TENANT FEES BILL 

carly-jermyn • January 21, 2019

Legal update on the tenant fee ban





AS PROMISED FOLLOWING THE LATEST READING HERE IS A SUMMARY FROM THE TEAM AT WOODSTOCK



Following the third reading in the House of Lords with just a couple of minor amendments the Tenant Fees Ban 2017 is set to come into force on 1 June 2019 . The debate is somewhat over and Royal Assent is expected in the next few weeks. It’s time to put the date in our diaries and take a closer look at the detail….

What is the aim of the legislation?
To make renting properties in England fairer and more affordable for tenants by reducing the costs at the outset of the tenancy and improving transparency throughout.

Who does the ban apply to?
The ban applies to both agents and landlords

Where does the ban apply?
Both England and Wales are passing their own versions of the legislation. This note focuses on England. Information for Welsh tenancies can be provided on request.

What type of tenancy does this apply to?
Assured shorthold tenancies and licences. Company lets and non-assured tenancies are exempt.

The ban will affect all new tenancies entered into after the Tenant Fees Act comes into force – 1 June 2019 . It will also apply to renewals but not statutory or contractual periodic tenancies . So for all current fixed term ASTs that become periodic after 1 June 2019 the old rules continue to apply. All tenancies running as contractual periodic tenancy (no fixed term tenancy running on a month by month basis) then the old rules also continue to apply.

However, after 12 months the ban will apply to all existing tenancies and the charges imposed within the agreement will have no effect.

In addition, if a Landlord takes a payment after the 12 month date they will have to return the payment within 28 days or they will be in breach of the legislation.


What fees are banned?

Banned fees include any fees not exempt that the tenant (or someone acting on their behalf i.e. a parent or guarantor) is required to pay as a condition of the “ grant, continuance, termination or renewal ” of an assured shorthold tenancy or licence agreement.

Examples of banned fees include charges for –

GRANT CONTINUANCE
  • Credit checks
  • Referencing
  • Inventories
  • Guarantor forms
  • Professional cleaning
  • De-fleeing the property as a “condition” of agreeing to allow pets at the property
  • Gardening services
RENEWAL TERMINATION
  • Tenancy renewal fee
  • Deed of Surrender other than for loss of rent during a void period.

What is exempt?
Holding deposits, rent, deposits and charges for defaulting on the terms of the agreement are all exempt.
BUT all 4 are subject to additional restrictions.

HOLDING DEPOSITS

Holding Deposits will be limited to a maximum of 1 weeks rent , plus:

1. The landlord has 15 days from the date the holding deposit is taken to make a decision as to whether they agree to let the property to the prospective tenant;

2. If the tenancy does not proceed the holding deposit must be repaid within 7 days of the 15 day deadline if it is the landlord’s decision not to proceed;

3. Repayment in full is not required if: -
  • the tenant decides not to proceed;
  • the tenant fails the right to rent checks;
  • provides false or misleading information; or
  • where the landlord tries their best to get the information required and the tenant fails to provide it within the 15 days.

4. If the tenancy does go ahead, the holding deposit must be returned within 7 days of agreement, unless it is offset against payment of the main deposit or used towards the first months’ rent.


RENT

The rent can no longer be set at a higher level at the start of the tenancy and reduced at a later date. This is clearly to combat any artificial increase in rent as a way of getting around the ban on fees.
There is however nothing to stop a higher rent being charged for the duration of the tenancy.

DEPOSITS

Deposits will be limited to 5 weeks rent for tenancies where the annual rent is below £50,000. This has increased (slightly) from the proposed one months’ rent.
Deposits for tenancies where the annual rent is £50,000 or more are limited to the equivalent of 6 weeks rent .

CHARGES FOR DEFAULTING

Under the current draft of the legislation landlords are allowed to charge for two types of default payments - loss of keys and late payment of rent. Both are subject to restrictions: -

Loss of keys: landlords may charge a reasonable cost that can be evidenced in writing. Anything landlords cannot evidence in writing with receipts will probably be considered a prohibited payment.

Late payment of rent : landlords and agents may only charge interest at 3% above the Bank of England base rate on the late payment of rent from the date the payment is missed. You cannot charge for sending reminder letters nor can you include fixed charges.

