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On 1st June 2019 the Tenant Fees Act 2019 came into force.

 

The purpose of the Act is to restrict the types of payments that Landlords and letting agents can demand from tenants.  The Act will apply to Assured Shorthold Tenancies, Student Lettings and licenses to occupy. While there will be a period of 1 year for those under existing tenancies it will apply to all new tenancies with immediate effect.

 

From now on the only payments that a Tenant is required to make include the following (please note this is not intended to be an exhaustive list and certain conditions may apply):-

 

1)      The payment of rent

2)      The payment of a tenancy deposit

3)      A holding deposit

4)      A payment in the event of a breach of the agreement

5)      A fee associated with a variation, assignment or novation of the agreement

6)      Payment for early termination

7)      Council tax and other utility services

8)      TV Licence

9)      Payments for landline phone, internet and cable/satellite TV

 

The main change which will affect both landlords and their agents is that set up fees, renewal fees and check out / inventory fees are no longer permitted.  This will undoubtedly come as a further blow to landlords and agents especially as the parties cannot agree to opt out.  If a prohibited payment is referred to in an agreement then it is likely to be of no effect.  Further, if a landlord and/or his/her agent requests or receives a prohibited payment then enforcement action can be taken and financial penalties may apply in the form of the return of the prohibited payment, interest and compensation accordingly.  It may also affect the service and validity of a Section 21 Notice requiring possession.

Added: 31 Jul 2019 15:53


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