Tenant fees ban takes effect

May 30, 2019

New rules for landlords and letting agents in England came into force on 1 June 2019, including a ban on letting fees and a cap on holding and tenancy deposits.

The Tenant Fees Act has now made it illegal to charge tenants any fees aside from rent, deposits, and other necessary costs.

The Government's impact assessment, published in May 2018, said the policy is likely to cost landlords £82.9 million in its first year, while letting agents will need to absorb £157.1m.

Under the new legislation, tenancy deposits are capped at five weeks' rent where the annual rent is less than £50,000, or six weeks' rent where the total annual rent is £50,000 or above.

Holding deposits for reserving a property are also capped at no more than one week's rent. Both tenancy and holding deposits must be refundable.

It is still legal to charge fees for a change or termination of a tenancy if the tenant has requested to do so, or default fees for late payment or rent or replacement of a lost key.

Other acceptable fees include those for utilities, communication services, TV licence and council tax.

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