From tomorrow, it will be illegal for tenants in England to be charged letting fees, with deposits capped at five weeks’ rent.
Under the Tenant Fees Act, from Saturday 1st June 2019, landlords and letting agents in England will only be permitted to take the equivalent of five weeks' rent as a tenancy deposit on annual rents below £50,000 for new and renewed tenancies. But deposits will be capped at six weeks’ rent if the total annual rent is £50,000 or above.
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.
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.
The ban on fees charged by landlords and letting agents in Wales will be introduced in September.
From 1 September 2019, agents and landlords in Wales will no longer be able to charge fees to set up, renew or continue a standard occupation contract except those explicitly permitted by the Bill.
Under the new Act, holding deposits will be restricted to one week’s rent with provisions that ensure their prompt repayment.