Tenant Fees Bill

The government has recently confirmed that the upcoming Tenant Fees Bill will stipulate that the total deposit that can be taken from a tenant paying up to £50,000 in rent over a 12-month period is to be capped at a maximum of five weeks’ rent. The introduction of this cap will mean that landlords or their letting agents must not request more than 5 weeks’ rent as a deposit from tenants.

Any property with a rental value of over £50,000 will have a maximum deposit of 6 weeks’ rent.

The bill also lays out other fees that will be banned (going forward) including any payments over and above the capped 5 weeks’ rent limit. However certain ‘default fees’ will be allowed, for example late fees for late payment of rent. These default fees will need to be clearly defined within the tenancy agreement.

The maximum penalty fine for a breach will be £5,000; however repeat offenders may have criminal proceedings brought against them and could be fined up to a maximum of £30,000.

The Bill is currently awaiting a third reading in the House of Lords.


Oliver Kew

Published on 11/01/2019

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