Thank you for contacting me about tenant fees.
Unexpected letting fees and high deposits can cause a significant affordability problem for tenants. These fees, when not clearly explained, can leave many residents unaware of the true costs of renting a property. That is why I am glad that the Tenant Fees Act reduces costs at the outset for tenants and improves transparency in the private rented sector. The provisions apply to all applicable assured shorthold tenancies, tenancies of student accommodation and licences to occupy housing in England.
The Act abolished letting agent fees for renters, introduced a cap on tenancy deposits at five weeks’ rent, and saves tenants between £25 and £70 per year. This is helping, in the words of Shelter, to “ease the significant financial pressures renters face when moving, whilst making the lettings market more competitive and transparent”.
Where a landlord or agent charges a prohibited fee, local authorities can subject them to a fine of up to £5,000. Repeated breaches of this protection for renters will be considered a criminal offence, with penalties including even higher fines and a ban from acting as a landlord or agent for at least one year.
I am confident that the Act is continuing to help make renting fairer and more affordable for tenants by reducing the costs at the outset of a tenancy, as well as improving transparency and competition in the private rental market which is benefitting tenants, landlords and letting agents alike.
Thank you again for taking the time to contact me.