The Tenant Fees Act came into force on 1 June 2019, banning all tenant fees charged by agents and landlords except ‘permitted’ fees including rent, security deposits, holding deposits, early termination and some default fees.
TENANT FEES ACT
The Tenant Fees Act sets out the Government’s approach to banning letting fees for tenants. The key measures of the Act include:
- Tenancy Deposits must not exceed the equivalent of five weeks’ rent (unless the annual rent exceeds £50,000 in which case deposits are capped at six weeks’ rent).
- Holding Deposits will be capped at no more than one week’s rent.
- The amount that can be charged for a change to a tenancy will be capped at £50 unless the landlord demonstrates that greater costs were incurred.
- The Consumer Rights Act 2015 is amended to specify that the letting agent transparency requirements should apply to third-party websites.
Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:
- A change or early termination of a tenancy when requested by the tenant.
- Utilities, communication services and Council Tax.
- Payments arising from a default by the tenant where they have had to replace keys or a respective security device, or a charge for late rent payment (not exceeding 3% above the bank of England base rate).
A breach of the fees ban will be a civil offence with a financial penalty of up to £5,000.
Information from ARLA PROPERTYMARK