Are There Really No-Fee Rentals Left in London? Truth

The Tenant Fees Act 2019 banned letting fees in England — or so the headlines said. Yet London renters still encounter “admin fees,” “referencing charges” and “check-in fees” with depressing regularity. So are there really no-fee rentals left in London, or has the industry just renamed the charges? The truth is encouraging: genuine no-fee renting is now the legal norm — but you need to know exactly what landlords and agents can still charge.

What the Tenant Fees Act actually banned

Since 1 June 2019, landlords and letting agents in England cannot charge tenants for: tenancy setup or referencing, check-in or check-out inspections, guarantor arrangements, professional cleaning (as a required service), or any “admin” fees. The ban covers virtually everything except a short list of permitted payments. Breaches are enforceable — tenants can recover unlawful fees through the council or the First-tier Tribunal, and agents face fines up to £5,000 per breach.

This was a genuine revolution: before the ban, London renters routinely paid £300–£600 in fees per tenancy. The gov.uk guidance on tenant fees sets out the rules plainly — bookmark it, because you will need it.

What they CAN still charge

The permitted payments are narrow but real: rent, a refundable tenancy deposit (capped at 5 weeks’ rent where annual rent is under £50,000), a refundable holding deposit (capped at 1 week’s rent), payments for early tenancy termination (at the tenant’s request), utilities and council tax (if the tenancy requires it), TV licence, and default fees — but only for late rent payment (capped: 3% above Bank of England base rate on rent 14+ days overdue) and lost keys/security devices (reasonable costs only, with evidence).

Note what is not on the list: cleaning fees, inventory fees, “contract preparation,” pet deposits (banned as separate charges — though landlords can raise rent for pets), and any charge for a guarantor. If an agent demands payment for something not on the permitted list, it is unlawful. Shelter’s fee checker is the fastest way to verify a specific charge.

How fees survive in disguise

The ban did not end sharp practice; it relocated it. Watch for: inflated “default” charges (a £150 “key replacement” fee for a £5 key cut — challenge it, as reasonableness is required), mandatory “optional” services (cleaning presented as a choice but pressured in practice), rent hikes disguised as fee recovery (some agents raised rents to recoup lost fee income — legal but worth negotiating), and deposit deductions at checkout that function as backdoor fees (challenge unreasonable deductions via the deposit protection scheme).

Pet owners face a grey area: separate pet deposits are banned, but landlords can charge higher rent for pets or require pet insurance. The Renters’ Reform changes strengthen tenants’ right to request pets — landlords cannot unreasonably refuse. Know your full tenant rights before the pet conversation.

Finding genuinely no-fee rentals

The good news: compliant no-fee renting is now standard among reputable agents and most private landlords. OpenRent and direct-landlord listings are inherently no-fee (no agent in the chain). Large corporate agents comply visibly — their fee structures are audited and public. The risk concentrates in small, unregulated operators and Gumtree/Facebook listings where “admin fees” still appear.

Red flags: any fee demanded before you have seen the tenancy agreement, fees described vaguely (“move-in costs” without breakdown), pressure to pay holding deposits before viewing, and agents who cannot explain which permitted payment a charge falls under. A legitimate agent answers the question instantly; a chancer gets evasive. Citizens Advice can confirm whether a specific charge is lawful before you pay.

What to do if you are charged illegally

Do not just pay and fume. Steps: (1) Ask for the charge in writing with its legal basis. (2) Point to the Tenant Fees Act and request its removal. (3) If refused, pay under protest (get a receipt — you need the tenancy) and then reclaim: first from the agent/landlord in writing, then via your council’s trading standards team, then the First-tier Tribunal. Tenants routinely win these cases, and agents know it — most fold at step 2.

Keep every email, receipt and listing screenshot. The paper trail is what wins at Tribunal. And check your deposit is protected while you are at it — non-compliant agents often fail on multiple obligations simultaneously.

The holding deposit trap

Holding deposits (max 1 week’s rent) are the most abused permitted payment. Rules: the agent must refund it within 7 days if they do not proceed (unless you provided false information or withdrew), it must count toward your first rent or deposit if you proceed, and they cannot demand more than a week’s rent. Agents who “keep” holding deposits without proper grounds are breaking the law — challenge it immediately.

Never pay a holding deposit before viewing the property and meeting the agent. And get the terms in writing: what happens to the deposit in each scenario. Verbal assurances about holding deposits are worthless.

Renewals and rolling tenancies: the forgotten fee zone

Some agents attempt to charge “renewal fees” when fixed terms end — these are banned too. If your tenancy goes periodic (rolling month-to-month), no new agreement is needed and no fee can be charged. If the agent insists on a new fixed-term contract, they cannot charge you for preparing it. Many renters pay renewal fees out of habit or intimidation; the law is unambiguous, and the fee is recoverable.

The same applies to “check-out” or “inventory” fees at the end of a tenancy — banned. The landlord can propose deductions from your deposit for damage (challenge unreasonable ones through the deposit scheme), but cannot charge a separate fee for the inspection itself. Every stage of the tenancy is covered by the ban; there are no gaps for fees to hide in.

Conclusion

Yes — no-fee rentals are the legal norm in London, not the exception: the Tenant Fees Act banned virtually all letting fees, leaving only rent, capped deposits, and a narrow list of permitted payments. The battle now is against disguised fees and sharp practice at the margins. Know the permitted list, challenge anything else in writing, and reclaim unlawful charges through the council or Tribunal. The law is on your side — use it.

Frequently Asked Questions

Are letting agent fees banned in London?

Yes — the Tenant Fees Act 2019 banned almost all fees charged to tenants in England, including referencing, check-in and admin fees. Only rent, capped deposits and a short list of permitted payments are lawful.

What fees can a landlord legally charge in 2026?

Rent, a tenancy deposit (max 5 weeks’ rent), a holding deposit (max 1 week’s rent), and limited default fees for late rent or lost keys. Everything else — cleaning fees, admin charges, guarantor fees — is banned.

Can I get illegal letting fees refunded?

Yes — request repayment in writing, then escalate to council trading standards or the First-tier Tribunal. Tenants routinely win; keep all receipts and correspondence as evidence.

Are pet deposits legal in the UK?

No — separate pet deposits are banned under the Tenant Fees Act. Landlords can charge higher rent for pets or require pet insurance instead, and cannot unreasonably refuse pet requests under the new rental reforms.