Statutory guidance

Tenant Fees Act 2019: statutory guidance for enforcement authorities

Updated 1 May 2026

Applies to England

Tenant Fees Act amended by the Renters’ Rights Act 2025

Overview

This guide is for enforcement authorities. It will help you understand how to enforce the Tenant Fees Act 2019 amended by the Renters’ Rights Act 2025.

It will help determine what fees tenants and lodgers can be required to pay and what fees they cannot be asked for. 

Local authorities that carry out enforcement activity under the Tenant Fees Act 2019 must have regard to this guidance. 

The words ‘must’ or ‘shall’ are used to cover a statutory requirement. Where the words ‘may’ or ‘should’ are used, a course of action is advised, but it is not mandatory. 

This guidance applies to England only.  

There is existing guidance for tenants.

There is updated guidance for landlords and letting agents

The Tenant Fees Act 2019 should be considered alongside other legislation which includes: 

• Renters’ Rights Act 2025

• Housing Act 2004

• Client Money Protection Schemes for Property Agents Regulations 2018 S.I. 2018/751 

• Client Money Protection Schemes for Property Agents Regulations 2019 

• Enterprise and Regulatory Reform Act 2013

• Consumer Rights Act 2015 

• Housing and Planning Act 2016

The Tenant Fees Act 2019 amends:  

• Consumer Rights Act 2015, section 83 and 87 

• Enterprise and Regulatory Reform Act 2013 section 85

• Redress Schemes for Letting Agency Work and Property Management work order 2014 article 7 

• Housing and Planning Act 2016 Order 2014 and changes to section 135 

Consumer Rights Act 2015, chapter 3 of part 3  

Chapter 3 of Part 3 of the Consumer Rights Act 2015 requires letting agents in England and Wales to prominently display information in their office and online about their fees. Agents in England must display information regarding their membership of redress schemes and client money protection schemes.  

The amendments are:  

• Where a letting agent has advertised on third party websites, for example, Rightmove, Zoopla or Facebook, they must publish their fees on the website or ensure that there is a link to a list of fees on the agent’s website with a list of their fees.  

• to allow a local weights and measures authority to impose more than one financial penalty for a continuing breach where the fees have not been published 

• to require letting agents to give the name of their client money protection scheme (not just whether they are a member of such a scheme).  

Amendment to Client Money Protection Schemes: section 135 of the Housing and Planning Act 2016  

The Act amends section 135 of the Housing and Planning 2016 so that enforcement of Client Money Protection Schemes is through local weights and measures authorities.

There is separate guidance on client money protection. 

Definition of a relevant person under the Tenant Fees Act 2019

A ‘relevant person’ is a tenant or a person acting on behalf of a tenant, or a guarantor. A relevant person does not include:   

• a local housing authority defined in the Housing Act 1985, section 1 

• The Greater London Authority 

• a person acting on behalf of a local authority defined in the Housing Act 1985, section 1 

• a person acting on behalf of The Greater London Authority 

Local housing authorities, the Greater London Authority or organisations acting on their behalf are excluded from the definition of relevant person if they are guaranteeing rent on behalf of a tenant.  

Letting agent work under the Tenant Fees Act 2019

A person is a letting agent if they carry out activity in the course of a business in response to instructions received from a landlord looking to let or from a tenant looking to find somewhere to rent. However, if a person carries out this work as part of their employment contract they will not be a letting agent for enforcement purposes.  

A person who is instructed by a landlord or tenant to carry out legal activity is not a letting agent when acting in that capacity, so long as they are authorised to do so. The definition for a ‘legal activity’ and an ‘authorised person’ can be found in the Legal Services Act 2007.

Tenancies that the Tenant Fees Act covers

The act applies to assured tenancies (but not social housing assured tenancies), student accommodation, tenants in Houses of Multiple Occupation (HMO) and licenses to occupy housing such as lodgers.  

A licence to occupy is when a person gives permission to someone to live in their property. It does not give the licensee a legal interest in or control of the housing and includes licenses issued to lodgers.  

The act applies to housing associations and local authorities, when they are letting an assured tenancy privately. 

The act does not apply to: 

• long leases, as defined in chapter 1 of part 1 of the Leasehold Reform, Housing and Urban Development Act 1993

• shared ownership leases as defined by section 7(7) of the Leasehold Reform, Housing and Urban Development Act 1993 

• a license to occupy housing as a holiday let

• excluded licenses  

Excluded licenses 

An excluded license is intended to help charities and Community Interest Companies (this is usually a registered Homeshare organisation) arrange home sharing in private properties for a social benefit. For example, the prevention of loneliness of the elderly.  

A national charity, Shared Lives Plus, has a register for members who rent out Homeshares.

