Aimed at reducing the costs that a tenant faces for their tenancy, it also shows tenants what the advertised rent includes for their chosen property with no hidden extras.
What is the Tenant Fees Ban?
The Tenant Fees Ban has three main points:
- Bans most letting fees
- Caps tenancy deposits paid by tenants
- Ensures Landlords/Letting Agents have provision for client money protection
What can a Landlord charge?
From 1 June 2019, the only payments that landlords or letting agents can charge to tenants for new contracts are:
- A refundable tenancy deposit capped at:
- no more than 5 weeks’ rent where the total annual rent is less than £50,000, or
- 6 weeks’ rent where the total annual rent is £50,000 or above
- A refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
- Payments associated with early termination of the tenancy, when requested by the tenant
- Payments in respect of utilities, communication services, TV licence and Council Tax
- A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement
The Tenant Fees Act was made law in February 2019 and, as of 1 June 2019, is currently applicable to properties in England only.
The full Act can be accessed on the Parliament website.