Landlords and letting agents in England have a fresh reason to review how they explain permitted payments, holding deposits and guarantor arrangements to tenants. The government has updated its Tenant Fees Act 2019 guidance for tenants, adding new wording on guarantor agreements entered into before 1 May 2026.
The update is tenant-facing, but it matters for landlords because fee disputes often start with unclear paperwork or inconsistent explanations at the beginning of a tenancy. The guidance repeats the core rule that landlords and agents can only ask tenants for payments that are allowed under the Act. Anything outside that list risks being treated as a prohibited payment.
This is not a new charging regime, and landlords should not treat it as legal advice. It is a useful prompt to check that tenancy documents, adverts, applicant emails and agent processes still line up with the current government guidance, especially after wider tenancy reforms took effect from 1 May.
What the guidance says tenants can be charged
The GOV.UK guidance lists the main payments that can be required from a tenant. These include rent once a tenancy agreement has been signed, a refundable tenancy deposit, a refundable holding deposit, agreed utility or communication payments, a charge for a tenant-requested tenancy change, a payment where a tenant leaves without giving the correct notice, and limited default fees.
For most private tenancies, the deposit cap remains a key point. The guidance says the maximum tenancy deposit is up to five weeks’ rent where annual rent is below GBP50,000, or up to six weeks’ rent where annual rent is between GBP50,000 and GBP100,000. Holding deposits are capped at one week’s rent and are normally held for 15 days unless a different period is agreed in writing.
Default fees also need care. The guidance says any default fees expected from the tenant must be included in the tenancy agreement. It identifies replacement keys, security devices or fobs, and late payment of rent as the relevant examples. For late rent, interest can only be charged once the rent is at least two weeks overdue, and the rate is capped at 3% above the Bank of England base rate.
The guarantor wording is the newest change
The latest GOV.UK update, dated 7 July 2026, says new advice has been added for guarantor agreements entered into before 1 May 2026. The guidance says the terms of those agreements may be affected by tenancy reforms included in the Renters’ Rights Act.
It also says guarantors should consider reviewing existing agreements and obtaining the landlord’s consent to any variations that may be required. Where a tenant or guarantor is unclear whether an agreement is affected, the guidance says they may wish to seek independent legal advice.
For landlords, the practical takeaway is to avoid casual assumptions about older guarantor paperwork. If a tenancy has rolled on, been varied, moved into a new statutory framework or had a guarantor agreement signed before the May changes, it is worth checking that the documents still do what they are intended to do. A landlord using an agent should also ask how the agent is handling legacy guarantor wording.
Where disputes can arise
Fee problems are rarely just about the final invoice. They can begin earlier, when applicants are told they must pay for a service, insurance product, inventory, loan, deposit replacement product or professional guarantor arrangement as a condition of the tenancy.
The guidance is clear that tenants may choose to use some services, but a landlord cannot require a tenant to pay for a loan, pay for insurance or enter a service contract as part of the tenancy unless the payment is one the Act allows. It also says tenants can keep evidence, contact the local council, or apply to the First-tier Tribunal where they believe a prohibited payment has been requested or taken.
That enforcement route is the reason landlords should keep clean records. If a fee is permitted, the supporting paperwork should make that obvious. If a cost is higher than the usual cap for a tenant-requested tenancy change, the landlord should be able to explain and evidence why the higher amount is reasonable.
Checks landlords can make now
A sensible first check is the application journey. Look at the advert, holding deposit wording, applicant emails, referencing instructions and tenancy pack as a single process. The tenant should be able to understand which payments are required, what each payment is for, when money is refundable, and when it might be retained.
Second, check tenancy agreements for default fee wording. If replacement key costs or late-payment interest are not clearly set out, they may be harder to rely on later. The government guidance also says landlords must provide written evidence showing that replacement key or security-device costs are reasonable.
Third, review guarantor templates and older live arrangements. The new GOV.UK wording does not mean every older guarantor agreement has failed, but it does make this an area where landlords should be careful before relying on old wording without review.
Finally, keep this work alongside wider Renters’ Rights preparation. Here4 Landlords has already covered the new tenancy forms and information sheet, as well as Renters’ Rights penalties guidance. The common theme is simple: clear records, accurate documents and consistent tenant communications are becoming more important, not less.
Landlords who are unsure how the Tenant Fees Act or guarantor changes apply to a specific tenancy should use the official guidance as a starting point and take professional advice where needed.
