The Tenant Fee Act is now in force from the 1st June 2019.
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.
You can see all the government guidance on the Tenant Fee Act by clicking here.
New How to Rent Guide and Section 21 Form
It’s also worth noting that the government released a new updated version of the Right to Rent Guide as well as a new Section 21 Form to factor in changes from the Tenant Fee Act.
So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.