THIRD PARTY PAYMENTS

There are a number of third party payments that are often required under the terms of the tenancy agreement and which are not prohibited fees.
Examples include a contractual obligation for the tenants to pay:
· Television licence
· Council tax
· Landlord's costs from a specific service provider for utilities
· Landlord's cost for a specific communication service i.e. phones, broadband, Sky TV.

If the landlord seeks to charge more than the billed costs for these services then the additional sum will be considered a prohibited payment.

FINANCIAL PENALTIES!!

If a breach occurs and payment is taken for any banned fee then the tenants will have recourse through the county courts.

Interest is payable from the date the banned fee is taken.

Local Trading Standards are expected to assist tenants with their claims. More worryingly Trading Standards will be required to enforce the legislation and can issue a fine of up to £5,000 for a first offence . Subsequent breaches are criminal offences or alternatively, the landlord can be fined up to £30,000 and be subject to a banning order.

RESTRICTIONS ON SECTION 21 NOTICES.

No Section 21 notice can be served if a prohibited payment has been a) requested, b) paid by the tenant; and c) is still being held by the landlord or agent.

Landlords and agents can either refund the prohibited payment or (with the permission of the tenant) use that money as payment towards rent or the deposit. This should always be properly documented so that the agreement can be evidenced for the court should the need arise. Examples include written correspondence including an email trail.

Before serving a s21 notice a review of fees charged should be carried out to avoid invalidating any notice served.

TENANCY AGREEMENTS

While most costs related to assignment or surrender of a tenancy are prohibited, you can charge certain small sums if the tenant requests a change in the tenancy or an early surrender.

Change in tenancy : i.e. changing the names of the tenants you can charge a fee of £50 for the change or the costs incurred. You must be able to evidence in writing the costs incurred if they are above £50. Be warned the draft guidance makes it clear that £50 is considered reasonable cost. Anything over and above must be evidenced.

Early Surrender of the tenancy : you may charge fees equivalent to the loss incurred. This does not include charges such as referencing, tenancy drafting etc but you can charge for loss of rent for any void period. The issue is that when agreeing to a surrender the void period is usually unknown so cannot be charged.
block.

