Under The Tenant Fee Act 2019, tenants can only be charged for certain things throughout the lettings process. Tenants cannot be charged for:
Tenants can be asked to pay:
A holding deposit
Tenants will pay a holding deposit when they apply to rent the property. This financial commitment acts as a 'reservation' of the property. The holding deposit can be no more than one week's rent.
If everything is successful, the holding deposit amount will be deducted from the tenant's first month's rent.
If the tenant proceeds to the next step and fails their reference checks or withdraws from the application, their holding deposit may be kept to cover the costs.
Holding deposits are not charged for properties in Scotland.
A tenancy deposit
Before moving into a property, tenants must pay a tenancy deposit. This deposit is capped at 5 weeks' rent for annual rents under £50,000 and 6 weeks' rent for annual rents above £50,000. Tenancy deposits must be registered with a government-approved tenancy deposit scheme and are returned to the tenant at the end of the tenancy.