New guidance for landlords and letting agents has been released by the government.
The Tenant Fees Act 2019, which applies to England only, will come into play from 1 June 2019 and applies to fees paid in connection with a tenancy of housing.
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.
Click to read: Tenant Fees Act 2019: Guidance for landlords and agents.