Changes in the Rental Agency Laws!
Come June 1st, the lettings landscape is changing. The long-awaited Tenant Fees Act that began in 2017 comes into force and landlords and lettings agents will no longer be able to charge for a range of services.
The Act is undoubtedly designed to make renting cheaper, with tenants expected to save around £272 on average. So, great news for tenants, but what about their landlords?
In this article, we’ll explore the Tenant Fees Act in more detail, as well as look at the impact it could have on landlords and they will charge some rental agency fee. With the ban there are many changes which are done in the favour of tenant while, the obvious charges for rent and deposits, agents and landlords will also be permitted to charge tenants fees for:
- The early termination or change of a tenancy when requested by the tenant.
- Utilities, communication services and Council Tax.
- Payment of damages where the tenant has breached terms in their tenancy agreement
- Payment which are arised from a default by the tenant where they have to replace keys or a respective security device with a charge for late payment of rent.
The changes coming into force will only apply to new tenants or renewals, so landlords who have already charged fees do not have to be worried about retrospective fines.
However, any clauses in existing tenancy contracts that layout fees that will become unlawful will become void from June 2020. There’s no doubt that the Tenant Fees Act 2019 will have an impact on landlords, but it is important to remember that while the Act has been given Royal Assent, we do not yet have all the information at Plaistow E13.
The Government is expected to publish further information for lettings agents and landlords to help them make the transition to the new laws. In short, the full impact of the Act will not be seen until it is implemented. To finish on an optimistic note, though, some experts are predicting growth in the rental market will be enough to absorb any extra costs landlords face, so doom and gloom is by no means a foregone conclusion.