6^th Nov 2018

Yesterday (November 5th) the Tenant Fees Bill that once passed will ban most landlords and lettings agents charging upfront tenants fees in England, is now at the latter stages of becoming legislated after being reviewed again by the House of Lords.

The Tenants Fees Bill started its journey in May when it was first introduced into Parliament, and has been scrutinised by the upper chamber and passed through its committee stage in the House of Lords yesterday afternoon.

The new law if passed, which is very likely, will also introduce a cap on how much a refundable security deposit can be asked for from prospective tenants to secure a tenancy.

The government's intentions with the Bill is to make it easier, cheaper and fairer for tenants to rent properties in England, by removing the majority of upfront fees that are being charged by landlords and agents. It is also hoping that in doing so will create a far more competitive market that tenants may be able to take advantage of.

The Bill will put an onus of responsibility on district council and trading standards authorities to introduce a new level of fines on rogue agents and landlords whose properties do not reach the necessary requirements. The fines will include a £5,000 penalty for first time breaches and will be classed as a civil offence.

If an agent or landlord commits a further breach in the next five years, their actions will classed as a criminal offence, and they will be faced with an unlimited fine as well as a banning order offence under the Housing and Planning Act 2016.


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