Changes in Legislation from June 2019 onwards
The Tenant Fees Act 2019 bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England.
The ban on tenant fees applies to new or renewed tenancy agreements (new fixed term contracts) signed on or after 1 June 2019.
The government guidance on the Act for tenants, landlords and letting agents helps explain this legislation in detail.
The aim of the Act is to reduce the ‘up-front’ costs that tenants can face at the outset of a tenancy. Tenants must be able to see, at a glance, what a given property will cost them in the advertised rent with no hidden costs.
From 1 June 2019, the only payments that landlords or letting agents can charge to tenants in relation to new contracts are:
- rent
- 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 capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
- payments in respect of utilities, communication services, TV licence and Council Tax
- a default fee for late payment of rent or a request for replacement of a lost key/security device giving access to the property where required under a tenancy agreement
In addition, there are transitional arrangements to the 31/5/2020, for tenancies commencing before the 1/6/2019. If you are not sure how this legislation will affect you or would like to have a no obligation chat with our experienced Lettings team to understand your situation further please get in touch to arrange a call or face to face meeting.
More legislation for 2024!
Warwick district Council have introduced additional licensing for all HMO properties from the 18/1/2024. If you are unsure how this may affect you, please give Anthony a call on 01926 658204
Pending! Renters Reform Bill
This is the Governments flagship bill to enhance tenants rights and remove the landlords ability to regain possession through the section 21 notice. More on this once the bill becomes law.
