The Tenant Fees Act 2019

On 12th February 2019 The Tenant Fees bill received Royal assent to become The Tenant Fees Act 2019.

The Act applies to both Landlords and Lettings Agents and restricts certain charges to tenants for Assured Shorthold Tenancies and residential licences.

The Act caps deposits payable by the tenant with the deposit cap being no more than five weeks rent (where annual rent is less than £50,000.00) or more than six weeks rent if the annual rent is in excess of £50,000.00.

It also prescribes permitted charges which includes, but not exhaustively, payments for the loss of keys, Council tax, utilities and communication services. Further the Act places restrictions on certain charges to be incurred by the Landlord or the Letting Agent.

Breaches of the Act can result in a fine of up to £5,000.00 for a first offence. If a second breach is committed within five years of the first offence a criminal offence is then committed. That in turn may result in a banning order being imposed upon a Landlord. In the alternative, the enforcing authority (Trading Standard Authorities and District Councils) can impose a civil penalty for breaches of up to £30,000.00.

The relevant provisions are due to come into force on 1st June 2019 for new and renewal tenancies and licences (excluding periodic tenancies) and from 1st June 2020 the provisions will apply to existing tenancies and licences.
A link to The Tenant Fees Act 2019 appears below

Please contact our Ben Kerley for further information as required.