What Fees Can Landlords Charge UK 2026
The UK rental sector has undergone significant changes over recent years, with legislation increasingly focused on protecting tenants from excessive and unexpected charges. The introduction of the Tenant Fees Act dramatically altered the relationship between landlords, letting agents, and tenants by restricting many of the fees that were once routinely charged during the rental process.
As we move through 2026, landlords must remain fully aware of what fees they are legally permitted to charge and which charges are prohibited. Failure to comply can result in substantial financial penalties, legal disputes, and difficulties regaining possession of rental properties.
Understanding permitted payments is essential not only for landlords but also for tenants seeking clarity about their financial obligations. While many traditional fees have disappeared, landlords can still charge certain payments under specific circumstances, provided they comply with current legislation.
This article explains what fees landlords can legally charge in the UK in 2026, how the rules operate, and what both landlords and tenants should understand before entering into a tenancy agreement.
Table of Contents
Understanding the Tenant Fees Act
The Tenant Fees Act remains the primary legislation governing landlord and tenant charges in England. Introduced to reduce upfront costs for renters, the Act limits landlords and letting agents to a small number of permitted payments.
Before these regulations were introduced, tenants often faced numerous charges for referencing, administration, inventories, credit checks, and contract renewals. These additional costs could amount to hundreds of pounds before a tenant even moved into a property.
The legislation now prohibits most of these charges and clearly outlines the payments landlords can legally request. Any fee that falls outside the list of permitted payments is generally considered unlawful.
Landlords who breach these regulations may face enforcement action by local authorities and could be required to refund tenants. Repeat offences may result in significantly larger financial penalties.
Rent Remains the Primary Charge
Rent is, of course, the most significant payment landlords can charge. The tenancy agreement should clearly state the rent amount, payment schedule, and method of payment.
Setting Rent Levels
Landlords are generally free to set rental prices according to market conditions, location, property condition, and demand. However, rent increases during an existing tenancy must follow the correct legal procedures.
Avoiding Hidden Fees Through Rent Manipulation
The law prevents landlords from artificially lowering rent during the early months of a tenancy and then dramatically increasing it later to recover prohibited fees. Rental pricing structures must be transparent and genuine.
Tenants should always review tenancy agreements carefully to ensure rent arrangements are clear and consistent.
Tenancy Deposits and Deposit Limits
One of the most common permitted charges landlords can request is the tenancy deposit. A tenancy deposit acts as financial protection for landlords in situations where tenants cause damage to the property, fail to pay rent, leave outstanding bills that are their responsibility, or breach the terms of the tenancy agreement. It provides a level of security against potential financial losses that may arise during or at the end of a tenancy.
Deposit Caps in 2026
The maximum deposit landlords can generally request depends on the annual rent of the property:
These deposit caps continue to apply in 2026 and are intended to make renting more affordable by preventing tenants from facing excessive upfront costs when moving into a property. The restrictions also help create greater consistency across the private rental sector and ensure that deposits remain proportionate to the rent being charged.
Deposit Protection Requirements
Landlords are legally required to place tenancy deposits into an approved tenancy deposit protection (TDP) scheme within the prescribed timeframe after receiving the funds. The tenant must also be provided with the required prescribed information explaining where the deposit is protected and how the scheme operates.
Failure to protect a deposit correctly can have serious consequences. Landlords may face financial penalties, be ordered to compensate tenants, and may lose the ability to serve certain possession notices until the issue is resolved.
Proper deposit protection not only ensures legal compliance but also helps reduce disputes by providing an independent process for resolving disagreements over deposit deductions at the end of the tenancy.
Holding Deposits Explained
A holding deposit is another payment that landlords and letting agents can legally request from prospective tenants. This payment is designed to reserve a property while referencing checks, affordability assessments, and tenancy preparations are completed. By paying a holding deposit, a prospective tenant demonstrates a genuine intention to proceed with the tenancy, while the landlord agrees to temporarily remove the property from the market and pause viewings for other applicants.
Maximum Holding Deposit
Under current regulations, the maximum holding deposit that can be requested is limited to the equivalent of one week's rent. This restriction helps prevent excessive upfront costs for tenants while still providing landlords with a level of assurance that applicants are serious about renting the property.
The holding deposit is usually credited towards the tenant’s first rent payment or tenancy deposit once the tenancy agreement is signed. In most cases, the money should either be returned or applied to the tenancy unless specific circumstances allow the landlord to retain it.
When Can a Holding Deposit Be Retained?
There are certain situations where a landlord may be legally entitled to keep a holding deposit. For example, if a prospective tenant provides false or misleading information during the referencing process, fails a Right to Rent check, or decides not to proceed with the tenancy without a valid reason, the landlord may be permitted to retain the deposit.
Similarly, if the tenant fails to take reasonable steps to enter into the tenancy agreement within the agreed timeframe, the landlord may have grounds for withholding the payment. However, landlords cannot keep a holding deposit simply because they change their mind or decide to let the property to someone else.
