8 minute read
Key points
- Only the payments on the Tenant Fees Act list are allowed. Everything else is banned.
- A holding deposit is capped at one week's rent for the whole property, and one at a time.
- Late rent interest needs a clause in the agreement and cannot start until rent is 14 days late.
- Banned fees include admin, referencing, credit checks, inventories, cleaning and pet fees.
- A banned payment can mean a penalty of up to £5,000 and repayment to the tenant.
This guide is for Tameside landlords, whether you let a house in Stalybridge, a flat in Ashton-under-Lyne or rooms in Hyde. The Tenant Fees Act is national, so it applies the same across Tameside, and it binds your letting agent as well as you.
What does the Tenant Fees Act allow a landlord to charge?
The Tenant Fees Act 2019 answers the question "what can a landlord charge?" with a short list. If a payment is not on the list, you cannot ask for it. That applies to landlords and to the letting agents acting for them, and it covers every assured periodic tenancy, including each room let separately in a house share.
This is a summary, not legal advice, and is correct as of 28 October 2026. Read the GOV.UK statutory guidance for the detail.
Permitted payments and their limits at a glance
| Payment | The limit |
|---|---|
| Rent | Level rent only. Nothing before both sides sign. Between signing and the start, no more than one month (or 28 days). |
| Tenancy deposit | Five weeks' rent under £50,000 a year, six weeks at £50,000 or more. Must be protected. |
| Holding deposit | No more than one week's rent for the whole property. One at a time. |
| Late rent interest | Only if the agreement says so, only from 14 days late, no more than 3% above the Bank of England base rate. |
| Lost keys | The reasonable, evidenced cost, and only if the agreement allows it. |
| Change the tenant asks for | £50, or the evidenced higher reasonable cost. A change of sharer is one example. |
| Early termination the tenant asks for | No more than the rent for the correct notice period, two months at most. |
| Utilities, communications, council tax, TV licence | Only where the agreement makes the tenant responsible, with no profit added. |
Anything else is banned. Our deposit protection guide covers what happens to the deposit once you hold it.
How does a holding deposit work? A worked example
A holding deposit lets an applicant reserve a property while you do your checks. You can take no more than one week's rent for the whole property, and only one holding deposit at a time. Give the conditions in writing before the money is paid.
Worked example
Assume the rent is £850 a month. One week's rent is 850 x 12 / 52 = £196.15, so that is the most you can ask for. The applicant pays it on Tuesday 3 November 2026. The signing deadline is 15 days unless you agree a different date in writing. We count 15 days from the day after payment, which gives Wednesday 18 November 2026, and we write that date down.
- The tenancy is signed on 10 November. Refund the £196.15 within 7 days, or apply it to the deposit or first month's rent if the tenant agrees.
- You pull out. Refund within 7 days.
- 18 November passes with no signing. Refund within 7 days, which is by 25 November, unless one of the reasons below lets you keep it.
When you can keep a holding deposit
You can keep it only if the applicant fails the Right to Rent check, gives materially false or misleading information, withdraws, or fails to take all reasonable steps to sign by the deadline. If you keep it, give the applicant your written reasons within 7 days.
What is the deposit cap for a tenancy deposit?
The deposit cap is set by annual rent. For £900 a month, the annual rent is 900 x 12 = £10,800, one week is 10,800 / 52 = £207.69 and five weeks is £1,038.46. At £50,000 a year or more, six weeks applies.
North Point takes two weeks' rent for a room and five weeks' rent for a home. The full rules on protecting a deposit are in our tenancy deposit protection guide.
Can you charge interest on late rent?
Yes, but only if the tenancy agreement says so. Interest can only be charged once rent is 14 days late, and it cannot be more than 3 percentage points above the Bank of England base rate. A flat "late payment fee" is not on the permitted list, so it is not allowed.
Worked example with an assumed base rate
The base rate changes, so check the current rate before you use this. For illustration only, assume it is 4%. The most you could charge is 4% + 3% = 7% a year. Assume rent of £800 is unpaid for 30 days and you count interest only for the 16 days after the first 14.
Interest for a year would be 800 x 7% = £56, which is £0.15 a day (56 / 365). For 16 days that is about £2.45. Late rent interest is small money. Its value is as a reason to pay on time, not as income.
Banned fees: what can a landlord not charge?
- Administration fees of any kind.
- Referencing and credit checks.
- Inventory, check in and check out fees.
- Cleaning fees.
- Fees for renewing a tenancy or reletting.
- Insurance recharges.
- Pet deposits, pet fees and pet rent. A tenant can ask to keep a pet and you cannot unreasonably refuse.
- Reservation fees. Only a holding deposit within the limits above is allowed.
- Your own legal costs, unless a court awards them.
A bigger first month's rent is also a prohibited payment, because rent must be level.
What are the penalties for charging a banned fee?
A prohibited payment can bring a penalty of up to £5,000 per payment. A repeat within five years can mean a penalty of up to £30,000 or a prosecution. You can also be ordered to repay the money, and tenants can recover banned fees at the First-tier Tribunal.
An illustration: a landlord charges four sharers in a house share a £120 "admin fee" each. That is four prohibited payments, so up to 4 x £5,000 = £20,000 in penalties, plus repaying 4 x £120 = £480.
What must a letting agent publish about fees?
Letting agents must publish all of their fees, inclusive of tax, at their office and on their website. The fees must be linked from third party adverts, along with details of the agent's redress scheme. Not doing so can bring a penalty of up to £5,000 under section 83 of the Consumer Rights Act 2015.
Common tenant fee mistakes
- Keeping a holding deposit without written reasons. You must give them within 7 days.
- A second holding deposit while another is held.
- A late payment fee instead of interest.
- Charging for a credit check because the agent does it.
- Invoicing a larger first month. Rent must be level.
- Profit on bills. Pass on the actual cost only.
How North Point handles tenant fees for Tameside landlords
We charge tenants nothing beyond rent and a deposit: two weeks' rent for a room and five weeks' for a home. If we reserve a room before signing, it is only by a holding deposit within the limits above. We publish every fee we charge landlords, so there is nothing to find later.
- Full management. 12% of rent collected, no VAT and no set up fee, with inventory and check in included. See our landlord services, fees and the fee calculator.
- Let only. 75% of the first month's rent, with a minimum of £495.
- HMO management. 14% of rent collected plus £120 for each room we let. See HMO management in Tameside.
Tameside landlords in Ashton-under-Lyne, Stalybridge and Hyde can start from our Ashton-under-Lyne letting agent page, or see Hyde.
