Property Blog

Tenant Fee Ban – What does it mean for you?

Tenant Fee Ban – What does it mean for you?

Tenant Fee Ban – What does it mean for you?

From 1st June 2019 agents, landlords and third parties will be unable to charge tenant fees on any new tenancies or renewals. Neither a landlord or agent will be able to make any charges for admin, references, inventories, professional cleans, check outs, right to rent checks or deposit protection to name but a few.

Deposits will be capped at the equivalent of 5 weeks rent; you will be unable to charge any extra for pets. The cap will apply to all tenancies under £50,000 per annum signed on or after the 1st June 2019. This will also apply to any tenancy renewals after 1.06.19 and if there has previously been a deposit higher than equivalent of 5 weeks of rent then this will be required to be returned at the point of renewal.

The charges/fee ban and deposit cap will apply to all existing tenancies (except Company lets and non-assured tenancies) after the 01.06.2020.

If you are found to be in breach the new legislation, you will receive a £5,000 fine per breach if it is your first offence. If it is your second offence this will go up to £30,000 per breach.

Any charges made which do not conform to the new legislation will have to be returned to the tenant in full or any Section 21 served for possession of your property thereafter will be rendered invalid.

The bill is aiming to:- “deliver important changes to the rental sector.. and ….offer greater protection for tenants whilst not unfairly impacting on landlords or agents.”

With current predictions that this will cost the lettings industry £200 million in turnover per annum and more than 4000 job losses I would suggest that the impact that this is about to have on a very overstretched industry has been gravely underestimated.

What impact do I envisage that this will have on the local rental market?

• An increase in rents
• A decline in letting agents
• Landlords fees will increase
• Landlords will be even more selective in what tenants they take on
• Landlords less willing to take on tenants with pets

If you have any questions on how this could impact you then please do not hesitate to contact us on 01843 222700 or by email to