Tenant Fee Bill published
by Patrick Garratt - 3rd May 2018
Bill one step closer to becoming law
The tenant fee ban has now been introduced and will start making its way through Parliament. It is expected to become law sometime in 2019.
Following its scrutiny by the Housing, Communities and Local Government Committee, many in the private rental sector expected deposits to be capped at the equivalent of five weeks’ rent.
However, this recommendation was rejected, with the maximum deposit being capped at six weeks’ rent. Other aspects of the bill include:
- Forbidden to charge fees for creating, renewing or continuing a tenancy
- Holding deposits capped at one week’s rent
- Security deposits capped at six weeks’ rent
- £50 cap on charges made for changing the terms of tenancy agreements (unless can show greater costs are incurred)
Penalties
There are stiff new penalties for any agent or landlord who breaches the law. This includes a fine of £5,000 for an initial breach. Anyone who is fined or convicted more than once in a five year time period would also face criminal charges.
The tenant fee ban will be enforced by Trading Standards, which will create a provision that will enable tenants to reclaim any fees that they have been unlawfully charged.
Meanwhile, an authority will be created, which will enforce the law.
Finally, the Consumer Rights Act 2015 will be amended to ensure that there is transparency of letting agents on portals, such as RightMove and Zoopla.
The bill is expected to become law in 2019. We will, of course, continue to track the bill’s progress through Parliament and on to the statute books.
More information
https://publications.parliament.uk/pa/bills/cbill/2017-2019/0203/18203.pdf