Ban on Letting Agent fees

Ban on Letting Agent fees


A major change for the lettings industry is coming into effect for all tenancies after 1st June 2019 in England. Called the ‘Tenant Fees Act 2019’, it could cause quite a stir along the way.

The act sets out the governments approach to banning fees paid by tenants in the private rented sector in England. The act is aimed at rebalancing the relationship between tenants and landlords, with the wider aim of making everything fairer, improving quality and creating more affordable rental properties.

From 1st June you cannot require a tenant to make certain payments in connection with a tenancy. You cannot require them to enter a contract with a third party or make a loan in connection with a tenancy.

The only payments that can be charged in connection with a tenancy are:

  1. the rent
  2. a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
  3. a refundable holding deposit (to reserve a property) capped at no more than one week’s rent
  4. payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
  5. payments associated with early termination of the tenancy, when requested by the tenant
  6. payments in respect of utilities, communication services, TV licence and council tax; and
  7. A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement

For further details on the ACT check out the information on the website

The landlords guild also have a good article


If you would like to know more, or just have a few questions how this may effect you. Call our residential letting agent expert Nicola Bremner (MARLA) on 01252 622550