Only the landlord OR agent can request the interest payment. Latest news on the Tenant Fees Act 2019. I have previously worked alongside solicitors and I can happily say that BHW have been the best in my experience, I would not hesitate to use them again. where it is used towards payment of rent or a tenancy deposit with the consent of the payee; the prospective tenant is disqualified as a result of their immigration status and the landlord/ letting agent did not, and could not reasonably have been expected to know, the disqualification applied before accepting the deposit; where the tenant provides false or misleading information to the landlord or letting agent and the landlord is reasonably entitled to take this information into account; the tenant decides not to enter into the tenancy before the deadline for agreement and neither the landlord or letting agent have breached their obligations under the Act nor behaved in a manner that would make it unreasonable to expect the tenant to enter into a tenancy agreement with the landlord; or. I didn't proceed with the purchase, but I would use them again without hesitation. This means any payments required after 1 September 2019 in relation to tenancy agreements, such as check-in fees, check-out (or ‘exit’) fees, administration fees, inventory fees, guarantor fees etc. The person who received the holding deposit must repay this to the tenant in the following circumstances: The deposit need not be repaid in the following circumstances: Holding deposits paid before 1 June 2019 are outside of The Act. Compare for example tenancy deposit schemes where if an agent fails to protect or give correct information, the landlord is (unfairly in our view) restricted from serving a section 21. I needed some urgent advice about an auction property, and the solicitor that dealt with me was brilliant: professional, clear and quick. The tenancy will continue to have effect, as far as is practicable, in all other respects. With the Tenant Fees Act coming into force in England on 1st June 2019, and the Welsh fee ban due to follow suit in September, there are lots of questions to be answered. A person on whom a final notice is served may appeal to the First-tier Tribunal against—. Where the annual rent is equal to or greater than £50,000, up to six weeks deposit is allowed. However, the amount that can be requested by a landlord or agent is changed. The same goes the other way round (so if an agent has already requested and then the landlord subsequently requests an interest payment, the landlord has requested a prohibited payment). due to false information resulting in a tenancy not being granted) the landlord or agent can then take a further holding deposit from another prospective tenant. What I’m not clear on is, if a contract that’s not due to start until after June 1- say August for example- is signed prior to June, will these fees need to be returned to the tenant? You call the letting agent to discuss the deposit. Subject to a one year transition (see in a moment), the prohibitions relating to landlords do not apply to-. This is a sweeping change which landlords and … For example, if we say a tenancy starts on 1 July and we say the rent for July is £900.00 (P1) and then from 1 August it’s £700 per month (P2), as the amount for P1 is greater than P2, the difference is prohibited (in our example the difference is £200 and it is that which is the prohibited payment – the £700 being a permitted payment). Changes to Legislation Revised legislation carried on this site may not be fully up to date. Note: only a payment of council tax to a billing authority is permitted. Does it apply to me? Requiring a property to be professionally cleaned has long been deemed as an unfair term by the Office of Fair Trading so could easily be challenged by a tenant now, let alone under the Tenant Fees Act. Following the introduction of the Tenant Fees Act 2019 (summarised here) from 1st June 2019, the legislation outlines various information in relation to permitted fees and prohibited fees.. We have outlined what the fees are and how they will affect all assured shorthold tenancies, student accommodation and licences to occupy in England (only) entered into from 1 June 2019. Only one holding deposit may be held at any one time for the same letting unit so taking multiple holding deposits from multiple prospective tenants is not allowed. We have discussed earlier that for an existing tenancy (entered into before 1 June 2019), any term that requires a prohibited payment after 1 June 2020 ceases to be binding and any prohibited payment received must be repaid within 28 days. A landlord or letting agent must not require a relevant person to enter into a contract with a third party in connection with a tenancy of housing in England if that contract is —. It’s nice to see this legislation being fairer in this regard. So what permitted payments are landlords or letting agents allowed to receive? Of course, what you can charge with regards to permitted fees is widely reported in detail. Section 83 of the Consumer Rights Act 2015 (duty of letting agents to publicise fees etc) is amended and where an agent is carrying on letting agency work in England and advertises a dwelling-house on a third party website, the agent must ensure that a list of the agent’s relevant fees is published on the third party website, or there is a link on that website to a part of the agent’s website where a list of those fees is published. Thank you. 30 September 2020. The act will ban any prohibited fees in all existing tenancies on 1st June 2020. Our tenancy agreements are currently being updated to reflect the changes (for example by changing the interest rate for unpaid rent and a few other tweaks). 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