The licensee under Homeshares can be set up to provide the licensor with companionship. The person who had been granted the license may also offer care for the licensor and help with tasks that are not related to finances. 

In cases of companionship or care where the licensee does not pay rent, the licensor may get payments towards council tax, utility bills, internet and phone services or a TV licence.

Prohibited payments

Landlords or letting agents will not be able to require tenants or any person acting on behalf of a tenant or a guarantor to make specific payments when: 

• arranging the grant of or assigning a tenancy 

• granting a tenancy 

• continuing a tenancy 

• changing or varying a tenancy 

• ending a tenancy 

• a tenant has breached a tenancy agreement 

• giving a reference for a former tenant 

Tenants (or anyone acting for a tenant) or a guarantor must also not be required to: 

• take out a loan 

• pay for insurance 

• enter into a contract for a service 

This covers any fee or charge related to a tenancy except for those permitted in schedule 1 of the Act. 

A prohibited payment is outlined in section 3 and schedule 1 of the Tenant Fees Act 2019. If a landlord asks a letting agent to work for them and to let out a property, the landlord may be asked for a fee. If a tenant wants to rent out the same property from the landlord and has to pay a fee other than those permitted by the act, then that is a prohibited payment. The prohibited payment is the one charged to the tenant. 

In cases where an agent finds a property on behalf of a tenant but does not work for the landlord in relation to that property, the agent (commonly known as sourcing agents) can then charge the tenant fees. 

The approach to implementing this policy has been to ban all fees except those expressly permitted in Schedule 1 of the act. 

If a landlord or agent required a prohibited payment, you as an enforcement authority can investigate them and issue a civil penalty if they have broken the rules. 

If tenancies started before the 1 June 2019 with a clause in the agreement requiring a prohibited payment, the clause will no longer apply. Section 4 of the act states that any term of a tenancy agreement which breaches section 1 or section 2 is no longer binding. 

Payments that landlords and letting agents are permitted to require 

Landlords and letting agents can require and take the following payments: 

• rent if the tenant and landlord have signed the tenancy agreement 

• a fee for late payment of rent 

• a fee to replace a lost key or security device 

• a fee to change the tenancy when requested by the tenant capped at £50 or reasonable costs if the amount is above £50 

• when a tenant asks to end the tenancy 

• to cover utilities and landline 

• a refundable tenancy deposit 

• a refundable holding deposit to reserve a property capped at one week’s rent

Payment of rent, utilities and changes to tenancies

####Rent The payment of rent is a permitted payment. There are rules on when a landlord or a letting agent can ask a tenant to pay rent at different stages of agreeing the tenancy.   

Landlords and letting agents will not be able to ask a tenant to pay rent in advance in relation to an assured tenancy. For more information, refer to the guidance on when rent can be paid in advance. 

Landlords and letting agents cannot require a tenant to pay rent before the assured tenancy agreement is signed. If they do that, you can investigate them and issue a civil penalty if they have broken the rules. 

Landlords and letting agents cannot require a tenant to pay rent before the assured tenancy agreement is signed. Any requirement of rent in advance of a tenancy starting is prohibited under the Tenant Fees Act 2019. Where this occurs you may investigate them and issue a civil penalty if they have broken the rules.

If a tenant offers a landlord or agent rent before all parties have signed the tenancy agreement, the landlord or agent must not accept it. If they accept the rent, you can also investigate and issue a civil penalty. 

Rent after a tenancy agreement has been signed by the tenant and landlord  

Rent should be paid at regular intervals and should be equally split across the tenancy. In the first year of the tenancy, a landlord or agent must not charge the tenant more at the start of the tenancy.  

For example, if a landlord or agent requires a tenant to pay £800 in month one and £500 from month two onwards, the additional £300 in month one will be a prohibited payment. 

Default fees for late payment of rent 

If the tenant is late in paying their rent, a landlord or agent may charge for payment that has been outstanding for 14 days or more. The daily interest must not be more than the annual percentage rate of 3% above the Bank of England’s base rate. 

A landlord or agent can only charge a fee for default on rent, as long as that fee was part of the terms of the tenancy agreement.

Default fees for lost keys, security devices or fobs 

The tenant is responsible for looking after the keys for the property throughout the tenancy. If a tenant loses a key or security device, a landlord or agent can charge a fee. This could only happen if that fee was part of the tenancy agreement. 

Any fee cannot exceed the landlord or agent’s reasonable costs incurred and must be evidenced in writing to the tenant who is liable for the payment. 

This act does not affect the landlord’s entitlement to recover damages through the tenancy deposit or through the courts. The act also does not affect an agent’s entitlement to recover damages through the courts for a breach of the tenancy agreement. 

