{"id":4013,"date":"2017-11-24T10:40:19","date_gmt":"2017-11-24T10:40:19","guid":{"rendered":"http:\/\/www.tayloremmet.co.uk\/blsblog\/?p=1468"},"modified":"2017-11-24T10:40:19","modified_gmt":"2017-11-24T10:40:19","slug":"tenant-fees-bill","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/tenant-fees-bill\/","title":{"rendered":"What does the proposed tenant fees bill contain?"},"content":{"rendered":"<p><span style=\"font-family: helvetica, arial, sans-serif;\">On 1<sup>st<\/sup> November 2017, details of the government\u2019s proposed ban on unfair letting agent fees emerged, with the publication of the draft Tenant Fees Bill.<\/span><\/p>\n<p><span style=\"font-family: helvetica, arial, sans-serif;\">The government aims to make lettings fees fairer and more transparent, and to give greater protection to tenants.<\/span><\/p>\n<p><span style=\"font-family: helvetica, arial, sans-serif;\">The bill is not yet law. However, it gives a good indication to letting agents\/landlords of the likely detail, and the likely extent of the restrictions on fees, so that landlords and agents may better plan for the changes.<\/span><\/p>\n<p><span style=\"font-family: helvetica, arial, sans-serif; color: #003a7a; font-size: 14pt;\"><strong>What Does The Bill Contain?<\/strong><\/span><\/p>\n<p><span style=\"font-family: helvetica, arial, sans-serif;\">With a few exceptions, it applies to landlords and letting agents in connection with assured shorthold tenancies.<\/span><\/p>\n<p><span style=\"font-family: helvetica, arial, sans-serif; font-size: 14pt; color: #003a7a;\"><strong>Key Features <\/strong><\/span><\/p>\n<ul style=\"list-style-type: disc;\">\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">A list of Permitted Payments which letting agents\/landlords may require from tenants. If it\u2019s not on the list, it\u2019s a prohibited payment. An offer of a tenancy may not be conditional upon a prohibited payment being made. <span style=\"color: #003a7a;\"><em>Permitted<\/em><\/span> payments include:<\/span><\/li>\n<\/ul>\n<ol style=\"list-style-type: lower-alpha;\">\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Rent (subject to provisions which stop fees being disguised as additional first month\u2019s rent)<\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Tenancy deposits (up to six weeks\u2019 rent)<\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Holding deposits (not more than one week\u2019s rent and subject to restrictions regarding repayment)<\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Charges for non-payment of rent or other breach (subject to those charges being in the tenancy agreement).<\/span><\/li>\n<\/ol>\n<ul style=\"list-style-type: disc;\">\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Schedule 2, which states when holding deposits may be retained or repaid to tenants, and applicable timescales. Holding deposits may not exceed a weeks\u2019 rent. Examples of when a holding deposit may be retained are where the tenant does not pass Right to Rent checks, where the tenant has provided false or misleading information, or where the tenant pulls out from entering the tenancy agreement\/fails to take the required steps to enter the tenancy agreement. If the tenancy proceeds, the holding deposit can be put towards the first rent or the tenancy deposit.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0.<\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Where properties are advertised on third party websites the agent\u2019s fees (or a link to them) must also be published on the website.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Enforcement will be by Trading Standards Departments.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Tenancy deposits limited to no more than the equivalent of six weeks\u2019 rent.\u00a0<\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">All letting agents must have tenant money-protection in place.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/li>\n<li><span style=\"font-family: helvetica, arial, sans-serif;\">Financial penalties: not more than \u00a35,000 for breaches of Section 1 or 2 or Schedule 2 (prohibited payments and holding deposits) and not more than \u00a330,000 for a Section 9 offence (repeat offenders).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: helvetica, arial, sans-serif;\">The bill will not have retrospective effect and will not apply to long leases, social housing, or common law tenancies such as company lets and high value tenancies.<\/span><\/p>\n<p><span style=\"font-family: helvetica, arial, sans-serif;\">Watch this space for further developments on the bill\u2019s progress.\u00a0 In the meantime landlords\/agents should consider what fees for tenant default are included in their tenancy agreements.\u00a0 If landlords\/agents charge fees for items which are not permitted payments, such as for preparation of the tenancy agreement or for credit checks and references, they should consider who will meet the costs of those when the bill becomes the Tenant Fees Act 2017.<\/span><\/p>\n<div class=\"mceTemp\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On 1st November 2017, details of the government\u2019s proposed ban on unfair letting agent fees emerged, with the publication of the draft Tenant Fees Bill. The government aims to make lettings fees fairer and more transparent, and to give greater protection to tenants. The bill is not yet law. However, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1499],"tags":[1771,2023,2024],"class_list":["post-4013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-litigation","tag-landlords","tag-tenant-fees","tag-tenant-fees-act-2017"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Tenant Fees Bill - proposed ban on unfair letting agent fees<\/title>\n<meta name=\"description\" content=\"On 1st November 2017, details of the government\u2019s proposed ban on unfair letting agent fees emerged with the publication of the draft Tenant Fees Bill.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tayloremmet.co.uk\/blogs\/tenant-fees-bill\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Tenant Fees Bill - 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