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Tenant Fees Ban Comes Into Effect On 1st June - Here's Everything You Need To Know

From Saturday 1st June, the Tenant Fees Act 2019 will come into effect in the UK, meaning landlords and letting agents can no longer charge tenants extortionate fees in order to rent a home.

The changes are in an attempt to bid to build better relationships between landlords and tenants, and are bound to be welcomed by those who rent their properties rather than owning.

Here's everything you need to know about Tenant Fees Act 2019.


Credit: Pexels
Credit: Pexels

Tenants will obviously still be liable to pay for their rent and utility bills (such as broadband, TV licence, council tax, gas and electric and water) as well as holding deposits and tenancy deposits.

And if you pay your rent late, need replacement keys, request a change to the contract or want to end it early, you'll also be charged - but these rules seem fair enough.

However, fees which many will have found unreasonable in recent years, such as reference or guarantor checks, have been scrapped for tenants and the landlord will now be liable.

So what exactly are the new changes?

  1. You will no longer be charged for third party fees:


Tenants will no longer have to pay third party fees for things like insurance policies, guarantor requests, services for the garden, credit checks and reference checks. These fees will have to be covered by the landlord.

Credit: Pexels
Credit: Pexels

2. There will be a cap on holding fees:

Holding fees will now be capped at the price of one week's rent.

Once a prospective tenant has put a holding fee down, the listing of the property will have to be removed.

All the other holding rules still remain as normal.

So if you go through with the rental, you'll get your holding deposit back. But if you don't go ahead, then you'll be refunded after 15 days.

3. Rent payments continue as usual:

Rent payments still have to be paid, but now landlords will have to get any changes they want to make to their rent reviewed.

4. Deposits will now be capped at five or six weeks:

If the annual total rent of the house is £50,000 or more then the tenant would have to pay a deposit capped at six weeks' worth of rent.

If the annual rent is less than £50,000 per annum, then it'll be capped at five weeks.

Credit: Pexels
Credit: Pexels

5. You'll no longer have to pay to view a property:

If you want to see a property before renting, you won't need to pay money to do so.

6. If landlords don't follow these rules, they may face a fine:

There'll be a £5,000 fine for any landlord that breaches this, which can go up to £30,000 and a criminal record.

7. Contract changes will be capped:

If you make any changes to your contract, this will be capped at £50.

8. All admin costs will now have to be covered by the landlord:

This applies to all renters, unless you signed an agreement before 1st June

9. Late payments will now be capped:

If you do pay your rent late, fees will be capped at no more than 3 per cent of the Bank of England's annual percentage rate per day.

All these changes will be a welcome change for those who rent their homes.

Featured Image Credit: Pexels

Topics: News, Life News, Home

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