The government has finally released details about the tenant fees ban they announced last year, and both landlords and letting agents could find themselves with thousands of pounds in fines.
- Government announce deposit cap in new Tenants' Fees Bill
- Ban on letting fees: all you need to know about the tenant fees ban
- Landlord Self Assessment tax returns guide - all you need to know
- Why do I need landlord insurance?
What is included in the tenant fees ban?
According to the details released at the start of November, almost all fees (other than rent) previously charged to tenants by letting agents and landlords will be banned.
Notably, this includes the cost of referencing and inventory checks, which make up the bulk of fees at the start and end of the tenancy. It also covers third parties, meaning you can’t ask tenants to pay an external referencing company, for example.
What are landlords and letting agents allowed to charge tenants for?
Landlords and letting agents are, of course, still allowed to charge rent, as well as the following three exceptions:
- Security deposits (capped at 6 weeks' rent)
- Holding deposits (capped at 1 week’s rent)
- Tenant default charges
What are the penalties?
For those who don’t comply with the ban, there are a number of fines you could face - as well as potentially being prosecuted.
The initial fine is £5,000, enforced by Trading Standards, and if you commit another breach within five years you’ll be fined a further £30,000, or potentially be taken to court.
When will the tenant fees ban come into force?
The draft bill will have to be looked at and approved by MPs before it is passed into law, so there is currently no set date for the introduction of the ban. The document states: “The Department for Communities and Local Government will work with the sector to shape the wider regulatory framework and provide more detail on this in due course.”
How will the new ban on fees affect you? Let us know in the comments.
Get set with tailored landlord cover
Over 200,000 UK landlord policies, a 9/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote today.
Start your quotePeople also liked
Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.
Subscribe to our newsletterInsurance
Public liability insuranceBusiness insuranceLandlord insuranceTradesman insuranceProfessionals' insuranceNot for profit insuranceRestaurant insuranceCommercial van insuranceInsurersAbout
About usOur teamAwardsPress releasesPartners & affiliatesOur charitable workModern Slavery ActSocial mediaSite mapAddress
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2020 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.