The Ministry of Housing, Communities and Local Government has released new guidance on the Tenant Fees Act, aligning it with the Renters’ Rights Act and clarifing how issues such as Council Tax and TV licence payments should be treated ahead of the first phase of changes due in May 2026.
The update is the latest in a series of Government guidance updates on the Renters’ Rights Act. They include official implementation timelines, practical guidance for landlords and agents on new restrictions such as rent bidding bans, and set out how the reforms will operate in practice.
Areas of confusion
This update provides clarification on two areas that have caused confusion in the sector.
It gives landlords some clarity on the handling of Council Tax and television licence payments. It explains that Council Tax payments can be included with the rent when it has been stipulated in the tenancy agreement, or tenants can make direct payments to the relevant local authority. However, landlords and agents cannot require tenants to pay Council Tax as a separate, additional payment.
The same rules apply to TV licences. Landlords can either include the cost within the rent if agreed, or the tenants must obtain their own licence. Charging tenants a separate TV licence payment directly to the landlord is prohibited.
Prohibits profiteering
These provisions align with the existing framework for utilities, which allows costs to be included within rent but prohibits landlords from profiting from reselling services.
The guidance applies from 1 May 2026, when phase one of the implementation of the Renters’ Rights Act provisions comes into effect.
You can read the full Tenant Fees Act guidance document here and the more general guidance document here, which includes Council Tax and TV licensing payment information here.
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