The Tenant Fees Act (2019) bans most letting fees and also caps tenancy deposits paid by tenants in the private rented sector in England.
The ban on fees applies to new or renewed tenancy agreements that were signed on or after 1 June 2019.
The aim of the act is to reduce the costs that tenants face at the outset, and throughout, a tenancy. Tenants will be able to see what a given property will cost them in the advertised rent with no hidden costs.
The only payments that landlords or letting agents can charge to tenants in relation to new contracts are:
- rent
- refundable tenancy deposit capped at no more than five weeks’ rent where the total annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or more
- refundable holding deposit - to reserve a property - capped at no more than one week’s 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. Novation describes another way of changing the tenant, when rather than simply transfer the tenant’s rights to someone else, the original tenancy contract is terminated and replaced with a new contract
- payments in respect of utilities, communication services, TV licence and council tax
- default fee for late payment of rent and replacement of a lost key or security device giving access to the housing, where required under a tenancy agreement