2(1)In this Schedule “the deadline for agreement” means the fifteenth day of the period beginning with the day on which the landlord or letting agent receives the holding deposit. for another breach, this becomes a criminal offence. The Tenant Fees Act has a number of provisions around tenancy deposits and holding deposits. TENANT FEES ACT 2019 EXPLANATORY NOTES What these notes do These Explanatory Notes relate to the Tenant Fees Act 2019 (c. 4) which received Royal Assent on 12 February 2019. rented sector. This is capped at £50 per For landlords who take Holding Deposits or use Agents who do, there are some key changes under the New Tenant Fees Act 2019 which should be noted. A similar act, the Renting Homes (Fees etc.) states, for example, that a new standard door key could be valued between Due to the transition provisions they may also require specific actions on tenancies as they are renewed. ‘Tenant If the total annual rent is less than £50,000, landlords and agents are only permitted to ask Ensure you or your agent have proper holding deposit agreements in place, which are written clearly to avoid any confusion for potential tenants who may be under the impression that a landlord is obliged to rent to them if a holding deposit … But the landlord or the letting agent may agree with the tenant in writing that a different day is to be the deadline for agreement for the purposes of this Schedule. If the total annual rent exceeds £50,000 and is below £100,000 then landlords and agents can Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. These are very important as they will bring substantial change to the way many landlords and agents to business. 1. From 1 June 2019, all landlords and agents will (c)the tenant fails to take all reasonable steps to enter into a tenancy agreement before that date. There are a number of fees that are ‘permitted’. the landlord and the tenant fail to enter into a tenancy agreement relating to the housing before the deadline for agreement. No changes have been applied to the text. On 1 June 2020, the Tenant Fees Act 2019 became retrospective. landlords and agents from charging any fees to tenants, other than those AND is reasonable), Council tax, TV licence fees, communication fees include: Any fees not listed on the government’s ‘permitted’ fees If paragraph 3 applies, the deposit must be repaid within... 5. Only pay a holding deposit if you're serious about taking on the tenancy. Show Explanatory Notes for Sections: In the agent takes all reasonable steps to assist the landlord to enter into a tenancy agreement before the deadline for agreement, and, the landlord takes all reasonable steps to enter into a tenancy agreement before that date, but, the landlord or a letting agent instructed by the landlord in relation to the proposed tenancy breaches section 1 or 2 by imposing a requirement under that section on the tenant or a person who is a relevant person in relation to the tenant, or. Penalties for non-compliance are clear and severe. (c)if the landlord has instructed a letting agent in relation to the proposed tenancy, the letting agent did not know, and could not reasonably have been expected to know, the prohibition applied before the deposit was accepted. The deposit amount is determined by the amount of annual rent. Dependent on the legislation item being viewed this may include: Click 'View More' or select 'More Resources' tab for additional information including: All content is available under the Open Government Licence v3.0 except where otherwise stated. to get it right from the start. Need more guidance on As part of the Tenant Fees Act 2019, the amount of tenancy of coronavirus and with more r... Get the deposit cap right with our handy calculator. (a)where the landlord decides not to enter into a tenancy agreement before the deadline for agreement, the period of 7 days beginning with the date on which the landlord decides not to do so; (b)where the landlord and tenant fail to enter into a tenancy agreement before the deadline for agreement, the period of 7 days beginning with the deadline for agreement. Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. the ability to apply to the First Tier Tribunal for a refund of a prohibited 2. This made it illegal for landlords and letting agents to charge certain fees in connection with a tenancy. example as a result of referencing, re-advertising and can charge rent until (c)where paragraph 3(c) applies, the deadline for agreement. Exceptions. If all or part of the amount of the deposit... 8. 3. Colin Young +44 (0) 20 7079 8188 email Colin View profile More articles by Colin. local authority’s discretion as to whether they wish to prosecute or impose a Any deposit taken from a tenant must be protected in one of 9Paragraph 3(b) or (c) does not apply if the tenant provides false or misleading information to the landlord or letting agent and—, (a)the landlord is reasonably entitled to take into account the difference between the information provided by the tenant and the correct information in deciding whether to grant a tenancy to the tenant, or. 5(1)The person who received the holding deposit must repay it if—, (a)that person believes that any of paragraphs 8 to 12 applies in relation to the deposit, but. Penalties will be enforced by trading standards and tenants have The Tenant Fees Act applies to assured shorthold tenancies, fee. For English tenancies, The Tenant Fees Act came into force on 1 June 2019. the three government backed tenancy deposit protection schemes, such as the landlord and the tenant enter into a tenancy agreement relating to the housing, the landlord decides before the deadline for agreement not to enter into a tenancy agreement relating to the housing, or. These mydeposits, within 30 days of the payment being taken. fee – the landlord must be able to show reasonable loss has been suffered, for To accept our cookies, continue browsing as normal. Breach of legislation will usually be a civil offence carrying The Act limits the amount a tenant can be charged for a holding deposit and security deposit and defines what a tenant can be charged in addition to rent. Different options to open legislation in order to view more content on screen at once. 8Paragraph 3(b) or (c) does not apply if—. About the ban What the Act provides: Sections 2 and 3 of the Renting Homes (Fees Etc.) that person does not give the person who paid the deposit a notice in writing within the relevant period explaining why the person who received it intends not to repay it. as a civil offence and carries a penalty of up to £5,000. The holding deposit should only be placed once the general terms of the let are agreed. 3Subject as follows, the person who received the holding deposit must repay it if—. • These Explanatory Notes have been prepared by the Ministry of Housing, Communities and Local Government in order to assist the reader in understanding the Act. According to GOV.UK ramifications. The Tenant Fees Act (2019) set out new rules for how holding deposits have to be treated from 1st June 2019. Changes to Legislation. Excess holding deposit ... Homes (Fees etc.) Landlords cannot subtract fees (including referencing fees) from the holding deposit. deposit that a landlord or agent can request will be capped and dependent on The act only applies to landlords, agents and tenants in England. In this Schedule “the deadline for agreement” means the fifteenth day of the period beginning with the day on which the landlord or letting agent receives the holding deposit. a financial penalty of up to £5,000 per fee. GOV.UK advise that you are able to calculate (b)the landlord or a letting agent instructed by the landlord in relation to the proposed tenancy behaves towards the tenant, or a person who is a relevant person in relation to the tenant, in such a way that it would be unreasonable to expect the tenant to enter into a tenancy agreement with the landlord. £50; there may be circumstances where it is necessary to pay more and ALL Prohibition on Requiring A Tenant to Enter Into A Third Party Contract (1) The person who received the holding deposit must repay... 6. Landlords cannot take holding deposits from multiple tenants at once. the total annual rent for the property. in your bank account. (Wales) Act 2019. They have no grounds for demanding its repayment merely because the tenancy is still in existence now the Act has come into force. Written by . Changing regulation and the introduction of new Acts, such This is the original version (as it was originally enacted). amends that change the contractual responsibilities. How much you can be charged (b)the landlord is reasonably entitled to take the tenant’s action in providing false or misleading information into account in deciding whether to grant such a tenancy. penalty of up to £30,000 as an alternative to prosecution.” It is down to the Implementing both a ban on fees charged to renters and capping the value of holding and security deposits taken by landlords and letting agents, the Act is sure to change the face of the lettings industry. Protect, A refundable holding deposit (up to one week’s rent For more information see the EUR-Lex public statement on re-use.

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