Contact Us

News & Insights

By Kirsty Jocham September 16, 2025
The Woodstock vision was to create a law firm that felt different, one where lawyers had true freedom and flexibility within a community of grade A lawyers and the best operational and regulatory support on offer - all while ensuring our clients remain our constant focus. Since 2014, Woodstock has grown into a community of more than 60 lawyers, built on the principle that legal practice can be both professional and personal. We set out to create a place where lawyers have the freedom to shape fulfilling careers, and where clients benefit from clear, expert advice delivered with genuine care. That vision remains at the heart of everything we do. By joining the Lawhive Group, we are strengthening this vision - combining the trusted relationships and values that define Woodstock, with innovative tools that ease the pressures of legal work. This means our lawyers can dedicate more time to what matters most: guiding and supporting our clients.  As our founder, Carly Jermyn , explains: “I’ve always believed a different kind of legal culture was possible, and with Woodstock, we’ve proven it. We’ve created a place where lawyers are supported to grow their careers in a way that fits their lives and works for their clients. This partnership is about scaling that vision with the right kind of technology - AI that enhances our skills and values. What makes it unique is that our lawyers will have the opportunity to shape the tools they use every day.” We recognise that the use of AI in legal practice raises important questions, and that’s why this step is being taken in a carefully controlled and fully compliant way - with SRA approval, and while ensuring confidentiality and compliance remain at the centre of our work at all times. At the heart of Lawhive’s technology are AI colleagues capable of working alongside and supporting human lawyers. Lawrence, Lawhive's first AI colleague is a proprietary AI legal assistant. Lawrence drafts documents, completes case research, and handles routine case management with minimal input - scoring 81% on the rigorous Solicitors Qualifying Exam (SQE), far above the 55% pass threshold. The goal is not to replace lawyers, but to augment their work, reducing repetitive tasks and legal admin. "We're demonstrating that technology can support and enhance the best aspects of legal practice while creating communities where lawyers shape how that technology evolves," said Pierre Proner, CEO and co-founder of Lawhive. "We believe that Lawhive’s vertically integrated model of a regulated law firm and tech platform for lawyers to work alongside AI colleagues, creates better outcomes for everyone." For our clients, your experience with Woodstock does not change. You will continue to work with the same lawyers you know and trust, supported by the same ethos that has shaped our firm from the beginning. What evolves is the scope of what we can achieve, as we combine human expertise with pioneering technology to deliver legal services fit for the future. We are proud of what we have built, and confident in the path ahead. Read the full announcement on Sky News here.
Lawyer reviewing legal documents with scales of justice on desk – Woodstock Legal Services
By Richard Hiron September 1, 2025
Discover 7 common mistakes in UK employment contracts and how to avoid them. Expert advice from Woodstock Legal Services to protect your business
Person reviewing legal and financial documents with a magnifying glass at a desk, laptop and paper
By Zoe Turner August 13, 2025
Fraudulent tenants can cause serious financial and legal problems. Landlord and Tenant Consultant Solicitor Zoe Turner of Woodstock Legal Services explains how rental scams work, warning signs to watch for, and how thorough tenant referencing can protect your property.
A wooden judge’s gavel resting on an open law book, with the Woodstock Legal Services logo visible
By Ryan Heaven August 5, 2025
With the Renters’ Rights Bill (RRB) having entered its report stage in the House of Lords on Thursday, 4 July 2025, landlords across England are watching closely to see what shape the final legislation might take. In this insight, experienced landlord and tenant solicitor Ryan Heaven addresses a growing concern in the sector: will the same restrictions that currently apply to Section 21 notices also apply to Section 8 ? This article separates fact from fiction and offers landlords across the UK clear, practical guidance on what’s actually in the pipeline for Section 8 notices , and how to stay compliant. What’s Happening with the Renters’ Rights Bill? The Renters’ Rights Bill 2025 has remained a central focus for private landlords and letting professionals across the country. With the government proposing a wide-ranging reform of the private rental sector, one of the headline changes is the long-anticipated abolition of Section 21 notices , commonly referred to as “no-fault evictions.” Royal Assent for RRB is expected in September; therefore, we will know the final version of the law at this stage. But as with any major legislative reform, uncertainty can breed misinformation, and the slower the progress, the louder the rumours become. Section 8 Restrictions: What Are Landlords Hearing? One persistent rumour has been making the rounds among landlords and letting agents: The same restrictions currently applied to Section 21 notices , such as requirements for valid Energy Performance Certificates (EPCs) , Gas Safety Certificates , and the How to Rent guide , will also be applied to Section 8 notices as part of the Renters’ Rights Bill. Let’s be clear: this rumour is false. What’s the Legal Difference Between Section 21 and Section 8 Notices? For those new to the distinction between the two possession routes: Section 21 notices allow landlords