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Letting Fees Banned From June 1
16th Apr 2019

 

 

Announced last week was the ban date in The House Of Lords, meaning that tenants wont be charged £100’s in admin fees on tenancies signed on or after june 1st 2019. Although Letting fees are still legal in Wales and Northern Ireland, they're already banned in Scotland, a ban was put before the Welsh Government last June. 

 

However, a ban date was mentioned in 2016 by, Chancellor Phillip Hammonds where he said he hoped to bring in new rules “as soon as possible” in his autumn statement. 

 

What does the Govenment say? Well Lord Nick Bourne of Aberystwyth says that this ban applies to all new tenants signed on or after 1st June. 

 

“It’s 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”. 

 

What are the New Rules?

 

The New Rules implied as of june 1 are stated below:

only costs  landlords and agents will be able to charge tenants for will be:

  • Rent 
  • Unitlities and council tax if included within the tenancy
  • A refundable deposit, capped at six weeks rent. the cap could be 5 weeks rent for properties where the annual rent is less than £50,000, under an amendment put forward in the house of lords.
  • A refundable holding deposit to reserve the property, capped at one weeks rent.
  • changes to the tenancy requested by the tenants, capped at £50 (or "reasonable costs").
  • Early termination of the tenancy requested by the tenant
  • Defaults by the tenant, such as fines for late rent payments or lost keys. these must be reasonabkle costs, with evidence given in writing by the lanlord or agent.  

 

Lanlords or Agents found charging any other fees could be fined £5,000 for a first offence. if they break the rules again within five years, they could be given an unlimited fine.

 

However, for now - Tenants will still be charged admin fees - such as tenancy renewal fees, referencing fees and credit check fees - by Landlords and Letting Agents. According to Citizens Advice the average amount paid is £400.

 

What Next? This is not yet a law, although its been through The House Of Commons, House Of Lords and its Third Reading so its almost finalised and should take action on 1st June. It will be sent back to both The House Of Commons, so MP’s can debate final amendments made in The House Of Lords. After which will recieve ‘Royal Assent’ and become Law.

 

                                                                                                                  

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