I want to walk you through this clearly because the landscape for what can and cannot be charged has changed significantly in the UK, and knowing the current rules prevents you from overpaying fees that are either banned or inflated.
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What Fees Are Currently Legal in England
The Tenant Fees Act 2019 dramatically simplified what landlords and letting agents can charge tenants in England. The permitted payments are your rent, a tenancy deposit capped at five weeks' rent for annual rents under £50,000, a holding deposit capped at one week's rent, and default charges such as late payment fees or costs for replacing a lost key. That is the complete list of permitted charges.
Referencing fees, credit check fees, administration fees, inventory fees, and application fees are all banned for assured tenancies in England. If a private landlord or letting agent asks you to pay any of these, they are breaking the law. You are entitled to refuse payment and report the charge to your local trading standards authority.
This is genuinely important for your budgeting because many students still pay these charges simply because they do not know they are banned.
What PBSA Can Still Charge
Purpose-built student accommodation operating under license agreements sits in a slightly different position. PBSA providers may charge a booking fee or application processing fee in some cases, though the practice varies between providers and the specific legal basis depends on the contract type.
I would specifically ask any PBSA provider for a complete written list of all charges at the point of application before paying anything. The total upfront cost of a PBSA booking typically includes a booking or application fee ranging from zero to £50 depending on the provider; the security deposit ranging from £200 to £500 as a flat amount; and sometimes a first week or first month advance payment that is credited against your first rent installment.
Building Your Upfront Cost Budget
I would construct your upfront cost budget across four categories to ensure nothing surprises you.
The holding deposit is your first outgoing, capped at one week's rent for private rentals in England. For a room at £700 per month, this is approximately £162. This should be credited against your first rent payment or deposit when you complete the tenancy.
The security deposit follows once your tenancy is confirmed. For private rentals, this is capped at five weeks' rent. For PBSA, it is typically a flat amount between £200 and £500. Have this available as a separate fund from your monthly rental budget.
Your first rent payment is typically required before or on the day you move in. Under the Renters' Rights Act 2026, landlords cannot ask for more than one month's advance rent. Budget one full month's rent as an immediate upfront cost on top of the deposit.
Setup costs for a private rental include any items not provided by the property, such as bedding, kitchenware, and basic cleaning supplies, typically £100 to £300 for a student moving into an unfurnished or partially furnished property.
Red Flags That Should Prompt Immediate Concern
Any charge described as an admin fee, referencing fee, credit check fee, or inventory fee in a private rental context in England is banned and should not be paid. Any charge that appears after you have already signed but before you have moved in that was not listed in your original contract is worth questioning formally in writing before paying. Any deposit request above the legal cap is unlawful and must be returned.
Budgeting for International Differences
If you are renting in countries outside England, the fee landscape differs. In Scotland, similar tenant fee protections apply, though with some differences. In the USA, application fees of $25 to $75 per person are standard and legal. In Germany, the Kaution deposit is up to three months' cold rent, which requires substantially more upfront budgeting than the UK's five-week cap. In Italy, a one-to-three-month deposit is typical, with agent commission often adding another month's rent.
I would research the specific fee structure in your destination country before beginning your accommodation search so that your upfront budget reflects local norms rather than UK assumptions.
Frequently Asked Questions
Are application fees for student accommodation legal in England?
No. Application fees, admin fees, referencing fees, and credit check fees are all banned under the Tenant Fees Act 2019 for private rentals in England. You are not legally required to pay them.
How much should I budget for moving into student accommodation?
For a typical private rental in England, budget one week's rent as a holding deposit, five weeks' rent as a security deposit, one month's rent as an advance payment, and £100 to £300 for setup costs. Total upfront spend is approximately two to three months' equivalent rent value.
Can PBSA providers charge application fees?
Some do. Ask for a complete written list of all charges at the point of application before paying anything. The total should be clearly itemized and agreed upon before you commit.
What should I do if a landlord charges a banned fee?
Refuse to pay it, note it in writing, and report it to your local trading standards authority. You are entitled to the return of any banned fee you have already paid.
Is the deposit refundable if I decide not to proceed?
A holding deposit is refundable unless you withdraw from the tenancy, provide false information, or fail right-to-rent checks. A security deposit is returned at the end of the tenancy minus legitimate deductions.
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Key Takeaways
- Admin fees, referencing fees, credit check fees, and application fees are all banned for private rentals in England under the Tenant Fees Act 2019.
- Permitted upfront costs are the holding deposit capped at one week's rent, security deposit capped at five weeks' rent, and advance rent capped at one month under the Renters' Rights Act 2026.
- Budget approximately two to three months' equivalent rent value in total upfront costs for a private rental in England.
- PBSA may charge some application or booking fees. Always request a complete written list of all charges before paying anything.
- Fee structures differ significantly between countries. Research your specific destination's norms before beginning your search.