Since 1 June 2019, landlords and agents have been unable to charge a number of fees in England for new tenancies signed on or after that date. As of 1 June 2020, this ban on fees has extended to include most existing tenancies as well.
The tenant fees ban is wide ranging and bars most fees from being charged. Landlords and agents will only be able to charge for payments defined as permitted in the legislation, as follows:
- A refundable tenancy deposit capped at no more than 5 weeks' rent where the total annual rent is less than £50,000, or 6 weeks' rent where the total annual rent if £50,000 or above;
- A refundable holding deposit (to reserve a property) capped at no more than 1 week's rent;
- Payments associated with early termination of the tenancy, when requested by the tenant;
- Payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy;
- Payments in respect of utilities, communication services, TV licence and Council Tax; and
- A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement.
Explanation of costs
Holding Deposit: This is payable at the point of application to reserve the property of your choice. It allows us to check your suitability and serves as a guarantee to the landlord that you are committed to take the property, pending successful completion of referencing.
This payment will secure the property for you for up to a maximum of 15 calendar days from your application date. The tenancy must start within these 15 days, unless otherwise agreed in writing by both parties and cannot be extended any later than 4 weeks from the application date.
On completion of the tenancy, the holding deposit will be refunded within 7 calendar days.
First Month’s Rent: This is payable prior to, or at the point of signing the Tenancy Agreement.
Security Deposit: This is payable prior to, or at the point of signing the Tenancy Agreement. This deposit will be held by The Tenancy Deposit Scheme, unless otherwise stated and is fully refunded to you at the end of the tenancy, subject to the property being in a satisfactory condition and that all the terms of the tenancy have been met. No interest will be paid on the Deposit. Deposits that are not in dispute will be refunded to the forwarding address within 10 working days. For further information on the TDS, please visit https://www.tenancydepositscheme.com.
Subsequent Rental Payments: Payable by bank standing order mandate only. You will be required to complete a standing order mandate before the start of your tenancy.
Please be aware that landlords are still able to charge for late payment of rent, but only after seven days, meaning nothing can be charged in respect of late rent before this. Landlords will be able to charge the Bank of England base rate, plus 3% on an APR basis. However, a late rent payment would only be permitted seven days after the rent due date.