What it looks like
In many UK rentals, the problem shows up as a sudden request for money that does not feel like rent or a deposit. A letting agent might ask for an “admin fee”, “referencing fee”, “inventory fee”, “renewal fee”, “check-out fee”, or a charge for providing a copy of the tenancy agreement. Sometimes it arrives as a text message the day before move-in, or an email with a payment link and a warning that keys will not be released until it is paid.
Common patterns include fees being described as “standard”, being added after a holding deposit has already been taken, or being framed as optional while the tenant is told the tenancy cannot proceed without it. Another typical situation is a renewal: the fixed term ends, the tenant wants to stay, and a fee appears for “paperwork” even though nothing changes except dates.
Tenants often only realise something is wrong when comparing notes with friends, seeing a social media post about the Tenant Fees Act, or noticing that the fee is not listed in the tenancy agreement but is still being demanded. In shared houses, one person may be pressured to pay quickly “to secure the room”, then later struggles to recover the money.
Fees that are usually banned
In England, most upfront and mid-tenancy charges to tenants are banned unless they fall into a small set of permitted payments. The banned list commonly includes referencing, credit checks, guarantor checks, admin, inventory, check-in, check-out, renewal, and “tenancy set-up” fees. If the charge is not rent, a tenancy deposit, a holding deposit, or another permitted payment, it is often unlawful.
Permitted payments are limited and tend to be tightly defined. Typical permitted examples include: rent; a refundable tenancy deposit (capped); a refundable holding deposit (capped); certain default fees (only if written into the tenancy and reasonable, such as a late rent charge after a set period); and payments for changing the tenancy at the tenant’s request (capped unless the landlord’s genuine costs are higher and evidenced). Charges for professional cleaning are generally not allowed as a fixed requirement, although tenants can still be expected to return the property in the same condition as at move-in (fair wear and tear aside).
Wales has similar rules under separate legislation. Scotland and Northern Ireland have different regimes again. If the property is in England and the fee looks like an admin or process charge, it is commonly banned.
Likely causes behind the demand
Reuse old templates
Many unlawful fees come from outdated email templates or legacy “fee schedules” that were never removed after the rules changed. The person sending the request may not be the person who set up the process, so it keeps happening until challenged.
Mislabel the charge
Some demands are the same banned fee with a new name: “compliance fee”, “move-in contribution”, “document fee”, or “key release fee”. Renaming does not make it permitted.
Bundle into rent
Another pattern is a fee being described as “rent top-up for the first month” or “non-refundable deposit”. If it is really a one-off charge for admin or set-up, it may still be unlawful even if presented as rent.
Charge for repairs
Tenants are sometimes billed for maintenance that is not their responsibility, then told it is a “call-out fee” or “management fee”. If the issue is wear and tear or a landlord repair, the charge is usually disputed. If the property has disrepair problems, it can help to keep the issues separate from the fee dispute and log them properly; see Mould and damp in rented property — tenant rights for evidence tips that often apply to other repair disputes too.
Step-by-step checks and fixes
Identify the fee type
Write down exactly what is being requested, the amount, and what it is said to cover. Save screenshots of texts, emails, and payment links. If the demand is verbal, follow up with an email summarising what was said and when.
Check the tenancy paperwork
Look at the tenancy agreement, any “welcome pack”, and the holding deposit terms. Check whether the fee is mentioned, and whether it is described as refundable or non-refundable. Even if it is written in, a banned fee is still likely unenforceable, but the wording helps show what is being attempted.
Compare against permitted payments
Ask: is this rent, a capped deposit, a holding deposit, a genuine tenant-requested change, or a clearly defined default fee? If not, it is commonly a prohibited payment. If it is a default fee, check whether it is in the tenancy agreement and whether the amount looks reasonable and linked to actual cost.
Request a written breakdown
Send a short email asking for: (a) the legal basis for the charge, (b) the clause relied on, and (c) an itemised breakdown of costs. In many UK cases, the demand softens once a written explanation is required.
Refuse payment calmly
If the fee appears banned, respond in writing that it will not be paid because it is not a permitted payment, and ask for confirmation that the tenancy will proceed without it. Keep the tone factual and avoid long arguments. If keys are being withheld, ask them to confirm in writing that access is being refused solely due to the disputed fee.