Assignment, novation or variation of a tenancy requested by the tenant  

Assignment is the process whereby a person, the assignor, transfers rights, obligations or benefits to another, the assignee. For example, where a new tenant takes the place of another in a flat share arrangement. 

Novation involves the creation of a new contract and requiring consent of all parties.  

Variation is the act of changing or adapting a contract.   

If the tenant requests a change to their tenancy agreement, for example, adding another tenant, a landlord or agent can charge a fee. The expectation is that the charge should not exceed £50 unless the reasonable costs are higher. If the landlord or agent charge a fee above that, they should give evidence to prove the costs were higher. The landlord or agent should give proof of this to the tenant. This could be through invoices or receipts. 

Payments when a tenant wants to end the tenancy early 

The fee that a landlord or letting agent can charge depends on the type of tenancy. 

If it’s an assured periodic tenancy, then the landlord can charge a fee if their tenant does not give the correct amount of notice. For an Assured Periodic Tenancy, the maximum amount of notice a tenant can be required to give is 2 months. 

The landlord can charge up to the amount of rent they would have received if the tenant had given the correct amount of notice.  

If it’s a license to occupy then the landlord can charge a fee if the tenant: 

• does not give the correct amount of notice 

• leaves before the end of an agreed fixed term  

For a fixed term license to occupy, the landlord could charge a fee up to the amount of rent that would have been due for the remainder of the fixed term. 

Payments for utilities, communication services and council tax  

If tenants are required to pay for bills separately, this should be mentioned in the tenancy agreement.  

Payments could include: 

• gas and electricity bills  

• broadband  

• landline 

A tenant cannot be required to pay for these costs if they are already paid for in the rent.

Council Tax

A landlord can include a payment for council tax within the rent where this is agreed in the tenancy agreement.

If payments for council tax are not included in the rent, a landlord can require their tenant to pay council tax to the relevant billing authority.

Landlords and agents cannot require a tenant to pay a separate, additional charge to them for council tax.

Television Licence

A landlord can include a payment for a Television Licence within the rent where this is agreed in the tenancy agreement.

If payments for a Television Licence are not included in the rent, a landlord can require the  tenant to pay the British Broadcasting Company (BBC) for a Television Licence.

Landlords and agents cannot require a tenant to pay a separate additional charge to them for a Television Licence.

Deposits

Holding deposit to reserve a property  

A landlord or agent can ask a tenant to pay a holding deposit before a tenancy is entered into whilst they undertake reference checks. The maximum holding deposit must not be more than one week’s rent. If a landlord or agent requires any amount above one week’s rent, the excess will be a prohibited payment.   

Example

If there are 3 tenants who are jointly liable for the agreed weekly rent of £240, the landlord or agent cannot charge each tenant a £240 holding deposit. The maximum a landlord can accept for the property as a whole would be £240. 

A landlord or agent must refund the holding deposit if: 

• the landlord and tenant sign a tenancy agreement 

• the landlord does not go ahead with the tenancy 

• a tenancy agreement is not signed within the agreed deadline 

A landlord or agent can keep the holding deposit to go towards the tenancy deposit or the first month’s rent with the tenant’s consent. This can only happen if a tenancy agreement has been signed. 

The default deadline for signing a tenancy agreement after paying a holding deposit is 15 days after the landlord or letting agent receives the holding deposit.  

The landlord or agent can agree a longer or shorter deadline with the tenant in writing. 

A landlord or agent can keep the holding deposit if a tenant: 

• fails a right to rent check 

• withdraws from the application process 

• does not sign the tenancy agreement despite the landlord and agent taking all reasonable steps to do so 

• gives false or misleading information 

False information is when there is a difference between the information provided and the correct information. 

This is usually related to inaccuracies around the tenant’s financial suitability. A tenant could also fail to disclose relevant information.

For example:

• a tenant has lied about income or employment

• a tenant failed to disclose relevant information when they were asked for it. For example, a tenant has not disclosed that they have a County Court Judgment (CCJ) 

• income was shown to be significantly higher because of a typo, even if the tenant was not aware of the typo

A landlord or agent cannot keep a holding deposit if the false or misleading information or conduct is not relevant to the individual’s suitability as a tenant.

For example:

• where a tenant has misspelled their name, the name of their employer or a previous address 

• the tenant did not declare a previous address. The omission did not impact on their credit worthiness or assessment of suitability 

• the tenant slightly misjudged their income which does not affect their ability to afford the rent 

Where a landlord or agent keeps the holding deposit, they must give reasons in writing to the tenant. This has to be within 7 days of the landlord’s decision to not grant a tenancy agreement or the expiry of the deadline for the agreement. If they do not do this the landlord or agent must refund the holding deposit.   

