The Letting Fees Act came into effect on 1st June 2019.
The Tenant Fees Act bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England and applies to new or renewed tenancy agreements signed on or after 1 June 2019.
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy. Tenants will be able to see, at a glance, what a given property will cost them in the advertised rent with no hidden costs. All admin costs that are associated with a new tenancy application for referencing, credit checks and guarantors, are now banned.
From 1 June 2019, the only payments that landlords or letting agents can charge to tenants in relation to newly signed contracts are as follows:
Rent (additional rent charges may apply to permit pets – subject to approval)
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 weeks 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
- Cleaning and any associated damages/ breach of tenancy fees will have to be justified by evidence
- 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
You will be provided with a copy of the ‘How to Rent’ guide during the initial stages of your application which provides you with further useful information. Click here for the government-issued guide here How to Rent Guide,
Please click on the government guidance on the Act for tenants, landlords and letting agents.
Please click on the government guidance on the Act for tenants, landlords and letting agents
Updated May 2021