As of 1st June 2019, unfair fees charged by letting agents will no longer be legal thanks to the Tenants Act 2019. The ban was first announced more than two-and-a-half years ago, following an extensive campaign led by journalist Vicky Spratt. Millions of renters will benefit from the Act, saving hundreds if not thousands of pounds on fees charged by letting agents and landlords.
According to Citizens Advice, private renters in England have been paying £13 million a month in letting fees. Due to competitive market conditions, many people have been paying just to view properties available for rent. The government committed to banning unfair letting fees in 2016 and was announced by Chancellor Philp Hammond. The government stated that the Bill would become law 'as soon as possible' - but since then renters have paid an estimated £234 million in fees.
What has changed under the Tenants Fees Act 2019?
Under the Act, renters may not be charged fees related to viewing a property, setting up their tenancy agreement, or for checking-out of their tenancy. Legislators were also urged to make renting more accessible by reducing the amount of deposit that could legally be charged from six weeks to four weeks. The final Bill compromised on five weeks rent.
Such a ban has been in place in Scotland since 2012, with Wales looking to set out its own rules about letting fees in September of this year.
Gillian Guy, Chief executive of Citizens Advice, said:
'The end of these uncompetitive and unfair letting fees is a real win for renters.
'The new law means families and other renters don't have to hand over hundreds of pounds every time they move home.
'We look forward to working with the Government to further strengthen the hand of renters in a market where they have little bargaining power.'
We regularly assist clients in buying buy-to-let properties and can advise you fully of how the Tenant Fees Act 2019 impacts you. Whether you are a seasoned landlord or looking to buy your first buy-to-let property, we are confident we can assist you in making the conveyancing process as straightforward as possible. To discuss your specific needs and circumstances with a member of our residential conveyancing team, get in touch with us today.
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