A landlord or letting agent must not receive additional holding deposits for the same property. This would not apply if the first holding deposit has been repaid unless the earlier deposit was lawfully retained under schedule 2. This is intended to prevent landlords or letting agents taking multiple holding deposits for one property at the same time from different prospective tenants.

You can issue a financial penalty under section 8 of the act, if a landlord or agent fails to return the holding deposit within 7 days of: 

• the tenant and landlord agreeing to a tenancy agreement 

• the date of the decision by the landlord or agent not to grant a tenancy agreement 

• the deadline for a tenancy agreement to be drawn up 

You can also issue a financial penalty if they:  

• do not give written reasons to explain why they have kept the holding deposit 

• impose a rule to keep the holding deposit 

• create a situation where a tenant would not agree to a tenancy agreement 

The financial penalty can go up to £5000. 

Tenancy deposit

A landlord or agent is not legally required to take a tenancy deposit.  

They must not ask for a deposit which is more than five weeks’ rent for properties where the annual rent is below £50,000. 

For tenancies with an annual rent of £50,000 or higher, a landlord or agent must not ask for a deposit which is more than six weeks rent.  

Properties with an annual rent of more than £100,000 are not covered by the Tenant Fees Act. 

Example

There are 3 joint tenants who are responsible for paying the total weekly rent of £240.The landlord or agent cannot ask each tenant to pay a tenancy deposit of up to five times the total weekly rent. The maximum tenancy deposit they could be asked to pay would be £1,200. 

Any deposit that a landlord or agent requests for an assured periodic tenancy must be protected in a government backed tenancy deposit scheme within 30 days of payment. This is the tenant’s money, and a landlord or agent will need to provide evidence to support any deductions from the deposit at the end of the tenancy. 

Where tenancies started before 1 June 2019, landlords do not need to repay the amount of the deposit exceeding the cap until the tenancy ends or is renewed. At that point, the landlord will then need to repay the outstanding amount of the deposit.

Enforcing the act

It is the duty of every local weights and measures authority in England to enforce in its area: 

• prohibitions for landlords, section 1 

• prohibitions for letting agents, section 2 

• requirements for holding deposits, schedule 2 

A district council that is not a local weights and measures authority may enforce sections 1, and 2, and schedule 2 under Tenant Fees Act 2019.  

The Lead Enforcement Authority has the power to enforce the relevant letting agency legislation.  

As an enforcement authority, you must be satisfied beyond reasonable doubt that a person has breached section 1 or 2 or schedule 2 of the act to impose a financial penalty or start criminal proceedings. This standard of proof is needed for a second or subsequent breach, within 5 years of a previous penalty or conviction. Where a person commits a repeat breach of section 1 or section 2, they will have committed a criminal offence. This decision stands unless challenged on appeal. You may wish to safeguard your decision with a review panel. 

The Lead Enforcement Authority  

The Lead Enforcement Authority is the Secretary of State, or a person the Secretary of State has agreed to be the Lead Enforcement Authority.  

The Secretary of State may arrange a local weights and measures authority in England to be the Lead Enforcement Authority.  

Bristol City Council is currently appointed as the Lead Enforcement Authority, operating as the National Trading Standards Lettings Agency Team. 

Relevant legislation: 

Tenant Fees Act 2019  

• Consumer Rights Act 2015, chapter 3 of part 3 as it applies to dwelling houses in England 

• Enterprise and Regulatory Reform Act 2013, an order under section 83(1) or 84(1) 

• Housing and Planning Act 2016 under section 133, 134 or 135

Lead Enforcement Authority duties 

It is the duty of the Lead Enforcement Authority to oversee the operation of the relevant letting agency legislation. They can issue guidance and advice to enforcement authorities in England on enforcing breaches under this act.  

If you as a local authority, are unclear on your duties and powers under the act, the Lead Enforcement Authority will be able to advise you. 

The Lead Enforcement Authority may also disclose information to relevant authorities so they can determine whether there has been a breach or an offence. For example, you may wish to know whether a landlord or agent has previously committed a breach in another region.   

It is also the duty of the Lead Enforcement Authority to review and advise the Secretary of State about:  

• social and commercial developments in England and elsewhere relating to tenancies 

• the carrying on of letting agency work and related activities 

• the operation of the relevant letting agency legislation  

Enforcement by the Lead Enforcement Authority  

The Lead Enforcement Authority can enforce the legislation where a breach is reported directly to them. They can also take on cases when local authorities are unable to enforce the law and have referred the case to them.    

If you are unable to enforce the legislation, you should ask the Lead Enforcement Authority for guidance. In some circumstances, the Lead Enforcement Authority may take steps to enforce the legislation themselves.  

