On 1 June a new law banning private rented sector tenant fees will come into effect.
There is now only one stage the Tenant Fees Bill must pass in the House of Commons as it draws close to the end of its journey through the House of Lords.
The bill prevents landlords and agents from taking any payments other than deposits and rent from tenants. It also restricts the amount landlords and agents can ask for as a deposit, and how these deposits are dealt with.
Deposits on tenancies signed after the law comes into effect can be no more than 5 weeks’ rent on properties with an annual rent of below £50,000.
It has been suggested that agents and landlords begin preparing for the new law as soon as possible by the Association of Residential Letting Agents. Their Chief Executive, David Cox, has said: “This now gives agents the legal certainty they need to prepare for a post tenant fees ban world.”
In a statement, Chief Executive Officer of Upad, James Davis, has warned of the impending change to laws.
“Ever since the ban was first announced in November 2016, headlines have focused on the threat that rents will rise, putting additional pressure on tenants and continuing to paint the landlord as the bad guy.”
Davis added that “this doesn’t need to be the case. Most private landlords don’t, in fact, charge excessive upfront costs and whilst it would have been advisable to plan ahead before now, there’s still time to consider how else they can manage their costs.”