12th
Apr 2017
The Government has finally released its plans for the consultation on the banning of letting agents' fees for tenants for renewing a tenancy or moving to a property. However what has been kept under the radar is that the consultation will also be considering on introducing a cap onto how much landlords can charge for deposits from tenants.
Shelter's concerted campaign on the ridding of 'unfair fees' has placed pressure on the government by disclosing that one in seven tenants have and are being charged more than £500 by lettings agents, which has been a major factor in the government's actions. The consultation is due to take place and should take eight weeks before the announcement of the bans' implementation.
The main measures that the consultation will be considering include:
Agents cannot charge tenants any fees for new tenancies, renewals or continuation of tenancies.
Landlords or any other parties will not be able to charge tenants administration fees.
The possibility of introducing a cap on amounts of deposit to be paid by tenants.
Possible alternative schemes whereby tenants are asked for prior deposits before a new tenancy.
Housing Minister Gavin Barwell said: "Tenants should only be required to pay their rent alongside a refundable deposit and not face hidden fees."
The government is also considering whether to introduce a system whereby tenants can pay deposits on a monthly basis or putting(blocking) an agreed amount on a tenant's credit card.
However tenants may have to face being charged for 'holding' deposits whilst reference checks are being checked out as the property will in effect be off the market whilst these are going through. It is more than likely that tenants will still have to pay for the replacement of keys and any management services undertaken by their own negligence as well as extra charges for late rental payments.
The link to the consultation details on the government's website:
https://www.gov.uk/government/consultations/banning-letting-agent-fees-paid-by-tenants
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