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Tenant Fees Bill Gains Royal Assent

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

The Tenant Fees Fill has received Royal Assent, thereby putting an end to letting fees imposed by landlords or agents.

The ban will come into force from 1 June and will also see security deposits being capped at 5 weeks' rent and holding deposits at no more than 1 week's rent.

The government expects the measures to save renters at least £240 million a year or up to £70 per household.

Commenting on the Act, Communities Secretary Rt Hon James Brokenshire MP said: "Tenants across the country should not be stung by unexpected costs from agents or landlords."

"This Act not only delivers on our promise to ban letting fees but also caps deposits at 5 weeks' rent and sets out how and when landlords can charge tenants fees - helping renters keep more of their hard-earned cash."

"This is part of our ongoing action to make renting fairer and more transparent and make a housing market that works for everyone."

Under the Act, landlords and agents are only able to recover reasonably incurred costs from tenants and must provide evidence of these costs before they can impose any charges.

It is hoped this will prevent tenants being charged hundreds of pounds for damaged items that cost a few pounds to replace.

Those in breach of the new rules could face an initial fine of £5,000. Repeat offenders could face financial penalties of up to £30,000 or face prosecution.