Tenant Fees Ban Comes Into Force


Changes to the law that will benefit tenants substantially have recently been passed by Parliament.

The Tenant Fees Act 2019, which comes into effect on 1 June 2019, controls what payments a landlord or letting agent may require 'in connection with a tenancy of housing in England'. There are substantial penalties for landlords who fail to comply with the new legislation.

The most important change is that landlords will no longer be able to demand a security deposit of more than five weeks' rent if the annual rent is less than £50,000.

In addition, the Act introduces a ban on excessive charges for lost keys or security devices, late rental payments and early lease termination (unless loss to the landlord can be proven), and on premiums for the supply of services such as Internet connections.

Landlords who charge unlawful fees can have their right to repossess their properties suspended until the fees are repaid.

There are also other, less significant changes.

The Government has recently announced that it will ban Section 21 notices, the eviction procedure by which landlords can regain possession of their properties without providing a reason. A consultation on the Government’s plan will begin shortly.

Felix Clarke