to regain possession of a property without giving a reason, which is why they’re referred to as “no-fault” evictions. Section 8 notices require the landlord to rely on one of the grounds for possession listed in the Housing Act 1988 . These include reasons such as rent arrears , anti-social behaviour , or other breaches of tenancy. At present, Section 21 notices are highly regulated. If landlords do not provide required documents, such as a valid EPC, Gas Safety Certificate, or How to Rent guide, the notice becomes invalid. Section 8 notices, on the other hand, are not currently bound by these documentation requirements. And according to government updates, that is not about to change. What’s the Official Government Position on Section 8 Notices? While the Bill continues to evolve, there are some concrete steps landlords can take today to stay ahead of the curve: Review your deposit processes to ensure you’re fully compliant with protection schemes and prescribed information delivery Understand the grounds for possession under Section 8 ; these will soon be your primary tool Monitor updates around the expected standardised notice form due later this year Seek early legal advice when considering eviction, especially where compliance issues may arise Being proactive now will save time, money and stress later. The earlier you resolve any grey areas, the stronger your legal position will be when the RRB becomes law. Specialist Advice from Woodstock Legal Services Whether you’re getting to grips with the Renters’ Rights Bill, managing a complex tenancy, or ensuring your notices are fully compliant, our award-winning Landlord & Tenant Team is here to help.
Two smiling women embracing at a modern office desk, with a laptop and documents in front of them
By Richard Hiron July 30, 2025
In his latest insight, Employment Law Consultant Richard Hiron explores how UK employers and HR professionals can handle personal relationships between staff in the workplace sensitively and lawfully. While there’s no specific legislation banning such relationships, failing to manage them appropriately could expose you
Ozzy Osbourne's star on the Hollywood walk of fame a tribute to his passing
By Becci Newton & Luke English July 28, 2025
Following Ozzy Osbourne’s passing, Woodstock Legal Services explores the legal steps behind the scenes—royalties, estates, and what this means for others.
By Richard Hiron July 21, 2025
Having a working relationship with an outsourced HR provider can make day-to-day people management easier for many businesses. But what happens when that relationship goes a step too far? In his latest insight, Employment Law Consultant Richard Hiron explores when outsourced HR professionals may legally become agents of their clients, and why this matters. Why Outsourced HR Services Appeal to UK Businesses Outsourced HR services offer a range of benefits that have made them increasingly attractive to UK employers. These include: Cost-effectiveness compared to employing a full-time HR team Greater freedom in advising clients than being an in-house HR adviser A sense of legal separation, making HR advisers appear at arm’s length from internal decisions However, recent case law from the Employment Appeal Tribunal (EAT) suggests that outsourced HR professionals may not always be as independent as they assume, and that they need to be very careful not just about the contractual terms of their arrangements with their clients, but also the practical application of the relationship. Handa v The Station Hotel: What Happened? The case of Handa v The Station Hotel (Newcastle) Limited and others [2025] EAT 62 raised important questions about the legal standing of outsourced HR professionals. We won’t linger on the details, because you didn’t come here for a lecture in employment law, but in essence: An employed director reported potential financial misconduct, which could have been classified as whistleblowing (also known as “protected disclosures”). Complaints from other staff members about bullying and harassment were then made against that director. One outsourced HR consultant was instructed to investigate those complaints and recommended that disciplinary action against the director be considered. A second outsourced HR professional conducted the disciplinary hearing and advised that the employer would be “justified” in dismissing the director for gross misconduct - advice issued in collaboration with the employer’s solicitors. Ultimately, the employer dismissed the director, based on the outsourced HR professional’s recommendation. What Is an Agency Relationship in Employment Law? It is not enough to simply provide a service or act helpfully to become someone’s agent in the eyes of the law. Legally, an agent is someone who has been authorised to act on behalf of another person or organisation, often with the ability to make decisions that directly affect that person’s legal or financial position. Typically, an agent is someone trusted to act in another’s best interests, which is why many agents are also fiduciaries. Trustees, company directors, financial advisers, business partners, and solicitors are common examples of these. What they have in common is the authority to affect relationships between the person or organisation they represent and third parties. Crucially, there must usually be more than just a contract for services for a person to be considered an agent. An agency relationship arises when a person has decision-making authority and is actively representing the interests of someone else with their approval. Without that, no matter how beneficial or reliable the service provided, an agency relationship is unlikely to be found. What Would Make an Outsourced HR Professional an Agent? In the Handa case, neither of the two outsourced HR professionals was found to be an agent in the decision to dismiss the employed director. But that doesn't mean an agency relationship couldn’t have existed elsewhere. Here’s where the legal line gets blurry: 1. Performing Core Employer Functions If an outsourced HR consultant performs functions that are typically reserved for the employer, such as conducting grievance processes or disciplinary hearings, they may be considered the employer’s agent. This is especially the case where employees or third parties deal directly with the HR provider, and the employer has little or no involvement. 