As part of the Government’s bid to limit hidden costs for tenants, the new Tenant Fees Act is now in place in England. Essentially, the act caps the amount that renters can be charged for things like deposit fees. Letting fees have even been completely banned.
In the past, many landlords have overcharged renters for minimal damage, or huge exaggerated bills for small item replacements. Landlords and agents will now have to provide evidence of anything they’re charging tenants for, which must be “reasonably incurred costs”. If they ignore the letting fees ban, they will be faced with a fine of £5,000, which could increase to £30,000 for repeat offenders. It could even result in a criminal offence.
In instances where landlords owe renters unlawfully charged money, the new law ensures it will be paid back quickly so that tenants don’t have to wait. The only fees that can now be charged are rent, a refundable tenancy deposit, a refundable holding deposit, and fees associated with changing or terminating the tenancy.
This new law was passed back in February 2019 and came into place on the 1st of June, meaning all new tenancies going forward must follow the new rules, as well as any renewals. The Government has determined that tenants across England will save around £240m per year thanks to the new act. Per household, around £70 will be saved.
Categorised in: News
This post was written by Dennis Adam