The Lead Enforcement Authority may exercise the same powers as the relevant local authority and must notify you of their action. You will no longer have the duty to enforce the breach if another authority is enforcing the law. You must assist the Lead Enforcement Authority if needed.

Gathering evidence

To prove the breach, you should gather evidence. A local weights and measures authority has powers in schedule 5 of the Consumer Rights Act 2015 to enforce the act. 

You can:  

• identify who has committed the breach  

• check your records and the records of the Lead Enforcement Authority to establish if there was a previous breach 

• check any relevant documents, such as a tenancy agreement or company website  

• use software which captures computer screen activity and sound simultaneously allowing you to record evidence with verbal annotation  

• gather any correspondence between the tenant and landlord or agent, such as emails or text messages and bank statements  

• use software which will check if a page has been changed by looking at older pages 

• arrange for a criminal investigator to assist you 

• conduct interviews with the landlord or agent under caution  

• ask a financial intelligence officer to show the transfer of money 

Evidence gathering must be conducted in line with the Regulation of Investigatory Powers Act 2000, RIPA codes.

Penalties

As an enforcement authority you can issue a civil penalty of up to £5,000 if you find a landlord or agent liable for: 

• requiring a prohibited payment 

• failing to comply with the rules regarding the handling of the holding deposit 

Repeat breaches when requiring prohibited payments 

If a landlord or letting agent breaches section 1 or sections 2 of the Tenant Fees Act within 5 years of a previous financial penalty being imposed (which has not been withdrawn) a person commits a new offence. 

A landlord or letting agent can be issued with a financial penalty of up to £30,000 or you can prosecute them. In these cases, you will have discretion over whether to prosecute or impose a financial penalty. A financial penalty is not a criminal conviction.   

When a person has been convicted, the penalty is an unlimited fine and a banning order offence under section 14 of the Housing and Planning Act 2016. For guidance on the current process refer to the banning orders guidance.

Repeat breaches when unlawfully keeping the holding deposit 

Where a landlord unlawfully keeps the holding deposit within 5 years of a previous financial penalty it is a civil breach. This would incur another financial penalty of up to £5,000. It is not a banning order offence. 

Multiple breaches 

An agent or landlord can receive a financial penalty for multiple breaches at once if they have not previously been fined. The financial penalty for each of these breaches is limited to £5,000 each.  

Each requirement for a prohibited payment is a breach. For example, an agent or landlord requires: 

• prohibited fees from different tenants with different tenancy agreements  

• one tenant to pay multiple prohibited fees for different reasons at different times   

• one tenant to pay a total amount for fees made up of separate prohibited payments. For example, a multiple breach would be requesting £200 for arranging the tenancy and doing a reference check 

The proceeds of financial penalties imposed under the Tenant Fees Act can be used to cover costs and expenses incurred in, or associated with, carrying out your enforcement functions under this act. The proceeds can also cover costs related to enforcement in the private rented sector.

Repeat Breaches: decide on whether to prosecute or impose a financial penalty  

You must be fair, independent and objective when deciding whether to prosecute or impose a financial penalty. You must not let personal views about ethnic or national origin, gender, disability, age, religion or belief, political view or sexual orientation influence your decision. You must not be influenced by improper or undue pressure from any source. You must always act in the interest of justice and not solely for obtaining a conviction. 

You must apply the principles of the European Convention on Human Rights under the Human Rights Act 1998, at each stage of a case. 

You are expected to develop and document your own policy on when to prosecute and when to issue a financial penalty. 

In the cases of repeat breaches, you must decide whether to prosecute the landlord or agent in the magistrates’ court or to impose a financial penalty of up to £30,000.  

Individuals convicted of an offence under the act are liable to an unlimited fine set by the courts.  

Where a financial penalty is imposed as an alternative to prosecution this would not be a criminal conviction. You cannot impose a financial penalty and prosecute for the same offence.  

When a breach is particularly serious or where the landlord or agent has committed similar breaches in the past, it may be appropriate to prosecute. This does not mean financial penalties should not be used in cases where serious breaches have been committed. You may decide that a significant financial penalty, rather than prosecution, is the best approach. 

When deciding whether to prosecute a landlord or agent you should consider if:  

• there is reliable evidence that the offence has been committed and there is a realistic prospect of conviction 

• it is in the public interest 

You can read guidance on The Code for Crown prosecutors.    

The following factors may be considered when deciding whether to prosecute:  

• history of non-compliance  

• severity of the breach  

• deliberately hiding activity or evidence  

• knowingly or recklessly supplying false or misleading evidence  

• intent of the landlord or agent, individually, or as a business  

• attitude of the landlord or agent  

• deterrent effect of a prosecution 

• the amount of financial gain from the breach   

You must record every decision and the reasons for your decision. 

