Guidance on the letting fees ban published

As from the 1st June 2019, the tenant fees ban comes into force through which landlords and their agents will be banned from charging ‘agency fees’  to tenants for things like credit checks, inventories and references.

The guidance on the Tenant Fees Ban published by the government makes it clear that ‘The only payments you (landlord and their agents) can charge tenant in connection with a tenancy are:

  1. the rent;
  2. a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above;
  3. a refundable holding deposit (to reserve a property) capped at no more than one week’s rent;
  4. payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher;
  5. payments associated with early termination of the tenancy, when requested by the tenant;
  6. payments in respect of utilities, communication services, TV licence and council tax; and
  7. A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement”

Fees included in existing contracts can still be charged until 1st June 2020.