Government Updates the Tenant Fees Act: What Landlords Need to Know

This month, the UK government quietly issued a detailed update to the Tenant Fees Act (TFA) 2019 in a move designed to clarify compliance in line with the Renters Rights Act. While the changes are described as minor, they are essential for landlords who want to avoid enforcement issues and ensure tenancy agreements are fully compliant.

This update is not about introducing new provisions. Instead, it provides guidance on how existing rules interact with certain costs, such as Council Tax and TV licences, and helps align TFA enforcement with the latest legislative framework.

Understanding the Tenant Fees Act

The Tenant Fees Act was introduced to protect tenants from excessive or hidden charges. Under the Act, landlords and letting agents may only request “permitted payments,” such as rent, deposits, holding fees and certain default charges. Any other payments are prohibited and can lead to financial penalties, restrictions on serving possession notices and reputational damage.

The latest December 2025 update, which seeks to align the Act with the Renters Rights Act, does not alter these core rules. Instead, it clarifies how certain fees and associated costs should be treated, reducing potential confusion and disputes.

What the December 2025 Update Changes

One of the most significant clarifications concerns utilities and other tenant responsibilities. The revised guidance now explicitly includes Council Tax and TV licence payments in the “Utilities and other bills” category. Landlords cannot treat these as additional chargeable fees, but the update ensures that their treatment under the TFA is clear and consistent.

Another practical adjustment is the updated guidance regarding possession procedures. A new form and clearer wording explain what happens if tenants fail to comply with a possession order. This ensures that enforcement actions under the TFA do not conflict with the forthcoming provisions of the Renters Rights Act.

These updates may seem minor, but they remove ambiguity and prepare landlords for a smoother transition into 2026, when broader reforms take effect.

Preparing for the Renters Rights Act

The Renters Rights Act, which received Royal Assent in October this year, introduces sweeping changes to the private rented sector. Among the most notable reforms, set to take effect from May 2026, are the abolition of Section 21 “no-fault” evictions, the move toward periodic tenancies and stronger tenant protections.

By updating the Tenant Fees Act guidance now, the government ensures that fee rules, tenancy management and enforcement mechanisms remain consistent with the upcoming reforms. This alignment reduces the risk of compliance errors and ensures landlords are better prepared for the new regulatory environment.

Compliance Implications for Landlords

Although no immediate changes are legally required, landlords should treat this update as a prompt to review their practices. Key areas to check include tenancy agreements, how utility costs and Council Tax are addressed, and internal procedures for handling possession and enforcement.

It is important to remember that the underlying fee ban remains in force. Landlords cannot introduce new charges and local authorities continue to enforce breaches of the Tenant Fees Act with fines of up to £5,000 for a first offence and unlimited penalties for repeat violations.

Why This Update Matters

This Tenant Fees Act update is a strategic move by the government to ensure clarity and consistency in the private rental sector ahead of the Renters Rights Act coming into force. It is also a reminder that the regulatory landscape is evolving and that landlords who proactively adapt will be in a stronger position to manage their properties and tenancies efficiently.

By understanding how today’s TFA guidance aligns with the Renters Rights Act, landlords can avoid unnecessary penalties, streamline tenancy management and confidently navigate the transition into the new legal framework.

Conclusion

The December 2025 update to the Tenant Fees Act may appear minor, but it plays a crucial role in clarifying landlord and tenant responsibilities ahead of the Renters Rights Act reforms coming into effect in May 2026.

By understanding these changes, landlords can ensure compliance, avoid penalties and manage tenancies more efficiently. Staying informed now is the best way to prepare for the broader legal and operational shifts coming to the private rented sector, safeguarding both your business and your tenants’ rights.