You must consider your policy on whether to pursue a banning order under the Housing and Planning Act 2016. Banning orders will usually be for the most serious cases.

If the court makes a banning order, you must record this in the database of rogue landlords and property agents under the Housing and Planning Act 2016. This would also be the case if 2 financial penalties have been imposed on a person for offences in a 12 month period. 

Offences by officers of the corporation 

Section 13 of the Tenant Fees Act states that an officer of a corporation can also be prosecuted if the offence committed by the corporation was done with their consent or connivance or due to their neglect.  

They will be liable to punishment for the offence as well as the corporation. This is the case where the corporation is managed by its members. You will have to prove that the offence was committed with the approval or willing of the officer or member, or it is down to that person’s negligence.

Set the appropriate financial penalty

You have discretion when setting the level of a financial penalty. 

You are expected to consider each breach on a case by case basis and for the maximum amount to be reserved for the worst offenders.  

The actual amount for each case should be fair and proportionate. It should reflect how serious the breach is as well as the landlord or agent’s previous record. 

You are expected to develop and publish your own policy on setting the appropriate level of financial penalties. You should contact the Lead Enforcement Authority to ensure your policies are in line with the national approach. You will need to consider this alongside what is relevant to your local area. 

You should consider the following factors to ensure that the financial penalty is set at the right level. 

Severity of the breach  

The more serious the breach, the higher the penalty should be.

This should consider the landlord’s track record and the harm caused to the tenant.     A higher penalty will be appropriate where the landlord or letting agent has a history of one or several of these:

•  they have failed to comply with their obligations

•  their actions were deliberate

• they ought to have known, that they were in breach of their legal responsibilities

Agents and landlords are running a business and should be expected to be aware of their legal obligations.

The greater the harm or risk of harm to the tenant, the greater the amount should be when imposing a financial penalty.

You should consider the amount of harm that the landlord or agent has caused the tenant. The greater the harm, the greater the financial penalty should be. 

Punishment of the landlord or agent  

A financial penalty should not be regarded as an easy or lesser option compared to prosecution. The penalty should be proportionate and reflect both the severity of the breach and previous track record of the offender. The penalty should be set at a high enough level to ensure that it has a real economic impact on the landlord or agent and demonstrates the consequences of not complying with their legal obligations.

This should include considering: 

 • deterring the landlord or agent from repeating the breach  

• deterring others from committing similar breaches 

• removing any financial benefit the landlord or agent may have gained by committing the breach.

Aggravating and mitigating factors 

When setting the financial penalty, you should consider whether there are aggravating or mitigating factors. The following is a non-exhaustive list of factors that enforcement authorities can consider depending on the circumstances and local priorities.

For example, aggravating factors include:  

• previous convictions or record of non-compliance 

• landlords or agents looking to make money 

• landlords or agents who obstruct the investigation  

• landlords or agents who deliberately hide evidence  

• landlords or agents who deliberately hiding breaches of the law 

• when the tenant is vulnerable  

Mitigating factors could include the landlord or agent:  

• co-operating with the investigation  

• quickly repaying the illegal charges to the tenant  

• not having previous breaches  

• is vulnerable which is linked to the breach 

• is of good character and has had exemplary conduct  

• admits their guilt  

• gives evidence that health reasons had impacted on their ability to correct the breaches such as poor mental health and unforeseen or emergency health issues 

Fairness and proportionality 

The financial penalty should be fair and proportionate, but in all instances it should act as a deterrent and remove financial gain. 

When issuing a financial penalty for more than one breach, or where the landlord or agent has already been issued with a penalty, you should consider whether the total financial penalties are fair and proportionate.  

Where the landlord or agent is issued with more than one financial penalty, you should read the guidance on Offences Taken into Consideration and Totality by the Sentencing Council for England and Wales. 

You should consider the impact of the financial penalty on the landlord or agent’s ability to comply with the law and whether it is proportionate. For example, would the penalty put them at risk of losing their home  

You should think about the impact of the financial penalty on third parties such as staff or other customers. 

You must keep a record of each decision and the reason for setting the financial penalty at that level. 

Issue a financial penalty 

Before imposing a financial penalty, you must give the landlord or agent notice of your intention. This is called a ‘notice of intent’. 

This notice must be given within a period of six months, beginning with the first day on which the authority has evidence that the person has breached the prohibitions in the act. 

If the breach is a continuing breach, the notice must be given while the breach is continuing or within six months of the last day on which the breach occurred.

The notice of intent must include:  

• the date on which the notice is served  

• the amount of the proposed penalty 

• the reasons for proposing to impose the penalty 

• information about the right to make representations to appeal the decision 

A pro forma notice of intent is provided at annex A of this guidance.  

