Ban on tenant fees from 1 June 2019
The ban on tenant fees came into force in England on 1 June 2019.
It applies to new tenancies (including renewals) signed on or after 1 June 2019.
The ban will apply to other existing tenancies from 1 June 2020.
The following payments will be banned:
- Viewing fees – you can’t be charged for looking around a property.
- Fees to set up a tenancy – all fees associated with setting up a tenancy will be banned. This includes referencing and guarantor fees, inventory check, credit checks and administration fees.
- Check out fees
- Third party fees – you can’t be charged for using third parties for services such as reference checks or credit checks.
Under the new legislation the only payments in connection with a tenancy that a tenant can be asked to make are:
- the rent
- a 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 your total annual rent is £50,000 or above)
- a refundable holding deposit capped at no more than one week’s rent
- payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
- payments associated with early termination of the tenancy, when requested by the tenant
- payments in respect of utilities, communication services, TV licence and council tax; and
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.
A landlord will still retain a right to claim common law damages where they suffer loss as a result of breach of the tenancy agreement, such as if the tenant damages the property.