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Tenant Fees Bill receives Royal Assent

The Tenant Fees Bill, banning landlord and agents from charging fees to tenants, has become an Act of Parliament after being given Royal Assent.

The act means that from 1 June 2019, landlords and 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: “We’ve known the tenant fees ban has been coming for a long time, but with only 109 days to go until it comes into force, the industry must start taking time to prepare.

“The government will soon publish its guidance now that we have legislative certainty, which will give agents a better understanding as to how the ban should practically be implemented.”

Under the terms of the new Act, the maximum amount that can be charged for a change to a tenancy is £50. Any landlord breaching the ban for the first time will be hit with a £5,000 fine.

Housing and Communities Secretary James Brokenshire 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.”

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Poll: Is the industry prepared for the tenant fees ban?


  • John Cart

    We were double crossed by this shower of s*** government over the level of deposit, they had promised six weeks but reneged at the last minute. They have no idea regarding costs in the rental market. I've just been paid by the DPS, nearly 3 months after the tenancy ended and the 6 weeks rent didn't cover the costs of a professional clean, replacing the living room carpet, repairs to a laminate floor (not easy) and replacement of the vinyl in the bathroom (very nasty). I've had to agree not to chase the tenant for the outstanding amount otherwise the matter would go to arbitration in order to secure this payment. The upshot of all this is the rent has gone up for the next tenant to recover my losses. Will the clowns in government and the landlord bashers like Shelter and Generation Rant plus all the other assorted "do-gooders" ever learn the operation of market forces, I think not.

    • 13 February 2019 09:59 AM

    Of course the rent increase response is only to be expected.
    This results in more clamour for rent controls.
    Every piece of additional cost will nsturally be passed onto tenants by LL.The more costs the more rent increases.
    Rent controls would never factor in these extra costs of doing business.
    It reaches the point where the CODB is so prohibitively high that LL just throw in the towel.
    This inevitably leads to rental supply shortage.
    This then leads to increased rents and so on and so on util the full logic is no rental properties in the PRS and about 9 million homeless tenants having been replaced by homeowners very few of which will be former tenants.
    So you house one now homeowner demographic and have millions of homeless tenants.
    Isn't it better to have housed tenants and just a lot of frustrated aspirant homeowners who are probably still at the parental home.
    If the Tories believe that by their actions they will be creating Tory voting homeowners they are in la la land.
    Most of them will vote Labour as will the tenants.
    The Tories can't possibly hope to win a GE with such voting demographics against them
    Only about 2700 votes saved the UK from a Labour Govt.
    The only way to manage things is to encourage more PRS tax breaks and investment and building more properties along with shutting the borders to mass uncontrolled immigration.
    NONE of this will ever occur.
    Up s### creek without a paddle is how I describe the current PRS woes.


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