Tenants across England from June will be relieved to hear that the upfront costs of renting will be considerably reduced. Thanks to the Tenant Fees Act – which puts a ban on lettings fees, tenants from June 1st will no longer be expected to make payments for services provided by agents and landlords such as:
- Administrative fees
- Credit check fees
- Viewing charges
- Reference fees
- Tenancy agreements
The act pertains specifically to any new agreements signed from June 1st 2019 whilst tenants currently in agreements that precede this will get the rights to this from June 1st 2020.
By eliminating such costs, it’s expected to save renters up to £800 off fees that have historically stifled a proportion of the market. As a result, the government estimates that these new fee bans will save 4.8 million renters around £240m a year.
This ban does however exclude the following payments/costs which landlords and agents can be expected to charge for:
- Refundable deposit capped at five weeks’ rent (six if the annual rent surpasses £50,000)
- Refundable confirmation deposit capped at one week’s rent
- Changes in tenancy agreement for occupancy changes, pets, or subletting capped typically at £50 but can be variable (with evidence provided)
- Early termination fee
- Default fees for late payment of rent or replacement of lost keys or door fobs
For agents and landlords, charging illegal fees could cost fines up to £5,000 for first-time offenders whilst an unlimited fine can be expected for repeat offenders within a five year window.
Here at SearchSmartly, we work strictly with reputable agents who abide by the new acts implemented, ensuring that all proposed tenancies exclude illegal or unscrupulous behaviour that do not benefit potential tenants. If you are looking to move, why not start your search with us and our trusted agents.