Pay only if trapped
Sometimes the move is imminent, belongings are in a van, or a child’s school start date is close. If payment is made to avoid immediate harm, keep evidence that it was paid under protest: note “paid under protest / disputed fee” in the payment reference if possible, and email straight after confirming the payment was made to secure access and will be reclaimed.
Ask for repayment
Request repayment in writing with a deadline (for example, 7–14 days). Attach proof of payment and restate why it is prohibited. Ask where the money is held and who authorised the charge (agent, landlord, or both). In practice, repayment is more likely when the request is specific, evidenced, and time-limited.
Escalate to redress schemes
Letting agents in England must belong to a government-approved redress scheme. If the agent refuses to refund, raise a formal complaint using the agent’s complaints process, then escalate to the redress scheme if unresolved. Keep a timeline: date demanded, date paid (if paid), and each response.
Consider council enforcement
Local councils can enforce tenant fee rules and may issue penalties. Reports are more effective when they include the demand message, invoice, receipt, and the tenancy address. If the agent is repeatedly charging fees, councils tend to be more interested than in a one-off misunderstanding.
What happens if it’s ignored
If a banned fee demand is ignored, the most common immediate risk is pressure tactics: repeated chasers, threats that the tenancy will not proceed, or delays in repairs or paperwork. Some tenants pay just to stop the hassle, then struggle to recover the money later because evidence is thin or the payment is mixed in with other sums.
Where a landlord or agent relies on prohibited payments, it can also affect their ability to serve certain notices in England until the money is repaid. That does not stop all action, and it does not remove the need to deal with rent and tenancy obligations, but it can be a useful point in negotiations when handled carefully and evidenced.
Another common outcome is relationship breakdown with the agent, leading to slow responses on other issues. If communication becomes hostile or threats appear, it can help to keep everything in writing and separate the fee dispute from day-to-day tenancy matters. If threats of eviction are being used to force payment, see Landlord threatening eviction for practical evidence steps.
When to escalate and what helps
Gather a clean evidence pack
Useful evidence usually includes: the fee demand (email/text), any invoice, the tenancy agreement, holding deposit terms, proof of payment, bank statement line, and a short timeline. Add notes of phone calls with date/time and who spoke.
Use a formal complaint route
Send a complaint to the agent’s published complaints address. Ask for a final response letter. If the agent is unhelpful or keeps deflecting, it often helps to be specific about the remedy: refund amount, date paid, and confirmation that no further prohibited fees will be requested.
Escalate to redress or council
If the agent is in a redress scheme, escalate once the internal process is exhausted. If the issue looks systemic (multiple tenants charged, standard fee schedule, repeated demands), report to the local council’s trading standards or housing enforcement team with the evidence pack.
Prepare for small claims
If repayment is refused, a small claim may be considered for recovery. Before that stage, a clear letter before action with the evidence attached often prompts settlement. Keep the claim focused on the prohibited payment and avoid bundling unrelated grievances unless advised.
FAQ
Is a referencing fee ever allowed?
In England, referencing and admin fees charged to tenants are usually prohibited. Referencing costs are generally treated as the landlord/agent’s business cost.
Can an agent charge for renewing?
Renewal fees to tenants are commonly banned. A new fixed term can be agreed without a tenant-paid admin charge.
What about changing a name?
If the tenant requests a change (for example, replacing a sharer), a fee may be permitted but is usually capped and should reflect genuine costs. Ask for an itemised breakdown.
Can keys be withheld?
Keys are sometimes withheld as leverage. Ask for written confirmation of the reason and keep evidence. If the tenancy has started and rent is due, withholding access can create wider legal issues.
Does it apply to student lets?
Most standard assured shorthold tenancies in England are covered, including many student rentals. Purpose-built student accommodation can differ depending on the agreement type.
What if the landlord, not agent,…
The rules can apply to landlords as well. Keep evidence of who demanded the payment and where it was paid.
Before you move on
Save the fee demand and proof of payment (if paid), then send one written message asking for the legal basis and a refund deadline; if there is no clear permitted category, start the agent’s formal complaints process the same day.
If you felt pushed to pay quickly or told there was no time, that’s often a sign the process wasn’t handled properly.
Get help with the next step
If the fee demand is ongoing or repayment is being refused, share the messages, tenancy paperwork, and payment proof via https://ukfixguide.com/contact/ for help setting out the next escalation step.
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