A person who is given a notice of intent has 28 days to make representations. After 28 days, you must decide on whether to impose a financial penalty and if so, the amount of the penalty. 

If you decide to impose a financial penalty, you must give the person a final notice. This notice states that they must pay the penalty within 28 days. The notice could also require the landlord or letting agent to repay the prohibited payment or holding deposit that they unlawfully retained within 7 to 14 days. 

The final notice must include specific information, including: 

• the date on which the final notice is served 

• the amount of the penalty 

• the reasons for imposing the penalty 

• how and when to pay the penalty

• the rights of appeal  

• the consequences of failing to comply with the notice 

A pro forma final notice is provided at annex B of this guidance.   

You can withdraw a notice of intent or final notice at any time. You can also reduce the amount specified in the notice. A notice can be changed and repayment of a prohibited payment or holding deposit can be removed from the notice. The person who has received the notice must be told in writing of any withdrawal, reduction or changes to the notice.  

If a landlord or agent fails to pay all or part of a financial penalty, you may recover the outstanding amount on the order of the County Court, as if it were payable under the order of that court.  

The proceeds of financial penalties imposed under the Tenant Fees Act can be used cover costs and expenses incurred in, or associated with, carrying out your enforcement functions under this act. The proceeds can also cover costs related to enforcement in the private rented sector.

Compel a landlord to return a prohibited payment

Section 10 of the act lets you, where a financial penalty has been imposed, compel a person who has taken a prohibited payment or unlawfully retained a holding deposit, to pay the tenant, or other relevant person, any outstanding payments.

If the landlord or agent insisted a person needed to pay a fee to get a contract, they may need to repay the tenant. 

For example, where a landlord requires a tenant to pay for a third-party reference for the tenancy, they may need to reimburse the tenant for any fees paid.  

A landlord or agent must get consent from the tenant (or relevant person) on how the payment is refunded. For example, whether it is paid back directly or the amount is taken off the rent or tenancy deposit. A landlord or agent will not be able to take the amount off the rent if the prohibited payment they asked for was rent before it was due. 

Where you require a landlord or letting agent to repay a tenant or other relevant person under section 10 of the act, you can charge the landlord or letting agent interest. In this case, a landlord or agent pays interest from the date specified in section 11, subsection (3) until the amount is paid. The rate of interest is specified in section 17 of the Judgments Act 1838. 

Support a tenant’s application to the First-tier Tribunal 

Under section 15 of the act, a tenant or relevant person can apply to the First-tier Tribunal for money from the landlord or agent for prohibited payments. A tenant or relevant person will only be able to recover their actual loss via the First-tier tribunal. They cannot get compensation from landlords or letting agents.  

The tenant or relevant person will not be able to apply to the First-tier Tribunal for repayment if you have started criminal proceedings or if you have ordered the landlord or agent to repay them.  

Section 16 of the act allows you to help a tenant or relevant person to apply to the First-tier tribunal. For example, by giving advice or by conducting legal proceedings.   

You can help a tenant or relevant person apply to the county court if the landlord or letting agent does not comply with the order of the First-tier Tribunal.

Duty to notify

There are certain circumstances where you must notify another body of enforcement action. These circumstances are set out in section 14 of the act.  

Breaches outside of your area 

You must notify another body when you intend to take enforcement action in respect of a breach outside of your area. For example, where a landlord has multiple properties in different areas or if the agent operates nationally. You must keep records so that when a breach occurs, the local enforcement authority can check whether it is a first breach or not. 

Where you are acting outside of the area your authority covers, you must notify that area’s local weights and measures authority. When they get the notification, they will be relieved of their duty to enforce. This duty is reinstated if you notify them that you have not taken the enforcement action.

District council enforcement 

Where a district council proposes to take enforcement action, it must notify the local weights and measures authority as soon as possible.  

When the notification is received, the local weights and measures authority is relieved of its duty to enforce.  

This duty is reinstated if the local weights and measures authority is informed that the district council has not taken the enforcement action proposed.

The enforcing district council is required to notify the local weights and measures authority if they do not take enforcement action.  

Notify the Lead Enforcement Authority 

You must notify the Lead Enforcement Authority as soon as possible after imposing a financial penalty. This lets the Lead Enforcement Authority check whether a penalty has been issued previously by another authority. You must also notify them as soon as you can if you withdraw the financial penalty or if it is rejected on appeal.  

Inform the local housing authority 

If you have imposed a penalty, which has not been withdrawn, and the breach occurred in a local housing authority area which is not in your area, you must notify the local housing authority as soon as reasonably practicable if:

the time for an appeal expires without an appeal taking place    

an appeal against the penalty is withdrawn or abandoned

the final notice imposing the penalty is confirmed or varied on appeal

Section 14(6) of the act gives details of when you would need to notify the Lead Enforcement Authority. 

