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Upcoming Changes to Tenant Fees – Letting Agents and Landlords to Take Note

From 1 June 2019 the Tenant Fees Act 2019 (“the Act”) will impose restrictions on fees that can be demanded from tenants of newly granted Tenancies (such as ASTS, student lettings and licences to occupy Read more...

From 1 June 2019 the Tenant Fees Act 2019 (“the Act”) will impose restrictions on fees that can be demanded from tenants of newly granted Tenancies (such as ASTS, student lettings and licences to occupy housing). These restrictions will be imposed on existing tenancies from the same date, representing a shift in how homes are let and the associated costs for new residents.

The Act will still allow a number of permitted payments such as rent and tenancy deposits (with a cap), but will impose restrictions on fees such as tenancy set-up fees, viewing fees, credit check fees, inventory charges and check-out fees, to name just a few examples where tenants could currently find themselves charged.

The Act will apply to both landlords and letting agents. Any clauses within a tenancy agreement or letting agreement which contains such prohibited fees will not be binding on the tenant or the tenant’s guarantor, or anybody acting on behalf of the tenant. However, the rest of the agreement will continue to be enforceable as far as practicable.

Landlords and letting agents are encouraged to familiarise themselves with the revised regulations to ensure they do not fall foul of the new rules come June 1st.

For further details please contact the property team at Lawrence Stephen Solicitors.

If you would like to discuss any of the topics raised in the above article, please call us on +44 (0)20 7936 8888, email on enquiries@lawstep.co.uk or contact a member of the team below.

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