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The highly debated Tenant Fees Ban is now effective

Tenant Fees Act 2019 ( the Act)

1st June 2019 was the day it became the law in England to ban all fees charged to tenants (besides default fees such as key replacement, utilities and council tax-if agreed in tenancy agreement and etc) applying to all tenancy agreements signed after 1st June. Currently live in England and Scotland and due to take effect in Wales during Autumn.

What does that mean for Agencies?

Agents must ensure all listings after the 1st June are updated in accordance with the new legislation to meet all requirements of the act. Failure to do so can result in breaching the Act and a fine, and prosecution if persistent breach.

From 1 June, the only costs landlords and agents will be able to charge tenants for will be:

  • · A refundable holding deposit to reserve the property equivalating to one week's rent.
  • · Rent.
  • · Council tax and utilities (depending on tenancy agreement)
  • · Requests by tenant to terminate tenancy early
  • · A refundable deposit, capped at five weeks' rent for annuual rents less than £50,000 and six week's rent for those above
  • · Any changes to the tenancy requested by the tenant, capped at £50 (or "reasonable costs").
  • · Defaults by the tenant i.e fines for missing keys, late payments and etc but to be within "reasonable costs"

>>>>>>> All other fees are now banned <<<<<<<<<<<<

What does the Government say?

"[We] intend for the provisions of this bill to come into force on 1 June 2019. This would mean that the ban on letting fees would apply to all new tenancies signed on or after this date."It has been clear throughout that this is a bill that we all support, and one that will deliver important changes to the private rented sector, improving lives for millions of tenants."  - Lord Nick Bourne of Aberystwyth speaking in the House of Lords.

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