The Tenant Fees Act 2019 comes into effect on 1st June 2019 applying to all agents and landlords in England. The Act limits the amount a tenant can be charged for a holding deposit and security deposit and defines what a tenant can be charged in addition to rent.
Certain fees and charges are permitted under the Act, whereas others are defined as prohibited payments.
The main changes include:
- Capped holding deposits and set timeframes for repayment;
- Capped security deposits;
- A set list of permitted payments which can be taken during the tenancy; and
- A set list of prohibited payments which cannot be charged under the Act in any circumstances.
Here’s an overview of the changes made by the legislation:
- Holding deposits are capped at one week’s rent;
- Security deposits will be capped at five weeks’ rent where the annual rent is less than £50,000 and six weeks’ rent where the annual rent is £50,000 or more;
- Default fees (fees which can be charged during the tenancy) are limited to the reasonable costs incurred in replacing a key or lost security device or interest on rent overdue by 14 days or more, capped at 3% above the Bank of England base rate.
If you would like any further information on this, please contact our Lettings Manager, Chris Brewer, on 020 8605 1300.
