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Fees - Scrabble pieces on selection rack spelling out the word 'FEES'

Tenant Fees Act comes into place

The Tenant Fees Act 2019 came into force on 1 June 2019, restricting the payments landlords or letting agents require from tenants in the private rented sector.

The Tenant Fees Act bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England, offering protections against additional fees to tenants. The ban on tenant fees applies to new or renewed tenancy agreements signed on or after 1 June 2019.

The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy. Tenants will 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 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 in respect of utilities, communication services, TV licence and Council Tax
  • A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement

Local enforcement authorities have primary responsibility for enforcing this legislation. The Tenant Fees Act created an independent lead enforcement authority to provide advice and information to local authorities on the Act.

Read: Gov.uk - The Tenant Fees Act