Tenant Fees to be banned from 1 June
Telford & Wrekin Council is warning landlords and letting agents they will soon be banned from charging tenants fees unless they are permitted by law. The ban applies to all assured shorthold tenancies, tenancies of student accommodation and licences to occupy housing
The Tenant Fees Act 2019, which comes into force on 1 June 2019, prohibits landlords and letting agents from charging fees unless they are included in the list of permitted fees, which includes:
•Rent payments
•Refundable deposit (capped at five weeks’ rent)
•Refundable holding deposit to reserve a property (capped at one week’s rent)
•Payments to change the tenancy (capped at £50)
•Early termination
•Utilities, TV, phone & internet and Council tax
•Default fee for late payment
•Replacement of lost key, where required by the tenancy agreement
Any fee or charge which does not fall into one of these categories will be prohibited, such as credit checks, inventories and references.
Cllr Richard Overton, Telford & Wrekin Council’s Cabinet Member for Enforcement said: “We welcome this change in the law which means people looking to rent a home won’t have to pay extra for things like administration or tenancy agreement. We know that for far too long, these additional costs have put more financial pressure on people looking for somewhere to live and, for some, these extra fees have put them off.
“Anyone who charges a prohibited fee from 1 June can be issued with a financial penalty of up to £5,000. If a second breach is committed within five years it becomes a criminal offence and can be dealt with by prosecution or a financial penalty of up to £30,000.”
If a tenant has been charged a prohibited fee, legal eviction procedures cannot be used until the fee has been repaid. Tenants will also have the right to recover unlawfully charged fees through the First-Tier Tribunal or the relevant redress scheme where it concerns an agent.
Initially, the ban will only apply to tenancies which begin after 31 May 2019 however, from 1 June 2020 the ban will apply to all existing tenancies which were not previously caught by the ban. For tenancies that begin before 1 June 2019, prohibited fees can still be charged until 1 June 2020, but only if they are required by the tenancy agreement.
Further guidance on the new legislation can be found by visiting Telford & Wrekin Council’s Public Protection page at http://www.telford.gov.uk/info/20437/housing_-_tenants_and_landlords/3856/fees_and_charges