2. Going Beyond Contractual Services Even where a written contract exists, carrying out roles that go beyond pure service delivery can give rise to an agency relationship. Whilst a fiduciary relationship is a key hallmark of agency, it is not the only factor in determining whether an outsourced HR professional will be considered an agent. This may include making final decisions on matters such as pay, dismissal, or internal procedures. 3. Exercising Authority Without Oversight Where the HR provider is granted authority to act independently, for example, to run a disciplinary process from start to finish without significant input from the employer, they may be legally classified as an agent. 4. Evidence of Collusion or Shared Control The closer the working relationship between the employer and the HR consultant, the more likely it is that the agency will be inferred. In the Handa case: The first HR professional merely recommended a disciplinary process. The second HR professional reviewed the evidence and concluded dismissal was justified, but did not carry it out herself. If either had gone a step further and directly made the dismissal or made other decisions on behalf of the employer, they would likely have crossed the line into agency. 5. Perception Alone Is Not Enough An employee’s perception that an HR professional is acting on behalf of the employer is not enough by itself to create a legal agency, but might be important if combined with other factors. However, in Handa, the director’s claims of being victimised after whistleblowing did not automatically make the HR professionals agents of the employer. How Outsourced HR Professionals Can Avoid Legal Risk So, what can HR consultants do to protect themselves? Be Clear in Your Contracts The contract with your client should clearly state the limits of your role. Avoid any language that implies you can make final decisions on behalf of the employer, especially regarding disciplinary action, grievance outcomes, or dismissals. Simply saying that you are not your client’s agent is unlikely to be enough, especially if your actions do not match what your contract with your client says. Stay Within Advisory Boundaries Advise, recommend, support, but don’t decide. Let your clients make the final call, even if you believe a certain outcome is justified. This is where the line between adviser and agent is often drawn. Avoid Acting Like an Employee Don’t allow staff to contact you directly for day-to-day HR matters unless this is carefully managed through a defined service agreement. Even then, remember that providing services like payroll, internal HR policies, grievances, or disciplinaries puts you in sensitive territory. Seek Legal Advice When in Doubt If you find yourself being asked to take actions that go beyond your usual service scope, pause and take legal advice. It may save you significant time, stress and potential liability later. Why This Case Matters for Employment Law Professionals The Handa decision serves as an important reminder that legal responsibility doesn't always rest neatly with the employer. If you’re working with HR consultants or are one yourself, understanding where legal boundaries lie is critical. This is especially important for: Solicitors working with SMEs who rely on outsourced HR providers HR professionals offering freelance or agency services Employers who want to reduce legal risk when outsourcing HR functions  Specialist Advice from Woodstock Legal Services Worried about becoming responsible for your client’s employment decisions? At Woodstock Legal Services, we specialise in employment law advice tailored to HR professionals and consultants. Richard Hiron, our experienced Employment Law Consultant, has worked directly in the HR sector and regularly advises outsourced HR professionals across the UK. Whether you need advice on contracts, investigations, disciplinaries or complex whistleblowing concerns, Richard is here to support you.
House for sale that sold.
By Charlotte O'Driscoll June 30, 2025
Selling a house? Discover how to speed up the conveyancing process with expert tips from a UK property lawyer. Avoid delays, stay on track, and complete with confidence.
By Zoe Turner June 27, 2025
In her latest insight, Housing Landlord and Tenant Specialist Zoe Turner shares the story of what should have been a simple, lawful rent increase that turned into a two-year legal battle, draining public funds, testing the limits of housing law, and ultimately driving a good landlord out of the private rental sector entirely. This is a real case she dealt with in England, illustrating how far the current system has strayed from balance and common sense. The Landlord’s Attempt at Fairness Zoe’s client, a long-standing private landlord in England, hadn’t increased rent for several years. With costs rising and market rents shifting, she issued a reasonable and entirely lawful rent increase notice. This wasn’t an aggressive change; it was a small step to reflect current market conditions. Instead of engaging in discussion or negotiating, the tenant refused to pay the new rate, fell into arrears, and consequently was served a Section 8 notice under the Housing Act 1988 , initiating the legal process for repossession. What should have been a