Royal Thumbs Up For Tenants Fees Ban

17th Feb 2019

The Royal Assent has just been granted to the Tenant Fees Bill that will ban agents and landlords from charging tenants certain fees starting June 1st 2019.

The Act will prohibit agents and landlords from charging fees when setting up a new or renewing an existing tenancy in the private rented sector.

As well as implementing a ban on lettings fees, the Act has ruled that a cap will be introduced on security deposits for prospective tenants which will be no more than the equivalent of five weeks' rent.

From June 1st Holding Deposits will also be capped to the equivalent of one week's rent.
The government's intention is to make it easier for tenants to rent homes in England by introducing caps on deposits and reducing fees considerably, far more affordable, it also believes that the market will become more competitive and far more transparent.

The new Act will make it mandatory that agents or landlords will not be able to charge any more than £50 for a changing a tenancy or be fined £5,000 for breaching the new rules.

The Housing and Communities Secretary, James Brokenshire, said: "Tenants across the country should not be stung by unexpected costs from agents or landlords.

"This Act not only delivers on our promise to ban letting fees but also caps deposits at 5 weeks’ rent and sets out how and when landlords can charge tenants fees – helping renters keep more of their hard-earned cash. This is part of our ongoing action to make renting fairer and more transparent and make a housing market that works for everyone."

A spokesperson for an industry trade body, commented: "We’ve known the tenant fees ban has been coming for a long time, but with only 109 days to go until it comes into force, the industry must start taking time to prepare.

"The government will soon publish its guidance now that we have legislative certainty, which will give agents a better understanding as to how the ban should practically be implemented