The Tenant Fee Ban 2019 - what every landlord needs to know

With the introduction of the Tenant Fee Ban 2019 looming fast, Rachael James, Head of Lettings, explains what the ban entails and what all Landlords need to know.

The Tenant Fee Ban 2019 - what every landlord needs to know

A ban on upfront letting agents’ tenant fees will come into effect on 1st June 2019. This change in the legislation will certainly have an impact on the private rental sector.

The aim of the bill is threefold

  • to reduce the costs that tenants need to find at the beginning of their tenancy
  • to rebalance the relationship between tenants and landlords, and
  • to provide a more affordable private rented sector.

What are the legal changes?

  • Tenancy deposits are to be capped at the equivalent of five weeks’ rent
  • Holding deposit to be capped at the equivalent of one week’s rent
  • A cap on the fees which can be charged to a tenant should they vacate a property before their fixed term tenancy expires
  • A restriction on issuing of Section 21 notices (formal notice to gain possession).

When will the ban be implemented?

The Tenant Fee Regulations 2019 come into effect on 1st June 2019

How will it affect landlords?

Currently, the fees paid by a tenant in advance of their tenancy pay for the agent’s services in processing thorough and critical reference and background checks and a check-in of a detailed schedule of condition of the property.

Landlords need to recoup the costs elsewhere, invariably through charging higher rents. It is believed therefore that the Government’s decision to implement a ban on upfront fees will most likely have a negative impact on the very people the legislation is intended to protect.

Our experienced and qualified letting agents can advise landlords further on this – and the many other pieces of legislation governing letting property.  Visit our Landlords Guidance Page for more information on how the Symonds & Sampson Team can help guide you through the changes ahead, as well as the many other services we offer to Landlords, or contact the team for further information.

Stay up to date