Charges for Tenant Default
Although many fees are prohibited, landlords can still charge tenants for specific defaults under the tenancy agreement.
Late Rent Payments
If rent remains unpaid for a specified period, landlords may charge interest on overdue amounts. The interest charged is generally linked to the Bank of England base rate and must comply with legal limits.
Lost Keys and Security Devices
Where tenants lose keys, fobs, access cards, or security devices, landlords can usually recover the reasonable replacement cost.
The amount charged must reflect the actual expense incurred rather than serving as a penalty or profit-generating fee.Landlords should keep evidence of replacement costs in case disputes arise.
Changes to Tenancy Agreements
Certain charges relating to tenancy amendments remain permitted under specific circumstances.
Tenant-Requested Changes
If a tenant asks to alter the tenancy agreement after it has been signed, landlords may charge a fee to cover administrative costs.
Examples include:
Adding a new tenant
Removing a tenant
Changing tenancy terms
Amending contractual arrangements
Fee Limits
The maximum charge is typically £50 unless the landlord can demonstrate that higher reasonable costs were incurred. Documentation supporting any higher charge should be retained for transparency and compliance.
Early Termination Fees
Sometimes tenants wish to leave a property before the tenancy agreement ends. In these situations, landlords may recover reasonable costs associated with ending the tenancy early.
Calculating Reasonable Costs
Landlords cannot simply impose arbitrary penalties. Charges must reflect genuine losses incurred because of the tenant's request.
Potential costs may include:
Marketing expenses
Referencing fees paid to third parties
Administrative work
Lost rent during re-letting periods
The amount charged should be proportionate and supported by evidence where necessary.
Negotiated Agreements
Many early tenancy terminations involve negotiation between landlord and tenant to reach a mutually acceptable outcome.
Utility Bills, Council Tax, and Other Payments
Tenancy agreements often specify which household expenses tenants must pay separately from rent.
Utility Costs
Tenants may remain responsible for:
Electricity
Gas
Water charges
Broadband services
Television licences
Responsibility depends on the tenancy agreement and property setup.
Council Tax
In most circumstances, tenants are responsible for paying council tax directly to the local authority during their occupation. However, exceptions may apply to certain types of accommodation, such as Houses in Multiple Occupation (HMOs).
Other Permitted Payments
Landlords may also recover payments related to utilities or communication services where these responsibilities are clearly stated in the tenancy agreement.
Fees Landlords Cannot Charge in 2026
Understanding prohibited fees is equally important. The following charges generally remain banned:
Attempting to charge these fees may expose landlords to enforcement action and financial penalties. Landlords should ensure tenancy agreements, marketing materials, and payment requests fully comply with current legislation.
Compliance and Best Practice for Landlords
Maintaining compliance with fee regulations requires careful administration and record keeping.
Landlords should provide clear tenancy agreements, explain all charges in writing, and retain documentation supporting any permitted fees. Transparency reduces disputes and helps build positive landlord-tenant relationships.
Professional property management systems can also assist landlords in ensuring compliance with changing regulations.
As rental legislation continues to evolve, staying informed about legal obligations remains essential for successful property management.
Conclusion
In 2026, UK landlords operate within a much more regulated fee structure than existed a decade ago. Most traditional tenant charges have been abolished, leaving only a limited range of permitted payments such as rent, tenancy deposits, holding deposits, certain default charges, tenancy amendments, and reasonable early termination costs.
These rules aim to create greater fairness and transparency within the rental market while protecting tenants from unexpected expenses. For landlords, understanding exactly what can and cannot be charged is crucial for maintaining compliance and avoiding costly penalties.
By following current legislation, documenting charges carefully, and communicating openly with tenants, landlords can manage their properties effectively while remaining fully compliant with UK rental regulations.
Want to stay compliant with the latest UK landlord fee rules? Speak to Armaani Estates today.
FAQs
Can landlords charge administration fees in the UK in 2026?
No. Administration fees remain prohibited under current tenant fee legislation.
Can a landlord charge for referencing checks?
No. Referencing and credit check fees cannot be passed on to tenants.
What is the maximum tenancy deposit a landlord can charge?
For most tenancies, the maximum deposit is five weeks' rent, although six weeks' rent may apply to higher-value properties.
Can landlords charge for lost keys?
Yes. Landlords can usually recover the reasonable cost of replacing lost keys, fobs, or security devices.
Are holding deposits legal?
Yes. Holding deposits are permitted but are generally limited to one week's rent.
Can landlords charge tenants for ending a tenancy early?
Yes. Reasonable costs associated with early termination may be recoverable if the tenant requests to leave before the agreed end date.
Are tenants responsible for utility bills?
Usually yes, although responsibility depends on the tenancy agreement and property type.
What happens if a landlord charges a prohibited fee?
The landlord may be required to refund the fee and could face financial penalties imposed by local authorities.
