The ban on fees charged by landlords and letting agents will be introduced in June after the Tenant Fees Bill passed its final reading at the House of Commons, meaning that it will soon gain Royal Assent and become an Act of Parliament.
From 1 June 2019, agents will no longer be able to charge fees to set up or renew a tenancy in the private rented sector.
The new law will not just mean a ban on letting fees, but also the majority of other upfront fees payable by tenants to rent a property in England.
There will also be a cap on the amount of refundable security deposit a tenant would be required to pay to the value of five weeks’ rent as well as a cap on the amount of holding deposit a tenant will be required to put down to secure a property to the value of one week’s rent.
The government believes that the Bill will make renting properties in England fairer and more affordable for tenants by reducing the costs at the outset of a tenancy, at the same time as improving transparency and competition in the private rental market.
David Cox, chief executive, ARLA Propertymark, commented: “The tenant fees ban is now an inevitability, and agents need to start preparing for a post-tenant fees world. Following its passage in the House of Lords last week, this afternoon the Tenant Fees Bill passed its final hurdle in the House of Commons.”