What a landlord in England can charge a tenant: deposits, fees and penalties

acrenvo.com/guides/what-landlords-can-charge-tenants-england, last reviewed 25 October 2026

This guide covers letting in England. GOV.UK’s guidance, Fees you can charge as part of a tenancy, says so in as many words: “It applies in England only.” It lists the eight payments a landlord can ask a tenant for, and the one most landlords ask about first is the deposit: “You can require a tenancy deposit of up to 5 weeks’ rent for properties where the annual rent is below £50,000.” The guidance was last updated on 7 July 2026, and we read it again on 18 October 2026.

Priya is fictional. She lets a two-bedroom flat in Leeds, and her tenants of four years have just given notice. Before she advertises again she wants to be sure what she can ask the next tenants for: how much to take to hold the flat while she checks references, how big the deposit can be, and what she can charge later if the rent is late or the tenants want to change the agreement. She also has an older tenancy on another flat with a guarantor, and she has heard that agreements like that may need a second look.

The payments a landlord can charge

GOV.UK starts with a list. It says: “You can charge tenants or potential tenants the following payments in connection with a tenancy:”

• the rent if you and the tenant have signed the tenancy agreement
• a refundable tenancy deposit
• a refundable holding deposit to reserve a property
• a payment to change the tenancy when requested by the tenant
• a payment when the tenant does not give the correct amount of notice
• a payment towards utility bills, communication services and council tax
• a fee for late payment of rent
• a fee for replacing a key or security device

GOV.UK then adds: “You cannot charge your tenant any payment that is not on this list.” So before Priya adds any charge to the advert or the agreement, she checks that it is one of the eight payments above.

Rent before and at the start of the tenancy

The first change Priya notices is about timing. The guidance says: “From 1 May 2026, you cannot ask for a tenant to pay rent before the tenancy agreement is signed.” Once the agreement is signed, there is still a limit on how much rent she can take up front: “You can ask for a maximum of 1 month’s rent in advance after you and your tenant have signed the tenancy agreement and before the tenancy start date.”

Putting the rent up later is a separate process with its own notice and timetable, which the guide to rent increases under Section 13 explains.

The tenancy deposit

The limit on the deposit depends on the rent for the year. The guidance says: “You can require a tenancy deposit of up to 5 weeks’ rent for properties where the annual rent is below £50,000.” For more expensive lets it says: “For tenancies with an annual rent of between £50,000 and £100,000 you can require up to 6 weeks’ rent.”

Priya does not have to take a deposit at all, although taking one brings a duty with it. In GOV.UK’s words, “You do not have to take a tenancy deposit.” and “If you do take a deposit, you must protect it in a government approved scheme.”

The holding deposit

A holding deposit is the money Priya can take while she checks references, so that she is not showing the flat to other people in the meantime. The guidance says: “The maximum holding deposit you can ask for is equivalent to 1 week’s rent.” It also says: “You cannot accept more than one holding deposit per tenancy at a time.”

Priya’s next tenants are a couple, and the limit does not grow with the number of people. GOV.UK puts it this way: “The maximum deposit amount is per tenancy not the number of tenants.” It gives an example: “For example, if three potential tenants want to share a flat on the same tenancy agreement, they would pay a total of 1 week’s rent between them.”

There is a usual time limit as well: “The standard amount of time you can hold the deposit for is 15 calendar days after receiving it.” And if the let goes ahead, the money goes back: “If the tenant signs the tenancy agreement, you must refund the holding deposit.”

Fees during the tenancy

Changing the tenancy

If the tenants later ask to add or remove someone, Priya can charge for the work, within a limit. The guidance says: “Where a tenant requests a change to the tenancy agreement, for example, adding or removing a person, you can charge up to £50 for the work involved in updating the agreement.” It adds: “If the costs are higher, you should give evidence to a tenant that any fee charged above £50 is reasonable.”

When a tenant leaves without the right notice

The guidance says: “If your tenant does not give the correct amount of notice to end a tenancy, you can charge a fee.” That fee has a ceiling: “This cannot be more than the amount of rent that you would have received if the tenant gave the right amount of notice.”

Default fees, keys and late rent

Lost keys and late rent are both covered by what GOV.UK calls default fees, and both depend on the agreement. The guidance says: “You can charge the tenant a default fee if this is included in the tenancy agreement.” So if Priya wants to be able to charge either fee, the term needs to be in the agreement her tenants sign.

For keys, the guidance says: “You can charge the tenant the cost of replacing a key or other security device.” It goes on: “You must provide evidence in writing to the tenant to show the costs you have incurred are reasonable.”

For late rent, GOV.UK sets a rule rather than a fixed amount. It says: “Rent must be overdue by at least 2 weeks before you can charge a fee.” and “The maximum fee rate is 3 per cent above the Bank of England’s base rate.” It adds: “You can only charge a fee on the amount that is overdue.”

Because the base rate changes from time to time, the most Priya could charge changes with it, so this guide does not turn the rule into a figure. GOV.UK also asks landlords to use the fee with some judgement: “You should apply default fees on a case by case basis.”

Insurance, loans and services a tenant chooses

A landlord cannot make a tenant buy something as a condition of the tenancy. The guidance says: “It is also a prohibited payment if you require your tenant to take out a loan, pay for insurance or start a contract for a service.” The tenant can still choose to: “A tenant can use a loan, insurance or contract if they choose to.” GOV.UK gives three examples:

• a professional guarantor service
• a deposit replacement product
• an inventory service

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Guarantors

Priya can still ask for a guarantor. The guidance says: “You can ask a tenant to provide a suitable rent guarantor as a condition of granting the tenancy, in these circumstances, a tenant could choose to contract a professional guarantor service.”

Her older tenancy is the one to look at, because on 7 July 2026 GOV.UK added a note about guarantor agreements made before the reforms.

What happens if a landlord charges a fee that is not allowed

A fee outside the list is what GOV.UK calls a prohibited payment. The guidance says: “The local council can investigate you or your letting agent if you are reported for requiring a prohibited payment.” It goes on: “If the local council finds that you have required a prohibited payment they may issue a financial penalty.” On the amounts, it says: “For the first occasion the maximum penalty is up to £5,000.” For a repeat, it says: “If you have committed a second or subsequent breach within 5 years of a previous penalty, you can be taken to court or issued with a penalty of up to £30,000.”

It also says: “If you are prosecuted, the fine you would have to pay would be an unlimited amount.” And the tenant can ask for the money back: “Your tenant can also apply to the First-tier Tribunal who can order you to return the fee.”

What Priya can take from this

For the new let, Priya now knows the holding deposit and deposit limits, that rent can only be taken once the agreement is signed, and that any default fee has to be written into the agreement before she can charge it. For the older flat, she has a guarantor agreement to review. Where she is unsure about a particular charge, GOV.UK’s advice is this: “You should contact landlord advice services if you are not sure if the fee you are charging is allowed.”

The wider changes to letting in England, including the rules that changed on 1 May 2026, are explained in the Renters’ Rights Act guide for landlords. If GOV.UK changes its guidance on fees, this guide will change to follow it.

Questions landlords ask about tenant fees