Banning Letting Fees: Inside the Draft Tenant Fees Bill
The Government has published a draft Bill that would ban most fees charged to tenants by landlords and letting agents — the first major shift in private-rented-sector regulation in a generation.
Lucid Legal, a UK law firm which is clear, commercial and committed. Today we are reviewing the banning of letting fees and getting insight into the draft Tenant Fees Bill. From the very first proposals, the rules on what agents and landlords can charge tenants have been tightening — and getting them wrong is costly. Lucid Legal helps estate agents and landlords stay the right side of every change. Lucid Legal, a UK law firm which is clear, commercial and committed.
What the draft Bill proposes
The draft Tenant Fees Bill would prohibit landlords and agents in England from charging tenants for services such as referencing, inventories and renewal administration.
Permitted payments would be limited to rent, a capped tenancy deposit, a holding deposit, and charges for defaults such as lost keys or late rent.
Why it matters
For letting agents whose revenue model depends on tenant-side fees, the Bill signals a structural change: those costs will have to be absorbed, restructured into landlord fees, or recovered through rent.
It is also the opening move in a wider direction of travel — a private rented sector that is progressively re-regulated in the tenant's favour.
If you are an agent, now is the time to model the revenue impact of losing tenant fees and to review your tenancy agreements. Landlords should expect agent fee structures to change.
Need advice on how these changes affect your portfolio or agency?
Speak to a Specialist — [email protected]Lucid Legal · SRA Regulated · No. 8011100 · This article is general commentary and not legal advice.