What is the Tenant Fee Ban and how does it affect renters?

What you’ll find in this article:

• What is the Tenant Fee Ban? 
• What does the Tenant Fee Ban mean for renters?
• What does the ban mean for existing tenancy agreements? 
• Who does the ban apply to? 

What is the Tenant Fee Ban?

The Tenant Fee Act was introduced by the Government to stop landlords and letting agents adding extra fees to a renters tenancy agreement. Previously, tenants could be charged for a number of extra things on top of their rent. 

This included: 

• Referencing and guarantor checks
• Inventory checks
• Credit checks
• Administration fees
• Viewings – tenants cannot be charged for looking at a prospective rental property.
• Check out fees 
• Professional cleaning fees at the end of a tenancy 
• Renewal of tenancy agreements

The Tenant Fee Ban also capped the price of deposits that landlords and letting agents are able to ask for. Deposits have been capped at five weeks’ rent for most properties. However, if the yearly rent is over £50,000, the landlord is able to ask for six weeks’ rent. 

Although The Tenant Fee Ban bans these fees, as a tenant you do still have some responsibilities that you should keep in mind during your tenancy. Check out our article here to see what your tenant responsibilities are. 

What does the Tenant Fee Ban mean for renters?

The main aim of introducing the tenant fee ban is to make renting a property more affordable and more accessible. As previously stated, your landlord or agent can no longer charge you for numerous extra charges on top of your rent. 

If you’re a renter and you think you’ve been illegally charged a fee that is on the banned list, we advise you to reach out to your landlord or letting agent. If this is unsuccessful you can also check out the Citizens Advice website. Another option is to contact your local authority for further information on how to dispute the fee. 

It’s important to know what your rights are as a renter. For an in-depth breakdown on what you’re entitled to when you’re renting a property, click here. 

If you’re a student, check out this article for an in depth list of your rights as a renter. 

If you want to know more about the previous tenants’ experience with their landlords you can check Resooma’s property, agent and neighbourhood reviews. You can even request for us to get a review for you.

What does the ban mean for existing tenancy agreements?

If a tenancy agreement was entered before June 1st 2019, any extra fees that were agreed upon in your tenancy will need to be paid until the 31st of May 2020.

After the 1st of June 2020, the term requiring that payment will no longer be binding. If your landlord accidentally charges you for one of the banned fees, they must return the payment within 28 days. 

Who does the ban apply to?

The tenant fee ban applies to all assured shorthold tenancies, which covers the majority of tenancies in the private rental sector. This includes student accommodation tenancies and licences to occupy housing in the private rented sector in England. 

For more Tenant Fee Ban guidance, check out the full government guide here.

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