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Wed 06 Dec 2017

Draft Tenants Fees Bill

On 1st November, the Government published a draft Bill, proposing a ban on letting agent fees for tenants. The draft Bill proposes to ban landlords and their agents from requiring tenants in the private rented sector to make any payments, as a condition of granting, renewing or continuing a tenancy (or as a condition of making the arrangements for those things), with the exception of:

(1) the rent;

(2) a refundable tenancy deposit capped at no more than six weeks’ rent;

(3) a refundable holding deposit capped at no more than one week’s rent;

(4) tenant default fees (such as replacing a lost key or late rent payment fine).

The proposals in the draft Tenant Fees Bill apply to Assured Shorthold tenancies and do not apply to long leases as per Clause 20 in the draft Bill and explanatory notes, which can be found here 

We do not yet have a date for when a ban on fees will come into force therefore letting agents are still able to charge fees until the legislation is implemented.

Publishing a bill in draft enables scrutiny of the proposals to ban letting fees by Parliament and stakeholders ahead of introducing legislation. It is then hoped it will help mitigate any unintended negative consequences and ensure the best possible implementation.

The scrutiny of the draft Bill will take a few months. The Government will then seek to introduce the Bill formally to Parliament at the earliest opportunity. 




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