Image for article: The Tenants Fees Act, And Ongoing Tenancies 

The Tenants Fees Act, And Ongoing Tenancies 

28 May 2020
Butler Sherborn logomark

Keep up to date with the latest properties, rural business insights, market commentary and events:

Join mailing list

 

On the 1st June 2019 the above Act came into force across England and introduced fundamental changes to the fees and charges that landlords, and/or letting agents, can seek to recover from a tenant.   

Whilst the legislation applied to all new tenancies from 1st June 2019, it also includes all ongoing tenancies from the 1st June 2020.     

What does this mean for your tenancy agreement that you have ongoing with your current tenant?  In essence, the Act bans all payments from a tenant in association with renting a residential property,  unless they are expressly permitted by the Act.  Therefore any clause in a tenancy agreement, requiring a banned payment, will now be void from the 1st June 2020. 

 

Examples of Prohibited Payments/Fees 

Tenancy Agreement fees Reference and Credit Check charges Inventory and check out fees Requesting ‘professional’ cleaning at the end of a tenancy Requesting chimney sweeping Requesting pool servicing, maintenance, opening and closing Requesting ‘professional’ clearing of gutters and drains Requesting gardening contractors to maintain grounds Requesting additional payments for pets ie. Pet deposits 

 

Tenancy Deposit 

The Act also capped deposits for all new tenancies at a maximum of 5 weeks rent (if the rent is less than £50,000 per annum) and 6 weeks rent (if the rent is £50,000 or more per annum) 

However with an existing tenancy, which has already reverted to a Periodic Assured Shorthold Tenancy from 1st June 2020, there is no requirement to refund the different in the deposit held and the equivalent of 5 weeks rent.   Therefore currently held deposits are not affected. 

 

What are the permitted payments? 

Rent  Actual utility costs  Certain tenancy default fees    Restricted fees for assignment/variation of a tenancy  Early termination of agreement fees – again restricted under the Act 

 

Consequences 

Trading Standards are responsible for enforcing breaches of the Act.  Each breach will be a civil offence, and carry financial penalties. There are further penalties for breaches including being unable to serve notices or banning orders for landlords.   

The full details of the Act can be found at https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance 

 

News & Comment
Read Article
Studio Chappell

Meet Charlotte, Founder of Studio Chappell – Our Official Interior Design Partner

We’re delighted to offer a complimentary one-hour design consultation with Charlotte Chappell, Studio Chappell, our official interior design partner. Whether you're planning a full renovation or simply looking to refresh a single room or kitchen, Charlotte can provide her expert guidance tailored to your needs. We sit down with Charlotte in our Cirencester office over a cup of tea to find out more!

Meet Charlotte, Founder of Studio Chappell – Our Official Interior Design Partner
Read Article
Easter House

Why Local Expertise Still Matters in the Digital Property Market

In an age when almost every property search begins online, it’s tempting to think that technology has replaced the need for local expertise. After all, digital platforms can showcase homes in seconds to a national and international audience, complete with glossy imagery, virtual tours, and videos, and instant alerts. Yet, in practice, it has never been more important to have a trusted local expert guiding you through the process.

Why Local Expertise Still Matters in the Digital Property Market
Read Article
Renters Right

Renters Rights Bill - Update

The House of Lords have now completed their scrutiny of the Renter’s Rights Bill and yesterday The House of Commons finished their final stage of reviewing the Bill, before now going for Royal Assent.

Renters Rights Bill - Update
Read Article
The Rectory

October Market Comment - Hear from Elizabeth D'Allemagne, Senior Partner

While speculation continues to divide the market between those eager to exchange pre-Budget and those waiting for clarity, some properties are still moving at remarkable speed. We take a closer look below.

October Market Comment
A laptop on a desk with houseplants an coffee
Instant Digital Valuation

Wondering what your property is worth?

Get an estimated valuation for you property using our free digital valuation tool.

Rightmove logo
Rics logo
The Property Ombudsmen logo
CTSI Approved Code logo
CAAV logo
The London Office logo
Team Way Eventing logo