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Tenant Fees Act: What does it mean for landlords and their tenants?

Daniel


Daniel, Intermediary Specialist

Published 08.08.2019

It’s been two months since the introduction of the Tenant Fees Act - a crucial piece of legislation designed to protect tenants from the unexpected costs and hidden fees when renting out a new property.

Hopefully your customers are now familiar with the Act, but just in case there are still some out there who are unsure about the changes, I thought this was a good opportunity to talk about what tenants can and cannot now be charged, and how we could help if you’ve got any questions.

Tenants can now only be charged for the following*:

  • Rent
  • A refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
  • A refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
  • Payments associated with early termination of the tenancy, when requested by the tenant
  • Payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
  • Payments in respect of utilities, communication services, TV licence and Council Tax
  • A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement

It means tenants cannot now be charged for things like drawing up contracts, reference and credit checks, tenancy renewal fees and check-out fees at the end of the tenancy.

It’s certainly a lot for everyone to take in, which is where our Sales Team can help. We’ve expanded the team considerably in the last two years. It means wherever you’re based, one of our friendly and knowledgeable Business Development Managers is never far away. In 2018 alone, our team supported 272 workshops, seminars and round-table events across the country to increase brokers’ understanding of specialist lending and, in particular, changes to the buy to let market.

If you’ve got a question about the Tenant Fees Act, or any other aspect of specialist lending, speak with our Sales Team.

Source: *https://www.gov.uk/government/collections/tenant-fees-act


For intermediary use only
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