New Tenant Fees Act 2019
At Belvoir Ipswich, we introduced the changes from the 1st May 2019, to ready our team and ensure we were compliant from the first day of the new procedures in place.
Whilst the Government had set out this Act in the Autumn Statement of 2016, we are finding a lot of tenants and landlords are still, very much, in the dark with regards to the changes.
1st June 2019 was introduced for all new tenancies
1st June 2020 will be introduced for all existing tenancies
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.
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.
To discuss the contents of this article please call our team on 01473 212323 or email firstname.lastname@example.org