29th May 2019
Responsible landlords – are you up to date with the new Tenant Fees Act 2019? It is important that you understand your obligations and review your current letting agreements to ensure you are compliant.
The Tenant Fees Act 2019 comes into effect from 1st June 2019 in England. The Act has been put in place to improve fairness, competition and affordability in the private lettings sector. It hopes to make payments transparent and ban the charge of additional fees.
Landlords or agencies will only be able to charge tenants for rent, deposits, holding deposits, changes to the tenancy, early termination, late payment fees, loss of keys and utility bills. No longer will tenants face a long list of additional charges and fees for administration, credit searches etc.
From 1st June there will be a cap on tenancy deposits and holding deposits. For properties where the annual rent is less than £50,000, the deposit is capped to 5 week’s rent or less. Where the property exceeds £50,000 rent per annum, the deposit is capped to 6 week’s rent or less. Holding deposits on a property are to be no more than 1 week’s rent.
Landlords could face penalties and even criminal conviction if they fail to comply with the new provisions. Penalties could reach up to £5,000 however; local authorities will be given the discretion to fine up to £30,000 as an alternative to prosecution.
Our message to residential landlords is to read through the guidance notes and ensure that you fully understand your new obligations. If you are yet to do so, we would urge you to review your tenancy agreements and make the necessary changes immediately.
If you need assistance then please get in touch with our Property Law Team on 01256 305516 or email mailto:email@example.com
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
If you are need of professional, reliable legal advice, contact us today.
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