Landlords and lettings agents across England will be banned from charging tenants’ lettings fees from the 1st June 2019.
The ban was first discussed in Parliament in 2016 when the Chancellor, Phillip Hammond said that he would like to bring in new rules “as soon as possible” in his Autumn statement. This new piece of legislation will stop tenants being charged hundreds of pounds in admin fees on tenancies that are signed on or after 1st June 2019.
Although lettings fees are currently banned in Scotland, they are still legal in Wales and Ireland.
What are the new rules for landlords?
Currently, tenants can be charged admin fees when the move into a property such as tenancy renewal fees, referencing fees and credit checks by landlords and lettings agents. Typically, this adds an additional £400 of extra fees. However, landlords will no longer able to charge these fees on or after the 1st June 2019.
Any additional costs will now have to be covered by the landlord, which cause some landlords to increase the cost of renting a property.
From the 1st June 2019 landlords and agents will only be able to charge tenants for the following:
- A refundable deposit
- Changes to the tenancy
- Early termination of the tenancy
- Utilities and council tax
- Defaults by tenants
Any other fees are now banned and anyone agent or landlord found charging the fees could be fined up to £5000 for a first offence. However, should they break this law again they can face an unlimited fine.