Lead Enforcement Authority duty to notify 

The Lead Enforcement Authority must notify the relevant local enforcement authority when it plans to take enforcement action. In most instances this will be the local weights and measures authority, but it could also be the local housing authority. 

Section 26, subsection 8 of the act, states that when imposing a financial penalty, the Lead Enforcement Authority needs to notify the local housing authority, even if they are not the enforcement authority.  

The Lead Enforcement Authority would be required to do this in the following circumstances: 

• the time for an appeal expires without an appeal taking place  

• an appeal against the penalty is withdrawn or stopped 

• the final notice imposing the penalty is confirmed or varied on appeal 

• bringing proceedings against a person for an offence 

Work together with other enforcement authorities  

District and county councils in non-unitary authorities should work together to ensure effective enforcement.  

If you work for a district council and become aware of a breach and wish to enforce against it, you should work with your local Trading Standards team to share information. You may be able to use the resources and enforcement tools that Trading Standards have.  

Where a landlord or agent is operating in multiple areas, you should liaise with enforcement authorities in the relevant areas. This will help you find out where the landlord or agent operates to see whether other authorities are taking action.

Appeals

Landlords or agents have the right to appeal against: 

• a financial penalty 

• repaying a prohibited payment or holding deposit  

• a criminal offence 

The right to appeal a financial penalty 

A landlord or agent has the right to appeal a financial penalty through the First-tier Tribunal. The deadline for an appeal is 28 days from the day after the final notice was served.  

A landlord or agent may appeal against the decision to impose a penalty or the amount of the penalty.  

An appeal re-hears the enforcement authority’s decision and may take into account evidence that the enforcement authority has not seen.  

If a landlord or agent makes an appeal, the notice or part of the notice that is being appealed is suspended pending the outcome. 

On appeal, the First-tier Tribunal may confirm, vary or quash the final notice. The notice cannot be varied to go over the maximum penalty of £30,000.  

In the First-tier Tribunal, under rule 14 of the Tribunal Procedure, someone who is not legally qualified can represent a person during proceedings. Enforcement authorities can decide if they want to involve a legal professional. A person can also choose to represent themselves. 

The right to appeal the repayment of a prohibited payment 

Landlords and agents have the right to appeal to the First-tier Tribunal if they do not agree to repaying a prohibited fee, holding deposit or amount paid by a relevant person under a prohibited contract. A prohibited contract is when a term of the tenancy agreement is no longer valid when it asks for a prohibited fee.  

The deadline for an appeal is within 7 to 14 days from the day after the final notice was served. The length of time in which a landlord or agent has to make an appeal to repay the prohibited fee depends on the time stated in the final notice imposing the penalty.

For example, if a landlord has been given seven days to repay a prohibited fee, they will have seven days to appeal this decision.  

An appeal re-hears the enforcement authority’s decision and may take into account evidence that the enforcement authority has not seen. 

If a landlord or agent makes an appeal, the final notice is suspended in relation to the part of the notice which is the subject of the appeal until the appeal is determined or withdrawn. On appeal, the First-tier Tribunal may confirm, vary or quash the final notice. 

The right to appeal a criminal offence 

A landlord or agent can appeal a criminal offence, conviction or sentence. Guidance on how they can appeal a sentence or conviction is available on the Ministry of Justice website.

Publicity following a sanction

We encourage you to publicise a successful penalty for a breach of the legislation.  

Initial breaches 

For an initial breach, you can publicise when a financial penalty has been enforced successfully if this would increase public awareness.  

For example, where you have successfully imposed a financial penalty on a landlord or agent who deliberately requiring a prohibited payment. 

Repeated breach 

For a repeated breach committed within 5 years of a previous penalty or breach, you should publicise successful convictions, banning orders or financial penalties. You should consider how to publish the details locally. 

Many local housing authorities publicise successful prosecutions of rogue landlords through the local press. You should seek legal advice and decide whether to publicise the case or cases. 

The Ministry of Justice has produced publicising sentencing outcomes guidance on what you should consider when publicising sentencing outcomes. 

Tenant requests 

If a tenant asks you to disclose information or criminal convictions against a landlord or agent, you can do this, and these are a matter of public record.  

However, you will need to refer to the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. Data protection: The UK’s data protection legislation - GOV.UK 

Personal and criminal offence data 

You must be compliant with the UK GDPR and the Data Protection Act 2018 when sharing personal data and you should seek further advice. You should consider your data protection policy when deciding on whether to publish information on the enforcement outcome. 

Further information on the principles and your responsibilities on data protection is available on the Information Commissioner’s Office website.