A4.5 Rental Cost Reminders

Are Letting Agency Fees Charged in the UK?

TenShengMiao Answers: From 1st June 2019, the Tenant Fees Act 2019 in England and Wales prohibits letting agents and landlords from charging fees to tenants – meaning agency fees are banned. The law also stipulates that landlords or agents can only charge tenants the following:

1. Rent (Payment schedules –  yearly, half-yearly, or quarterly – can be negotiated depending on what your landlord or agent agrees to).

2. A refundable tenancy deposit, capped at no more than 5 weeks' rent (where the annual rent is £50,000 or less) or 6 weeks' rent (where the annual rent is over £50,000). This must be promptly placed into a government-approved deposit protection scheme.

3. A refundable holding deposit, to reserve a property, capped at no more than one week's rent.

4. Payments associated with early termination of the tenancy, when requested by the tenant.

5. Payments for varying, assigning, or novating the tenancy, capped at £50 (or reasonable costs incurred if higher).

6. Payments for utilities, communication services, TV licence, and Council Tax (if applicable and required under the tenancy).

7. Default fees for late payment of rent and charges for replacing lost keys or security devices.

TenShengMiao Reminder: If a landlord or agent charges any other fees beyond these 7 categories, they face significant fines and potential prosecution. Therefore, remember to assert your rights.

For letting agents outside England and Wales, it's common for them to charge the first month's rent as a fee, or around 10-15% of the total rent. This depends on the agent's pricing, though many now offer zero fees.

TenShengMiao Reminder: UK rents are typically advertised per week. Tenancies are often offered for 51 or 52 weeks, rarely calculated strictly by calendar month. You will see rents listed on property websites as PW (Per Week) or PCM (Per Calendar Month). You can sometimes negotiate the fee, asking for a discount or additional services, like having the agent negotiate a lower rent with the landlord.

What to do if a UK landlord or agent charges prohibited fees?

If an agent or landlord charges prohibited fees – for example, demanding payment for a checkout inspection or cleaning upon moving out, or other disallowed charges – you can take the following steps to assert your rights:

In these situations, refuse to pay. If they then prevent you from moving in, withhold your deposit, or make deductions because you refused, keep all relevant evidence. If you have already paid a prohibited fee to the landlord or agent:

1. Gather and keep a record of all related evidence.

2. Write an email or text formally requesting the landlord/agent ceases the charging behaviour and demands a refund of any prohibited fees already paid. If having phone or in-person conversations, make a clear recording.

3. If step 1 is unsuccessful, report them to their relevant Redress Scheme (see Note 1).

4. If step 2 is unsuccessful, contact your local council's Trading Standards or housing department.

5. If step 3 is unsuccessful, inform your university's International Office or Student Services to seek legal help. Most UK universities provide free legal support to their students.

6. With legal support from step 4, you can take the agent or landlord to the First-Tier Tribunal. This can be done via the official website: https://www.gov.uk/housing-tribunals

TenShengMiao Reminder: If you have successfully reclaimed a prohibited fee but the landlord or agent then tries to evict you out of retaliation, you can go through the steps above again, provided you are not at fault and have not breached the tenancy agreement.

Note 1: Redress Scheme: By law, all letting agents must be members of a government-approved Redress Scheme. Agents operating without membership risk having their licence revoked and facing fines.