The Tenant Fees Bill received Royal Assent yesterday afternoon (12th February 2019) and guidance outlining how the new regulations are to be implemented will be available soon.
After receiving assent, the government immediately issued a press release about the Act.
The press statement confirms that the new rules which come into force on 1st June, apply to landlords and agents, who will no longer be able to charge fees to set up or renew a tenancy in the private rented sector. The new law also means a ban on the majority of other upfront fees payable by tenants to rent a property.
Communities Secretary Rt Hon James Brokenshire MP said,
“Tenants across the country should not be stung by unexpected costs from agents or landlords.
This Act not only delivers on our promise to ban letting fees but also caps deposits at 5 weeks’ rent and sets out how and when landlords can charge tenants fees – helping renters keep more of their hard-earned cash.
This is part of our ongoing action to make renting fairer and more transparent and make a housing market that works for everyone.”
Under the Act, landlords and agents are only able to recover reasonably incurred costs from tenants and must provide evidence of these costs before they can impose any charges.
The full press release can be found at https://www.gov.uk/government/news/james-brokenshire-heralds-new-law-protecting-tenants-from-unfair-letting-fees