensures that all landlords are legally responsible for ensuring living conditions meet health and safety standards, aligning closely with the tragic case of Awaab Ishak who died due to mould issues in his rented home.
- New PRS Ombudsman: The Act established a new ombudsman specifically for disputes within the private rental sector, providing an independent body to resolve conflicts between tenants and landlords.
- PRS Database Registration: Landlords must register their properties on a central database, enhancing transparency and accountability in property management practices.
These changes collectively aim to create a more equitable and regulated environment for renters across England.
What This Means for Tenants
Under the Tenant Fees Act and subsequent RRA 2025 amendments, tenants are entitled to substantial protections against excessive charges and unfair eviction practices. Here's what tenants can expect:
- Banned Fees: Landlords and agents can't charge fees outside those permitted by law, such as rent and refundable deposits.
- Section 21 Notice Prohibition: Tenants no longer face the threat of immediate eviction through Section 21 notices, unless specific conditions like arrears are met.
- Fixed Periodic Tenancies: Tenancy agreements automatically convert to periodic tenancies from day one, offering more stability and protection against sudden rent hikes or unfair evictions.
- Rent Cap Compliance: Rent increases must adhere to annual caps, preventing landlords from imposing arbitrary price hikes.
Tenants should familiarise themselves with these rights and ensure they're receiving fair treatment. At Letting agent fees | Tenant Fees Act, if faced with illegal fees or threats of eviction without just cause, tenants may lodge formal complaints or seek legal advice to enforce their rights.
What This Means for Landlords
For landlords, compliance with the Tenant Fees Act and RRA 2025 is important in avoiding legal repercussions and maintaining a positive reputation:
- Fee Compliance: Landlords must strictly adhere to permitted fee structures, avoiding illegal charges such as unfair exit fees or excessive administration costs.
- Eviction Procedures: Evicting tenants now requires justifiable grounds beyond the previous no-fault Section 21 notice process. Landlords need to follow proper procedures and provide adequate reasons for terminating tenancies.
- Property Maintenance Standards: Ensuring properties meet the Decent Homes Standard is mandatory, reducing risk of health and safety complaints.
- Rent Increase Limitations: Rent increases must be reasonable and justified, in line with statutory caps and market conditions.
Failure to comply can result in financial penalties or legal disputes, highlighting the importance of adherence to these regulations for landlords.
Common Scenarios
Scenario 1: Overcharged Fees
Situation: A tenant is charged a £250 key deposit when moving into a new flat. Upon researching their rights under the Tenant Fees Act and RRA 2025, they realise this fee is prohibited.
Action: The tenant should request a refund of the illegal charge from the landlord or letting agent.
Scenario 2: Threatened Eviction
Situation: A tenant receives a Section 21 notice after three months in their rented home. Letting agent fees | Tenant Fees Act has no arrears and aren't breaching any tenancy conditions.
Action: The tenant should challenge the legality of this notice, as Section 21 has been abolished for most properties.
Scenario 3: Unreasonable Rent Hike
Situation: A landlord attempts to increase rent by 30% at renewal despite no substantial property improvements or changes in market rates.
Action: The tenant may challenge the proposed rent rise through local council intervention or dispute resolution mechanisms, given statutory rent caps.
Evidence Tenants Should Keep
Tenants should carefully document any financial transactions and communications related to their tenancy. important evidence includes:
- Receipts and Invoices: For all payments made during the tenancy, ensuring no illegal fees are charged.
- Email Correspondence: With landlords or letting agents regarding terms of the agreement, maintenance requests, rent increases, etc.
- Photographs and Videos: Of property conditions at move-in, repairs needed, and any health hazards like mould.
- Letters and Contracts: Original tenancy agreements, renewal documents, and formal complaints sent to resolve issues.
These records serve as critical evidence in case of disputes over fees or living conditions. Tenants should also keep dated notes detailing specific instances where rights may have been violated, providing a clear timeline for any legal action required.
What to Do if Things Go Wrong
If tenants encounter problems such as illegal fees or unfair eviction notices, the following steps can help resolve issues:
- Complaint Letter: Send a formal complaint to the landlord or letting agent detailing the issue and requesting rectification.
- Council Environmental Health: Report any health hazards like mould or lack of basic amenities to the local council for enforcement.
- Deposit Scheme Dispute: If disputes arise over the deposit, contact the relevant tenancy deposit protection scheme (such as TDS) for mediation.
- Housing Ombudsman: File a complaint with the Housing Ombudsman if local resolutions fail, seeking independent review of landlord actions.
- PRS Ombudsman: For disputes related to private rental sector practices beyond health and safety issues.
- At Letting agent fees | Tenant Fees Act, First-Tier Tribunal: Seek legal remedy through the First-tier Tribunal (Property Chamber) for more serious breaches of tenancy agreements or illegal evictions.
- County Court: Pursue judicial intervention in severe cases where all other avenues have been exhausted, ensuring rights are protected legally.
Each step builds upon the last, providing tenants with a structured approach to addressing and resolving rental disputes effectively.
Common Mistakes to Avoid
Both tenants and landlords should avoid common pitfalls that can lead to legal complications:
- Overlooking Statutory Fees: Landlords mistakenly charging fees outside permitted categories such as holding deposits or rent.
- Ignoring Compliance Deadlines: Failing to adhere to annual rent cap limits or proper eviction procedures under the RRA 2025.
- Lack of Documentation: Tenants not keeping thorough records can hinder evidence-based disputes over illegal charges or property conditions.
- Misinterpreting Health Standards: Landlords neglecting maintenance responsibilities leading to health and safety violations, risking legal action.
Avoid these errors by staying informed about current regulations and maintaining careful documentation. Regular consultations with housing experts or solicitors may further mitigate risks.
Where to Get Help
For full assistance on tenant rights and disputes, consider reaching out to organisations like Shelter (shelter.org.uk) or Citizens Advice (citizensadvice.org.uk). Local council housing teams also offer valuable support tailored to specific regional regulations. Legal aid remains available for certain low-income tenants seeking professional representation in tenancy issues.
These resources provide important guidance and advocacy to ensure tenant rights are upheld and any disputes are resolved fairly under the Tenant Fees Act and Renters' Rights Act 2025.