Letting agent rules in England: what the law requires

Which schemes must a letting agency belong to?

Every business doing lettings or property management work in England must belong to a government-approved redress scheme. There are two: The Property Ombudsman and the Property Redress Scheme. If a landlord or tenant cannot settle a complaint with you, they take it to your scheme. Trading without membership can bring a penalty of up to £5,000, issued by the local council or by the National Trading Standards Letting Agency Team, which Bristol City Council runs.

If you hold clients' money, such as rent or deposits waiting to be paid out, you must also join an approved client money protection scheme. That money has to sit in an account with a bank or building society authorised by the Financial Conduct Authority. You must display your membership certificate in each office open to the public and on your website, and hand a copy to anyone who asks, at no charge. Failing to join can cost up to £30,000. Failing to display or supply the certificate can cost up to £5,000.

What can you charge a tenant?

The Tenant Fees Act 2019 bans every tenant payment that its Schedule 1 does not expressly allow. The allowed list is short: rent once the tenancy agreement is signed, a late rent fee, the cost of replacing a lost key or security device, a fee of up to £50 (or reasonable costs above that) for a tenant-requested change to the tenancy, a payment when the tenant asks to end the tenancy, utilities and landline costs, a refundable tenancy deposit and a refundable holding deposit.

The holding deposit cannot exceed one week's rent. By default the tenancy agreement must be signed within 15 days of you receiving it. The tenancy deposit is capped at five weeks' rent where annual rent is under £50,000 and six weeks' rent at £50,000 or more. Late rent fees can only start once rent is 14 days overdue, and interest cannot exceed 3% above the Bank of England base rate. Councils can fine up to £5,000 for a first breach and up to £30,000, or prosecute, for a repeat within five years.

Right to Rent and deposit protection

Under the Home Office scheme, landlords and their agents in England must check that every adult who will live in the property as their main home has the right to rent, whatever their nationality, before the tenancy starts. If a landlord hands this job to you in a written agreement, you carry any civil penalty. Keep a clear copy of the evidence and the date of the check for the whole tenancy and at least one year after it ends. Occupiers with time-limited permission need follow-up checks.

Any deposit taken for an assured periodic tenancy must go into a government-backed scheme within 30 days of payment. In England the schemes are the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. Each scheme lets the deposit be held by the scheme free of charge, or held by you or the landlord with the scheme insuring it. Deductions at the end of a tenancy need evidence.

What has the Renters' Rights Act changed?

Phase 1 took effect on 1 May 2026, and agents acting for landlords must follow it too. Section 21 'no fault' evictions are gone. Most private tenancies are now assured periodic tenancies, which tenants can end with two months' notice. Rent can rise only once a year, with at least two months' notice. Adverts must state a price, and you cannot invite or accept bids above it. You can take no more than one month's rent between signing and the start date. Refusing tenants because they have children or receive benefits is now illegal.

Phase 2, from late 2026, brings a compulsory database of private rented properties, which will record gas, electrical and energy performance certificates, plus a landlord ombudsman that landlords must join. Phase 3 will apply Awaab's Law and a new Decent Homes Standard to private renting, on dates still to be confirmed. Councils can now impose civil penalties of up to £40,000 for breaches of the new rules. No qualification or personal licence is part of any duty listed here, though employers often ask for one.

Pay

United Kingdom

£27,500–42,700

London

£32,700–50,700

South East

£27,600–42,800

North West

£25,800–39,900

North East

£24,200–37,500

GBP a year, before tax. Ranges run from the 25th to the 75th percentile for lettings jobs, based on the ONS Annual Survey of Hours and Earnings, April 2026 (provisional), brought up to date with a wage index. Regional figures are modelled. UK median is £32,500. Commission, seniority and whether you handle property management move the figure. Refer to the Lettings salary guide for figures from live adverts.

What you need

Redress schemeJoin The Property Ombudsman or the Property Redress Scheme before you do any lettings or property management work. Penalty up to £5,000.
Client money protectionRequired if you hold clients' money. Use an FCA-authorised bank account, and display the certificate in each office and on your website.
Tenant Fees ActTake only the payments Schedule 1 allows. Holding deposit up to one week's rent, tenancy deposit up to five or six weeks' rent.
Right to Rent checksCheck every adult occupier before the tenancy starts. Keep the records for the whole tenancy and one year after it ends.
Deposit protectionProtect any tenancy deposit in a government-backed scheme within 30 days of receiving it.
Renters' Rights ActFollow the May 2026 rules on periodic tenancies, rent increases, bidding, rent in advance and discrimination. Penalties go up to £40,000.
QualificationNone of these legal duties needs a qualification or personal licence. Membership bodies and employers set their own standards.

Across the UK

England	Redress and client money protection are both compulsory, with the Tenant Fees Act, Right to Rent and the Renters' Rights Act on top.
Wales	Letting agents must also belong to a redress scheme, and must join a money protection scheme before applying for an agent licence through Rent Smart Wales.
Scotland	Scotland has its own rules on client money and professional indemnity insurance, tied to letting agent registration.
Northern Ireland	Agents do not have to join a client money protection scheme.

How to get there

Before tradingJoin the schemesJoin a redress scheme and, if you will hold client money, a client money protection scheme. Display the certificates.
MarketingAdvertise lawfullyState a rent figure in every written advert. Do not invite or accept bids above it, and do not turn away families or people on benefits.
Offer stageTake a holding depositTake no more than one week's rent. The agreement should be signed within 15 days unless a different deadline is agreed.
Before move-inCheck and signComplete Right to Rent checks on all adults and give the required written tenancy information. Take no more than one month's rent before the start date.
Within 30 daysProtect the depositRegister the deposit, capped at five or six weeks' rent, with a government-backed scheme.
During tenancyManage the tenancyRaise rent no more than once a year with two months' notice, run follow-up Right to Rent checks where needed and charge only permitted fees.

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Questions people ask

Do you need a qualification to be a letting agent in England?

The legal duties are scheme memberships and rules on how you deal with tenants and money. None of them requires a qualification or personal licence. Many employers and membership bodies such as ARLA Propertymark set their own entry standards.

Can a letting agent charge a tenant a referencing or admin fee?

No. The Tenant Fees Act bans any tenant payment not listed in Schedule 1, and referencing and admin fees are not on that list. A first breach can bring a penalty of up to £5,000.

Who is liable if a Right to Rent check goes wrong, the agent or the landlord?

The landlord is liable unless they have passed the checks to the agent in a written agreement. Once that is done, any civil penalty falls on the agent, and liability cannot be passed further down the line.

How much rent can an agent take up front now?

Since 1 May 2026, up to one month's rent between everyone signing the tenancy and the start date. You cannot take rent before signing, and once the tenancy has started you cannot demand rent before it is due.

Will the new landlord ombudsman replace an agent's redress scheme?

The landlord ombudsman planned for Phase 2 will be compulsory for landlords. Agents still have to belong to The Property Ombudsman or the Property Redress Scheme under the existing redress rules.

What happens if an agent does not join a client money protection scheme?

A letting or property management agent in England that holds client money without membership can be fined up to £30,000. Failing to display the certificate or supply it on request can bring a separate fine of up to £5,000.

What rules must letting agents follow in England?