The Tenants Fees Act, And Ongoing Tenancies
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
September Market Comment - Hear From Sophie Lane
Despite economic uncertainty and cautious high-end buyers, the Cotswold market remains resilient. Well-presented homes continue to attract strong interest, highlighting the importance of pricing and preparation.
September Market Comment
Inside Cirencester's Finest Townhouses
Set back from a picturesque Cotswold street in the heart of Cirencester’s historic town centre, these exceptional Grade II* Listed townhouses offer a rare blend of classical grandeur and contemporary elegance.
Inside Cirencester's Finest Townhouses
Back British Farming: Celebrating a decade of support
Today marks ten years of Back British Farming Day—a milestone that highlights a decade of unwavering public support and growing awareness of the importance of British agriculture.
Back British Farming: Celebrating a Decade of Support
Renters' Reform Bill Returns To The Commons
Earlier this week, the Renters’ Reform Bill returned to the House of Commons for consideration of the proposed amendments put forward by the House of Lords.
Renters' Reform Bill Returns To The Commons
