Lettings legislation has seen an unprecedented number of changes over the past 18 months. The Government’s aim is to improve standards in the rental market – but their good intentions are leading to over-complication. I know experienced agents that are confused by the implications, so it’s no surprise that independent landlords are struggling to get their heads around it all.
The Tenant Fee Ban is a piece of legislation that is due to come into effect on 1st June 2019. It will prevent landlords and lettings agents from charging fees to private renters when they set up a tenancy agreement. The main features of the bill (which is currently awaiting Royal Assent) are as follows:
- No tenancy agreement fees, referencing fees, inventory costs or administration costs to be charged to tenants.
- Holding deposits to be capped at one week’s rent
- Security deposits to be limited to 5 weeks’ rent.
The impact of these changes on landlords remains to be seen. We anticipate that some agents will pass the charges on to landlords, but the general feeling is that, ultimately, the extra burden of costs will push rents up.
You would be wise to contact your lettings agent or property manager now to check how they plan to manage this legislation and whether they will be passing the costs on to you.
If you have questions about how the ban will affect your rental property, or you’d like to discuss any other aspect of lettings legislation, please get in touch. Our small, friendly and highly experienced team can help you mitigate the financial impact and suggest ways to manage your costs on an on-going basis.
Call us on 020 8549 8064 to find out more.