Tenant referencing for landlords in England
A landlord in England cannot charge a tenant for a reference or a credit check. The Tenant Fees Act 2019 bans a payment for providing a reference. Only listed payments are allowed. The landlord pays for the check. A holding deposit is capped at one week's rent.
Tenant Fees Act 2019 · Checked on 23 Oct 2026
Payment caps and penalties
RULES AT A GLANCE| Rule and threshold |
|---|
| Holding deposit: one week's rent maximum. Excess is prohibited. A holding deposit reserves the property; the cap still applies during referencing. |
| Holding deposit refund: within 7 days in the circumstances below. The repayment rule covers signing, landlord withdrawal and expiry without agreement. |
| Tenancy deposit: five weeks below £50,000 annual rent; six weeks at £50,000 or above. Taking a tenancy deposit is optional. |
| Rent before signing: prohibited since 1 May 2026. After signing, the usual cap before commencement is one month, or 28 days for non-monthly rent. Both parties must sign before rent is requested or accepted. |
| Banned payment: up to £5,000 first breach; prosecution or up to £30,000 for a repeat within 5 years. These are council penalties. |
| Discrimination and rental bidding: each carries up to £7,000; both regimes started on 1 May 2026. |
| Time-limited Right to Rent: check no earlier than 28 calendar days before agreement. |
| Right to Rent civil penalties: lodger £5,000 first / £10,000 repeat; occupier £10,000 first / £20,000 repeat, within a 3-year window. |
All table thresholds: Checked on 23 Oct 2026.
Can a landlord charge for a reference?
No. You cannot charge for providing a reference or pass a credit-check fee to the tenant. Under the Tenant Fees Act 2019, a payment is prohibited unless the permitted-payment list allows it.
Which payments are allowed?
- Rent.
- A tenancy deposit or holding deposit, within the caps above.
- Change-of-tenancy and early-exit payments.
- Utilities, council tax and communication services.
- Late-rent and replacement-key fees.
These categories have conditions. The government fees guide sets them out; the list does not authorise a referencing charge.
What is the holding deposit cap?
The cap is one week's rent. Any excess is a prohibited payment. Checked on 23 Oct 2026.
When is the holding deposit repaid?
Repay it within 7 days when the agreement is signed, you withdraw, or the deadline passes without agreement. Checked on 23 Oct 2026.
The fees guide permits retention only for a failed Right to Rent check, applicant withdrawal, failure to respond or progress the tenancy, or false or misleading information affecting suitability.
What is the tenancy deposit cap?
The annual-rent threshold determines the cap shown above. You do not have to take a deposit. If you take one, you must protect it in a government-approved scheme.
Can rent be taken before the agreement is signed?
No. You and your agent must not ask for, encourage or accept rent before both parties sign. The post-signing cap above is the usual limit. Council homelessness arrangements and social or supported housing have different rules: check the government tenancy guide. See also tenancy agreements.
What is the penalty for a banned fee?
The council's limits are in the table. A repeat breach can result in prosecution for a banning order offence. See the fees guide and our guide to other rental penalties.
Can a landlord refuse tenants with children or on benefits?
You cannot disadvantage applicants because they have children or receive benefits. The ban also covers your agent and referencing service. You can assess affordability, but must count benefits in the same way as other income.
There is no legitimate-aim exception for benefits. The narrow exception for children requires justification: read the government discrimination guidance.
Can a landlord accept more than the advertised rent?
No. Neither you nor your agent can invite, encourage or accept an offer above the advertised rent. A written advert must state a specific amount, without a range. See the rental-bidding prohibition.
Who needs a Right to Rent check?
Check every adult whose only or main home will be the property, regardless of nationality. Routes are original documents, a registered Digital Verification Service or an online share code.
For time-limited rights, follow the timing above and repeat the check before the statutory excuse expires if the person remains. A statutory excuse is protection against a civil penalty. Follow the Home Office guide.
Does an ordinary reference count as Right to Rent?
Referencing, identity verification and credit checks do not establish a statutory excuse unless conducted in accordance with that Home Office guidance.
What are the Right to Rent penalties?
The civil penalties in the table follow the Code of Practice dated 1 Oct 2026. For the checking routes, see the checking page updated 11 Dec 2024. Checked on 23 Oct 2026.
Knowingly renting to a disqualified person also carries criminal sanctions under the Immigration Act 2016.
General information, not legal advice. Laws and dates change. Check the Act before you act.
Prepared by PRS Guide.