You are here: Home - Mortgages - Buy To Let - News -

Tenant fees to be banned from June

0
Written by:
16/01/2019
Unfair tenant fees in the private rented sector are to be banned from the summer.

The government’s housing minister, Lord Bourne of Aberystwyth, announced that the Tenant Fees Bill will come into force in June during the Third Reading of the bill in the House of Lords yesterday.

He said: “It has been clear throughout that this is a Bill that we all support, and one that will deliver important changes to the private rented sector, improving lives for millions of tenants.

“We intend for the provisions of this Bill to come into force on 1 June 2019. This would mean that the ban on letting fees would apply to all new tenancies signed on or after this date.”

What will be banned?

The aim of the Bill is to reduce the costs that tenants can face at the outset, and throughout, a tenancy.

It will stop letting agents from exploiting their position as intermediaries between landlords and tenants, and prevent unfair practices such as double charging for the same services.

Banning letting fees will save tenants around £240m a year, according to government figures.

Under the new rules, tenants will only be legally obliged to pay their rent as well as any charges for replacement keys or a respective security device, utilities and council tax and late rent payments.

Deposits paid at the start of a tenancy will also be capped at five weeks’ rent.

Anyone caught breaching the ban on letting agent fees will be subject to a £5,000 fine.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week