simple and reasonable step soon turned into a complex, emotionally draining legal battle and one that would test the limits of the current system. A Misused Disrepair Defence The tenant responded by raising a defence under the Homes (Fitness for Human Habitation) Act 2018 , alleging that the property was unfit due to mice, dampness and mould. However, this was the first time these issues had ever been mentioned. The tenant had not submitted complaints or requested maintenance before this point. On the contrary, the landlord’s multiple attempts to investigate were obstructed. Entry was denied to pest control professionals on several occasions. Eventually, when access was permitted, assessments found that the problems were caused by the tenant’s lifestyle, such as drying clothes indoors without ventilation, poor hygiene, food waste left around the flat, and blocked extractor fans. Environmental Health and the Improvement Notice Despite the landlord's ongoing efforts to resolve concerns, the tenant contacted Environmental Health. They issued an Environmental Health Improvement Notice , citing a damp corner in the basement and a mouse issue. Again, both the root of these issues are attributed to the tenant’s behaviour. Environmental Health did not investigate the origin of the problems or the tenant’s contribution to them. Nor did they consider the repeated obstruction of the landlord’s attempts to gain access for expert evaluation. This had serious consequences. Even though the eviction proceedings were brought under Section 8 rather than Section 21 , the Improvement Notice could still be used to support the tenant’s disrepair claim. Under the Homes (Fitness for Human Habitation) Act 2018 , rent is not lawfully due during any period the property is considered unfit. In this case, the tenant sought to have all rent arrears dismissed, despite never having previously reported the issues and having contributed substantially to the very conditions they cited. This misuse of the disrepair defence threatens the integrity of Ground 8 proceedings . Even where there is clear evidence of obstruction and tenant-caused issues, such claims can delay justice, drain public resources through legal aid and impose an unsustainable burden on responsible landlords striving to uphold their obligations. Legal Aid Misuse and Deliberate Delay Tactics The tenant’s legal team made additional allegations, such as the deposit not being protected and prescribed information not being served, seeking compensation of up to six times the original amount, despite clear evidence that all legal steps had been followed. These claims added further delay and complexity. What made this case especially galling was the tenant’s access to Legal Aid, which funded the tenant’s defence even though the case lacked merit. Public funds were used to support repeated, baseless applications and counterclaims, many of which were filed purely to prolong proceedings. This isn’t an isolated example. Many landlords now find themselves up against legally aided opponents, despite facing fabricated or exaggerated claims. It’s a pattern that’s growing and one that requires urgent reform. The Broken Court System The entire court process took nearly two years. Why? Because of meritless counterclaims, a sluggish court system, and systemic flaws in how possession proceedings are handled. Cases like this often take more than six months just to be listed. Eventually, her client won. She proved that she had met her legal obligations and had acted in good faith. But the victory came at a steep price. Emotionally exhausted and financially drained, the Landlord made the difficult decision to sell the property. Another responsible landlord lost to the system, not because she broke the law, but because the law no longer works for her. What This Case Tells Us About the State of Housing Law This wasn’t just about rent arrears. This was a battle over fairness, accountability and access to justice. Several key issues emerged: 1. Disrepair Defence Can Be Abused: The disrepair defence, which is intended to protect tenants from negligent landlords, is now being weaponised. In cases like this, where the tenant contributes to the problem, the law still leans in their favour. 2. Legal Aid Needs Proper Gatekeeping: We strongly support Legal Aid when used correctly. But the lack of oversight means many cases with no prospect of success are still fully funded, wasting valuable public resources. 3. The Courts Can’t Cope with Current Demand The civil courts are already struggling. And yet, the Renters Rights Bill proposes to remove Section 21 entirely, and introduce greater tenant protections, whilst adding regulatory complexity. These reforms might be justifiable if the judicial system were equipped to handle them, but it isn’t. Why This Matters to You If you’re a landlord , this case is a warning. Even when you follow the law, you can face prolonged legal challenges, reputational damage, and huge financial strain. If you’re a tenant , it’s a reminder that housing rights exist for a reason, but they should be used responsibly. Exploiting the law undermines its integrity and ultimately harms the wider rental market. If you're a policymaker , it’s time to listen. This isn’t about choosing sides, but it’s about designing a system that works. Specialist Advice for Landlords and Tenants from Woodstock Legal Services Whether you’re facing a Section 8 notice , a disrepair defence , or trying to understand your obligations under the Homes (Fitness for Human Habitation) Act 2018 , we’re here to help. Our experienced team can guide you through: Possession proceedings under the Housing Act 1988 Responding to an Environmental Health Improvement Notice Defending or pursuing disrepair claims Navigating proposed reforms under the Renters Rights Bill
DISCOVER MORE