Scope: the Tenant Fees Act 2019 is England only. Wales has its own prohibition in the Renting Homes (Fees etc.) (Wales) Act 2019 — see the divergence map. Verified against the Act on 10 August 2026.
Almost every tenancy agreement written before 2019 contains a late payment clause that is now unlawful, and plenty written since do too.
The two conditions, both of which must be met
Under Schedule 1 of the Tenant Fees Act 2019, a charge for late rent is a permitted payment only if:
- the rent has been outstanding for 14 days or more from the due date, and
- the charge does not exceed interest at 3% above the Bank of England base rate, annualised, on the unpaid amount for the period it is unpaid.
Both. Fourteen days is a hard floor: a charge on day 3, day 7 or day 13 is prohibited however the clause is worded.
What that is worth in practice
It is interest, not a fee, and the arithmetic surprises landlords who expect a meaningful deterrent.
£1,000 of rent, 30 days late, base rate 4%: the permitted rate is 7% a year, so roughly £5.75. That is the ceiling, not a starting point.
The clause is not a revenue line. It exists so that persistent lateness has some consequence, and the real remedy for a serial late payer is Ground 11 — see rent arrears step by step.
What is prohibited
- A flat late payment fee — "£25 for late rent" — at any point.
- Any charge before day 14.
- Interest above 3% over base.
- Admin charges for chasing: letters, calls, "arrears management".
- Charging the guarantor a fee.
A prohibited payment must be repaid, and taking one attracts a financial penalty — up to £5,000 for a first breach, and up to £30,000 or prosecution for a repeat within five years. It also blocks possession until the payment is returned.
Two other defaults you may charge for
Lost keys
Permitted, but only for costs reasonably incurred and supported by evidence in writing given to the tenant. The invoice, not a standing figure. Charging more than actual cost is prohibited.
Contract variation
A capped payment where the tenant requests a change to the tenancy, subject to the Act’s limits.
Check your agreement
The clause is usually inherited from an old template. A prohibited term is unenforceable, and its presence is itself a problem: it evidences an intention to charge, and it is the first thing an enforcement officer reads.
Wales
The Tenant Fees Act 2019 does not extend to Wales. Welsh landlords are governed by the Renting Homes (Fees etc.) (Wales) Act 2019, which bans prohibited payments on its own terms — so a Welsh agreement citing the English Act is citing legislation that does not apply to it. See deposits in Wales.
Prohibited clauses are exactly what the checker finds. Upload your agreement — every finding cited to the Act and section.
Information tool, not legal advice.