Prohibited letting agent fees

Short answer:

For most residential assured shorthold tenancies, licences and lodger arrangements in England, no. Booking fees, administration fees, referencing fees, “portal” or account set-up fees, and guarantor fees are prohibited payments under the Tenant Fees Act 2019. A letting agent cannot lawfully require you to pay them.

Legal position:

The Tenant Fees Act 2019 bans landlords and letting agents from charging tenants (and their guarantors and others acting for the tenant) anything other than a limited list of permitted payments in connection with a tenancy in England. The ban applies to assured shorthold tenancies, tenancies of student accommodation and licences to occupy housing. It has applied to all such tenancies (including those that pre-dated the Act) since 1 June 2020.

Anything not on the permitted list is a prohibited payment. The only payments an agent or landlord may lawfully require are broadly:

1. The rent.
2. A refundable tenancy deposit, capped at five weeks’ rent where the annual rent is under £50,000 (six weeks where it is £50,000 or more).
3. A refundable holding deposit, capped at one week’s rent.
4. Payments to change the tenancy when requested by the tenant, capped at £50 (or reasonable costs if higher and evidenced).
5. Payments on early termination when requested by the tenant.
6. Certain default charges, such as reasonable costs for lost keys or interest on late rent.
7. Payments for council tax, utilities, communication services and a TV licence.

How this applies to the specific fees you mention:

Booking fee: This is not a permitted payment. If an agent wants an up-front payment to reserve a property, the only lawful mechanism is a holding deposit of no more than one week’s rent, which is subject to strict rules on how and when it must be repaid or applied to rent or deposit. A “booking fee” dressed up as something else is still prohibited.

Administration fee: Prohibited. Agents used to charge these routinely before June 2019, but they are now banned. This includes admin charges bundled into set-up.

Referencing and credit check fees: Prohibited. The cost of referencing and credit checks cannot be passed to the tenant or guarantor.

Portal or account set-up fee: A charge simply for using an online platform, tenant portal or for setting up an account is not on the permitted list and is prohibited.

Guarantor fee: Prohibited. An agent or landlord may require you to provide a suitable guarantor as a condition of the tenancy, but they cannot charge you or the guarantor a fee for arranging, referencing or administering the guarantor.

Important exceptions and points to check:

The ban applies to England. Different rules apply in Wales under the Renting Homes (Fees etc.) (Wales) Act 2019, though the position on these fees is broadly similar.

The Act covers residential tenancies and licences of housing. It does not cover genuine business or company lets, or certain long leases. If, unusually, your agreement is a company let or a genuine business tenancy, the fee ban may not apply. For ordinary private renting this exception will rarely be relevant.

A holding deposit is legitimate, but it is not a “fee”. It must be capped at one week’s rent, and it must be repaid or set against the rent or deposit unless you fail a right to rent check, provide false or misleading information, withdraw, or fail to take reasonable steps to enter the tenancy. If an agent labels a non-refundable payment as a “booking fee” to avoid these rules, that is unlawful.

Remedies if you have been charged an unlawful fee:

1. Ask for it back in writing. Send a short, dated written request to the agent stating that the charge is a prohibited payment under the Tenant Fees Act 2019 and asking for a refund within a set period, for example 14 days. Keep the receipt or bank record showing what you paid.

2. Report to trading standards. Enforcement of the Act is by the local weights and measures authority (trading standards) at the district or county council for the area where the property is. They can impose a financial penalty of up to £5,000 for a first breach, and up to £30,000 (or prosecution) for a repeat breach within five years.

3. Recover the money. You can apply to the First-tier Tribunal (Property Chamber) to recover a prohibited payment. Trading standards can also help you recover it.

4. Practical leverage on eviction. A landlord cannot serve a valid section 21 notice while unlawfully retained prohibited payments (or an unlawfully retained holding deposit) remain unpaid back to the tenant. This is a significant practical point if you are worried about being asked to leave.

Practical next steps:

1. Identify exactly what you were charged, when, and how it was described on any invoice, tenancy agreement or email. Gather the documents and payment evidence.

2. Write to the agent quoting the Tenant Fees Act 2019 and requesting a refund of any prohibited payment. A calm, factual letter often produces a refund quickly, because agents know the penalties.

3. If they refuse or ignore you, report the matter to the local council’s trading standards team and consider a claim to the First-tier Tribunal (Property Chamber) to recover the sum.

4. Check whether the payment was in fact a lawful holding deposit or deposit rather than a fee, because that changes the analysis and the correct route.

What could change the answer:

The analysis assumes an ordinary residential letting of housing in England, entered into or continuing on or after 1 June 2020. If your agreement is a company let, a genuine business tenancy, or a long lease, or if the payment is properly a capped holding deposit or tenancy deposit rather than a fee, the outcome may differ. The precise wording used by the agent and what the payment was said to be for will matter, so keep all the paperwork.