Rules and regulations for tenants

Tenant Fees Act 2019 (England)

As of 1st June 2019, most letting fees charged to tenants in England are no longer allowed. However, a few specific payments are still permitted:

• Monthly rent

• A refundable tenancy deposit

• A refundable holding deposit (maximum of one week’s rent)*

• Charges for agreed changes to the tenancy

• Early termination fees (if requested by the tenant)

• Utility costs (electricity, gas, water), council tax, internet, TV licence

• Late payment fees for rent

• Costs to replace lost keys or security devices

* Holding deposits are used to reserve a property and come with specific terms and conditions.

Renting Homes (Fees etc.) (Wales) Act 2019

From 1st September 2019, new rules in Wales ban most fees for tenants (referred to as “contract-holders”). Only the following charges are allowed:

• Rent

• A refundable tenancy deposit

• A refundable holding deposit (up to one week’s rent)

• Bills for utilities, council tax, broadband, and other services

• Any default charges outlined in the agreement

Letting agents and landlords cannot require tenants to sign up for additional services or loans as part of the rental process.

Fifth Money Laundering Directive (5MLD)

Since 10th January 2020, the UK’s money laundering regulations apply to letting agents managing high-value rentals.

Any tenancy with monthly rent over £10,000 requires additional due diligence. Agents must:

• Confirm the identities and legal status of both landlord and tenant

• Verify that the tenancy is legitimate

• Monitor the arrangement throughout its duration to ensure compliance

If your tenancy falls under this category, be prepared for more detailed checks and documentation.

Questions or concerns?

Contact Armaani Estates — we’re here to make the rental process clear, fair, and fully compliant.