What can a letting agent legally charge me?
Fees to tenants are banned in England, Wales and Scotland, with a short list of permitted payments. Northern Ireland has no ban — but most agent fees there are void under a different rule.
- Difficulty
- beginner
- Time
- 10 min
- Read
- 5 min
Short answer
In England, Wales and Scotland an agent or landlord can only charge rent, a refundable deposit, a holding deposit where permitted, and a defined set of default and variation charges. Referencing, admin, inventory, renewal and credit check fees are unlawful and recoverable. Northern Ireland has no statutory ban, but a term making a tenant pay the landlord's agent's commission is void under land legislation, so most fees there can be reclaimed.
This is the change that saved renters the most money and is still the least known. Agents in England and Wales charged referencing and administration fees as a matter of course until 2019, and many renters still pay them because they do not know they are prohibited. In Northern Ireland the route is different and less well publicised, but the outcome for a tenant who asks for the money back is often the same.
Step by step
- England and Wales: know the short permitted list.Rent; a refundable tenancy deposit; a refundable holding deposit of up to one week's rent; payments for varying or assigning the agreement at the tenant's request, capped; payments on early termination; utilities, communication services, TV licence and council tax where the agreement provides; and default fees for a lost key or late rent, both limited.
- England and Wales: know what is banned.Referencing, credit checks, administration, inventory and check-out fees, renewal fees, guarantor fees, professional cleaning as a condition of the tenancy, and charges for a gas safety certificate or an EPC. If it is not on the permitted list it is prohibited.
- Scotland: know it has been banned for far longer.Premiums have been unlawful in Scotland since the Rent (Scotland) Act 1984, and legislation in 2012 made it explicit that a premium includes any service or administration fee or charge. Holding deposits are not lawful. Rent, a deposit of up to two months' rent, and rent in advance are the permitted payments.
- Northern Ireland: know there is no statutory ban.The Tenant Fees Act does not apply. However, a stipulation requiring the acquirer of land to pay the disposing party's agent's commission is void under the Commission on Disposal of Land (NI) Order 1986, and that has been applied to letting agent application fees. It binds agents rather than landlords letting directly.
- Ask for a breakdown in writing before paying anything.A list of what each payment is for, and under which heading it is permitted. Agents charging unlawful fees usually stop when asked to put the basis in writing.
- Reclaim what you have already paid.In England write to the agent asking for repayment within a stated period, then report it to trading standards, who can impose a financial penalty, and apply to the First-tier Tribunal for recovery. In Wales report it to Rent Smart Wales and the council. In Scotland use the First-tier Tribunal. In Northern Ireland the route is a small claims court application.
- Check the client money protection membership.Agents handling client money in England, Wales and Scotland must belong to a client money protection scheme and display membership. It is what gets your money back if the agent goes under holding your deposit or rent.
- Check the redress scheme.Letting agents in England and Wales must belong to The Property Ombudsman or the Property Redress Scheme, and tenants as well as landlords can complain to them. Scotland has a statutory letting agent code of practice enforced through the First-tier Tribunal.
- Watch for repackaged fees.A higher first month's rent, a compulsory 'tenant find' charge, a mandatory insurance product or an inflated default fee are all ways prohibited payments reappear. The test is what the payment is actually for, not what it is called.
Tips
- Ask for every payment to be itemised in writing before you transfer anything. It is the single most effective question in the whole process.
- Check the agent's client money protection and redress scheme memberships. Both should be displayed and both are your route if something goes wrong.
- Keep every receipt and bank reference. Recovery routes work long after the tenancy has ended.
Common mistakes
- Paying to secure a property under time pressure — Urgency is how prohibited fees survive. A prohibited payment does not become lawful because you were in a hurry, and it is recoverable afterwards.
- Assuming Northern Ireland has no protection — There is no ban, but tenant-facing agent commission is void under the 1986 Order, which means the money can be reclaimed even though nobody will fine the agent.
If it doesn't work
The agent is asking for a referencing fee
Cause: A prohibited payment in England, Wales and Scotland — Fix: Say in writing that you understand it to be a prohibited payment and ask on what basis it is charged. If they persist, report it to trading standards, or Rent Smart Wales, or the First-tier Tribunal in Scotland.
You paid fees before you knew
Cause: Widespread continuing practice — Fix: Write asking for repayment with a deadline. Keep the receipts and the tenancy paperwork. The enforcement routes above all work after the event, and in Northern Ireland the small claims limitation period is long.
The holding deposit was not returned
Cause: It must be repaid or applied to rent unless a defined exception applies — Fix: Ask which exception is relied on, in writing. Giving false information, failing a right to rent check where it applies, or withdrawing are the usual ones. Otherwise it is recoverable.
Questions people ask
Can I be charged for a reference?
Not in England, Wales or Scotland. Referencing and credit checks are a cost of doing business for the landlord. In Northern Ireland an agent charging one is very likely relying on a void stipulation.
Can I be charged a renewal fee?
No in England, Wales and Scotland. In England the point is now largely academic in the private sector because tenancies are periodic and there is nothing to renew.
Can they insist on professional cleaning at the end?
A requirement to pay for professional cleaning as a condition of the tenancy is a prohibited payment in England and Wales. A landlord can still charge from the deposit for cleaning genuinely needed to return the property to its check-in condition.
How much rent in advance can be required?
In England no more than one month, or twenty-eight days for shorter rental periods, and it cannot be required before the agreement is signed. In Scotland up to six months in advance is lawful where the period is specified. Wales and Northern Ireland do not cap it in the same way.